Our Place In The World: U.S. Mortgages Its Sovereignty

I think the key point of the article was: <br />
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"With the United States barely able to debt-finance the war in Iraq, our foreign creditors are not likely to foot the bill for another controversial U.S. military operation. In other words, the ability of the United States to defend itself against the next (real) threat is severely circumscribed by the Bush administration's ideological commitment to tax cuts and its refusal to exercise even a modicum of fiscal discipline." <br />
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Somebody tell me again how this guy got re elected? Oh yeah these guys: <br />
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<a href="http://www.freerepublic.com/focus/f-news/1273573/posts">http://www.freerepublic.com/focus/f-news/1273573/posts</a><p>---<br>When an invasion can bring a country its freedom then unconsciousness is true happiness.

Foreign governments and investors park their money in the U.S. because it's a safe place and long-term prospects are good. Unlike Europe, productivity remains high and the population isn't aging at its scary rate. Every country has an interest in keeping the most vital economy in the world roaring along. When it sneezes, the rest catch pneumonia. Consider your own situation. Shake a lot of salt on any article with Progressive anywhere in its title.

I think the key part was the one below. The US Debt is backed by Adam Smith's invisible hand as well as the iron fist of its military might. If financers balk at the war on terror and think that the US will be mired in Iraq, they may or may not be willing to buy US debt. If they lose faith, they will need higher interest rates. If they are happy with the US continually rolling over the debt in a perpetual war, then they'll keep buying. A lot of home mortgages in the US are on variable interest rate terms, and an increase in interest rates will mean higher debt servicing costs when it comes time to re-finance. The lags will take some time, but higher mortgage payments means less disposable income with which to run the economy.



"The United States may be "exceptional," but international bankers are unimpressed. When you owe as much as we do to foreign creditors, sooner or later they will call the tune and we will be obliged to dance. Our foreign creditors don't even have to call their loans to bring on the ultimate day of financial reckoning. All it takes is a sharp decline in their willingness to finance further fiscal profligacy. Interest rates will be forced up, bond prices will nosedive and interest-rate-sensitive industries will feel the pinch, especially real estate that is probably overpriced anyway. A rapid contraction of U.S. economic activity is far from unthinkable, and with it a worldwide reduction in trade, investment and economic growth. "

We? Who are these commentators talking about "Our" place and the U.S. mortgaging their future? More treason?

I don't give spit about Americans. We as Canadians are by definition anti-American, at least that was the founding principle of Confederation.

More Western-Canada treason?

Remember, unlike the eastern provinces, there are no legal guarantees that the Western provinces (excluding British Columbia) may retain their "territorial integrity."

The Western 'provinces' need to be put back in their place. They are a colony of the rest of us. Get used to it. If you don't like it, leave. There are plenty of Canadians willing to make the West Canadian.

As an Albertan, I find your West bashing a little offensive. So I may as well set a couple things straight through your Eastern heads:
1) We are the only debt free province.
2) As far as we're concerned this bilingualism, federalist crap is an Eastern problem... we're beyond childish feuds.
3) There's alot more jobs in Calgary than Toronto, so I think alot more Canadians will become Albertanized.
4) We really don't care if Quebec separates because this province gives those ungrateful bastards money anyways! If they leave, it's more for us, so GOOD RIDANCE!
5) You're right, for a long time the East did view us as colony... but we don't need integrity given to us by law. We got guns and oil and far as we're concerned you can all freeze in the dark. If you object try to send your "army" to stop us. I'm fairly positive a few farmers with guns in Lethbridge can take care of the sorry army that Eastern governments have brought.
6) The sooner Alberta leaves this sorry country and joins the states or declares nationhood the better... In fact, maybe the entire West should join and suprise all of you. I feel much more at home in Vancouver than Toronto anyways.
7) I know we lost the cup and all, but the Flames rule and the Habs and Leafs are a thing of the past.
In no way whatsoever will I insult the Eastern Trailer Park Boys.... they will be allowed here with full asylum.
9) If you're offended in anyway whatsoever by this post. Kiss my Oil Rich redneck ass.
10) If you Easterners are interested in jobs (which seem to be lacking everywhere else in the country), we got plenty. If not, then just take our money through equalization, it seems to be working well with Quebec. I'll indirectly see you in the welfare line. And oh yeah, don't mention the billions over time we've had to give you in equalization either. You're very welcome for all of the schools and roads we've bought you.

Thanks, that's all folks. If you need me I'll be enjoying my Kokanee in the Banff Hot Springs. Ciao

anons, chill. I would delete your comments for offensiveness and off-topicness, but they've got some good points in them (BOTH of them). And you seem to be first time offenders.

