So you want to destroy the United States of America? The US has one major
weakness that could destroy the United States of America: THE MONEY SUPPLY
Consider the Archilles Heel of the United States: Debt! How much Debt? As
of June 15 2004 it is $7,214,233,343,501.43.
The fact is that the United States of America and its corporate backbones have a
fatal flaw: The need for new money. The US Corporations need about 1,347.1 billion
dollars of commercial paper. Commercial Paper is an unsecured note that is has a
maturity of less than 271 days. The Commercial Paper market is extremely volatile
since it reflects the interest rates in the short term market. The commercial
paper demand is at 2.02%. Commercial Paper are typically issued at several
million dollars and are bought by Money Market Funds. The thing is that you can
not buy the commercial paper and then get out of debt when it matures, it must
typically be refinanced. To do this, the Corporations need quick access to funds
and that means wire transfers.
Let us look at the weaknesses in our money supply. One weakness of the money
is in wire transfers. The Fedwire Transferred $436,706.269 last year. If the
Fedwire is transfers can be disrupted, then the monetary supply can be disrupted.
Check clearing is worse. By law, banks only give you the money when the check
clears. If the Fed is removed, then it may take ten days for check to clear
cross country. So what will happen? Most corporations will take advantage of
the float and pull all their money to high floating places to earn extra credits
on their money. This places corporations in hell or high water. Unable to
transfer money where it is due, and unable to get money on a short term basis
to cover any expenses. This also means that people will have to have extra
money in their accounts.
The Treasury Department will not be much better off. The treasury always has
several million hundred million dollars worth of bonds to pay off every year.
If the Federal Reserve is eliminated, then the Government will have be forced
into a dilemma. In order to attack the terrorists, the Treasury Department will
have to slow down payments to social welfare. Social Welfare Receivers will not
be able to receive their money for a couple of weeks. This will occur for
several years. As a result, people will simply stop receiving social welfare
money. As a result, nursing homes and the poor's only lifeline will be gone.
The Nation will die. Unable to pay the money it owes, the United States will
declare a sovereign default. As a result people will lose their inheritance,
and Americans will go to Mexico seeking better paying jobs.
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