On April 21, the International Monetary Fund (IMF) projected (see the World Economic Outlook, pp. 36-37) that the US foreign debt will increase from about 4.5% of world GDP in 2007 to about 9% in 2009. Given that the US foreign debt was 17.7% of US GDP at the end of 2007, this means that our foreign debt will be about 35% of US GDP by the end of this yearUS Foreign Debt jumps to 35% of GDP, Raymond Richman, Howard Richman, and Jesse Richman, American Thinker, May 5, 2009
The American Thinker’s team of Richman, Richman and Richman has put a face on what’s going on in financial policy in DC. Read it to see why this vast pile of debt, accelerated by unprecedented federal deficit spending, is for all practical purposes a set-up for massive printing of currency by the Treasury. What happens then is familiar to any survivor of the 1970s. The dollar’s value declines. In the 1970s it declined at about ten percent a year. As it does, prices go up and up and up and up.
It’s called de facto devaluation. It’s the Argentine solution to crisis. When encountering disaster, print more money, raise prices, seize the wealth of the nation. This lawless administration is even more careless than Nixon and Carter’s in the 1970s. Their Treasuries did much the same thing. It is clear that somebody in one-party Washington shares radical anti-American George Soros’s principal objectives: to bankrupt and humble the United States; and to enrich himself and his sons. They’ve found the tyrant to do the dirty work. Will you cheer Caesar on?