Debtor is as a Debtor Does (by Byron Williams at HuffPost)

[marmar]

Byron Williams
Debtor is as a Debtor Does
Posted July 25, 2007 | 01:23 PM (EST)


In 1956 President Eisenhower learned that Britain, France, and Israel had invaded Egypt ex post facto. The president was not pleased about the news and took immediate and decisive action: he instructed the Federal Reserve Bank to orchestrate a run on the pound and block the International Monetary Fund from the stabilizing the currency.

By holding Britain's currency hostage, based on a scenario he created, Eisenhower sent word by his actions that the U.S. would not assist in their economic bailout unless there was an immediate withdrawal from Egypt.

One of the lessons learned from this rather dubious affair: there can be no independent foreign policy if someone else controls your currency. It also begs the contemporary questions: how independent is American foreign policy? And how close is China from possessing the ability to do to the U.S. what Ike did to the British?

How long can we continue to consume in a manner whereby the gap between our consumption and our production is roughly the equivalent to the output of Brazil--which by the way has the 10th largest economy in the world.

This is not exactly the type of focus-group-driven-issue likely come up on the campaign trail next year. But China has become the economic boogieman, and like so many of our foreign policy ventures we know little about them.

We know they have more people than us, an artificially devalued currency, depressed wages, and they produce many of the things that satisfy our ravenous consumer appetite. Just imagine, without China, even using our homes as ATM machines, would not allow us to satisfy our consumer desires for audio systems, theatre size televisions, computers, iPods and iPhones at the current rate. .....(more)

The complete piece is at: http://www.huffingtonpost.com/byron-williams/debtor-is-as-a-debtor-doe_b_57791.html

[Faygo Kid]

1. I know his flaws, but I Like Ike.

We will never ever see another moderate Republican.

Rush Limbaugh saw to that starting in about 1989. Father Coughlin was a piker.

[Possumpoint]

2. Too Late!

We are now at the point where our foreign relations are being controlled by our debt. China is pumping poison and less then quality products into our ports and our government acts as if their hands are tied. If we take appropriate action, China will ditch their hold on our currency and cause a major devaluation of our dollar.

We need to extend our thanks to 70 plus years of allowing the Federal Reserve to pump fiat dollars into the economy without check. Every politician during this era should have their posterior extremities kicked up to their shoulder blades. They should be forced for forfeit any and all pensions they receive.