Regardless, play nice, or I'll get all delete-y on you both. Civil discussion is the name of the game, not argiung over old and likely insolvent rivalries.

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Jesse

Alternately, the Chinese are keeping the shell of America afloat while they re-structure and position their economy exactly where they want it. The weapons door opens from Europe, the fundamentals of their economy in place, bam! They pull their currency from being pegged so low -- and can you guess what happens? A trillion dollars in value evaporated over night. Suddenly the Americans aren't buying up foreign companies anymore. Suddenly those big fat American bank accounts don't look so big anymore (at the same time, all that debt in American dollars also doesn't look so big). The Chinese now have the power to exact this change by simply refusing to finance the American debt. Currently they need $2 bln a day! What if someone says "No." You say, Anon, that the world needs America. Just like the Marlboro man needs his smokes. Look out for the Chinese, they're showing signs of having quit and they're looking pretty jumpy...

Oh *sigh* two anonymous trolls excited for a fight.

Here's what I think. I've spent a lot of time in Alberta, and it's funny how many times I heard that lovely maritime accent out there. Or that crisp Toronto accent, or that BC drawl. I've heard it all out there. The country has rushed to Alberta, and good for them. Success for one of the family, means we're all better off. Ontario has been funding this dream called Canada for a long time. Now its time to broaden the stage and say - Welcome aboard Alberta. I hope Albertans can embrace and celebrate this wonderfully weird experiment called Canada -- and add something to it that was never there before. Like a Chinook on a Canadian winter, warm us up!

People talk about Alberta's oil wealth as if it undermines their success. I disagree. It is lucky, no doubt, but there was some clever planning that allowed them to make use of that wealth and build a society around it. A huge part of that was Trudeau's requirement that companies selling and buying oil in Alberta had to have their head office in Calgary. This regulation enfuriated thousands of people (especially those from Houston) but even Peter Lougheed marvels at the tenacity, vision, and wisdom behind this policy.

Point being -- success comes from a willingness to stand together and demand a better world to live in. There's no need to do it in the name of separatism. Do it in the name of Canada and the whole country will rise up with you.

I do believe we are truly desperate for a Rene Levesque, a Pierre Trudeau, or a new John A. MacDonald to lead us up and into our great potential. Petty provincialism misses the point of how powerful we can become if we stand together and chose to make it happen.

G

China is rapidly becoming America's biggest trading partner, with all that implies. The Chinese are not irrational, despite the decades of Marxism, and are rapidly becoming a capitalist society. That means it will be guided by self interest, not discredited ideology. Its self interest is not advanced by destroying markets, however gleeful the prospect might be for spectator countries like Canada.

That was the most childish and anti-canadian rant I've ever heard, even from an Albertan! You lend credence to the oft uttered disdain for Albertans that many TRUE Western CANADIANS in BC feel. You have guns and oil? First of all, you sound like a fucking texan and secondly, where will you be when your precious oil runs out? Do you think the americans will want you then? Think again. You need to accept the fact that FIRST you are a Canadian and SECOND, you are an Albertan because even when you've pumped your last drop of water into the earth to extract your last drop of oil, Canada will still accept you and we will send you equalization payments because we're all Canadians and Canadians will look after Canadians.

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Canada for Canadians

<i>The sooner traitors like you leave the better. </i><p> You were warned Anon. Post deleted. <p> Posters may notice we're using a pretty heavy hand lately. Get used to it.<p> <p>---<br>"If you must kill a man, it costs you nothing to be polite about it." Winston Churchill <br />

Most Albertans do not feel as anon poster. I for one am Canadian first, Alberta is part of Canada and not the best part, every region has its positives, we happen to have oil today. Those equalization payments are such a hyper but what is forgotten is that Ontario used to send money to Alberta, we were on the receiving end of equalization before the oil. That is part of what makes Canada so great. Yes Alberta oil provides jobs, and that is good, if we could get our politicians to implement policy to produce more in Canada rather than exporting raw materials we would all have more jobs and a better lifestyle. We could end the poverty and people living on the streets, as we know many live in poverty and are homeless even in Oil rich Alberta. So stop beating your chests, until we really have equality for all there is nothing to brag about!

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If I stand for my country today...will my country be here to stand for me tomorrow?

Boy, where are people`s allegiances? Eastern bastards freeze in the dark? Wow, that`s over 20 years old. But, let the US have as much oil as they want for almost nothing? Yeah, that makes real sense! Did this same anon wave the Canadian flag when Canada won the world cup of hockey, or the olympics? Either you`re Canadian, or you leave for a country that suits you best. Bandwagons are for winning sports teams.

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Dave Ruston

Sigh...


Your local jewish censors deleted my post.

Live with your 'freedeom'.