The North American Union.....

The Powers That Be…. Have long ago decided for the citizens of Canada, Untied States, and Mexico that to compete in a global economy what is necessary is an economic, military, and social tribunal of Nations to be known as:

The North American Union. The monetary unit of The North American Union is to be the ‘Amero.’

You might ask how in the world they plan to pull this off? It’s very easy….The United States, thanks to the traitor Franklin D. Roosevelt, with the birth of the FED, became a debt-based monetary system. The shackles of Economic slavery upon the United States are in the form of a debt which there can never be enough money to repay both the principal and pay interest unless debt is continually expanded.

So, the more we borrow, the more we owe. The more we owe, the more we borrow… add nausea. This becomes an ever widening economic pit by which we dig ourselves further and further into debt.

Debt-based monetary systems do not work in reverse, nor can they stand still without a liquidity buffer in the form of savings or a current account surplus. Something which ‘Junior ’ or ‘W’ as his friends call him has made sure that due to the Iraq war the United States no longer has the ability to sustain itself as a viable economic entity.

As a matter of record, as of August 1st 2007 the Iraq war debt has reached 400 billion US dollars. The President of the United States or ‘W’ as his friends call him, has bankrupted the United States with an unmanageable, un-repayable, war debt of over 400 BILLION that BILLION with a B, US dollars. This does not even take into account the interest on a debt of 400 Billion. The finial debt with interest could exceed 5 TRILLION dollars. That’s not even taking into account the 1.5 - 3 TRILLION annually we are incurring aside from the Iraq war debt.
Let’s examine just how much debt the United States is incurring presently. According to the most recent Flow of Funds report from the Federal Reserve, total credit market debt (TCMD) expanded by $799 billion in the third quarter of 2005. At this rate, debt growth for a single year is $3 trillion, or 50% greater than total US industrial production. Since 1987, the year Alan Greenspan became chairman of the Federal Reserve Board, TCMD has more than tripled, from $13 trillion to $40 trillion, and now accounts for well over 300% of GDP. This debt growth is without precedent by any relative or absolute measure, evidence that the US has experienced a debt bubble.


Traditionally, savings finance debt. As the US savings rate has been anemic for years, many establishment economists, Ben Benanke among them, have claimed that US debt growth is supported by the inflow of surplus savings from abroad-the global savings glut thesis. Net purchases of US debt by foreign interests, though, are less than $1 trillion per year, far short of annual debt growth of $3 trillion. Some commentators are quick to point a finger at the Fed; it's printing money they say. This too misses the mark. As of 9 December, Fed credit was up just 3.8% YoY and the combined balance sheet of the 12 Federal Reserve Banks is barely $1 trillion.
The pump for the epic American debt bubble is neither foreign savings nor the Fed. For the $27 trillion of debt created during his tenure, Alan Greenspan can thank the private sector and the government-sponsored enterprises (GSEs). The Fed may be negligent for loosing control of the credit system, but it is not directly responsible for what has occurred since. The GSE's combined book of business, for instance, dwarfs the Fed balance sheet at nearly $3 trillion. Anchored by the money center banks, a vast constellation of financial entities, including mortgage lenders, consumer credit firms, and the financial arms of industrial enterprises, has blossomed to do with a vengeance what the Fed itself would not; create a seemingly unlimited quantity of debt out of thin air through loan origination.


Debt is self-liquidating when used to generate future income, from which interest is serviced and principal repaid. Used for any other purpose, it is non-self-liquidating and results in payment obligations with no countervailing source of income. Of the $3 trillion in debt created this year, households used about 50% for mortgages and consumer loans, governments 25%, and companies 25%. Only companies incur self-liquidating debt, so at least 75%, or $2.25 trillion, of the debt has produced a future burden rather than an income stream. Companies, though, are no white knights. They have mostly used their $750 billion of the debt pie for purposes other than capital investment, namely to cover unfunded liabilities and buyback shares they liberally printed to reward management in the first place. The US is, thus, at or close to a situation whereby the percentage of debt financed by domestic savings is zero and the percentage of non-self-liquating debt is one hundred.


A debt-based monetary system has a lifespan-limiting Achilles heel: as debt is created through loan origination, an obligation above and beyond this sum is also created in the form of interest. As a result, there can never be enough money to repay principal and pay interest unless debt is continually expanded. Debt-based monetary systems do not work in reverse, nor can they stand still without a liquidity buffer in the form of savings or a current account surplus.
When debt grows faster than the economy, the burden of interest is bearable only so long as the rate of interest is falling. When the rate of interest reverses course, interest charges start rising faster than debt growth. This point was reached on 16 June 2003, the day the yield on the benchmark 10-year Treasury bottomed at 3.09%. Since then, debt grew from $32 trillion to $40 trillion, an increase of 25%. During the same period, annual interest charges rose by over 50%, from $1.28 trillion ($32 trillion at the prevailing average interest rate for debtors of 4%) to $2.0 trillion ($40 trillion at 5%). When interest charges exceed debt growth, debtors at the margin are unable to service their debt. They must begin liquidating.

Dipping into savings or running a current account surplus can offset liquidation for a time. The greater the pool of savings and the current account surplus, the longer an economy can endure liquidation at the margin without experiencing cascading cross-defaults. The US in the early 1930s and Japan in the early 1990s had such a liquidity buffer. In both cases, mobilizing domestic savings to increase government debt reversed the decline in total debt outstanding in two to three years and interest rates stayed low because savings financed the new debt. As a result, interest charges no longer exceeded debt growth and the need for marginal debtors to liquidate disappeared.

The US is now in a fundamentally different position than it was in 1930 or Japan was in 1990. Aside from a dearth of domestic savings, its vulnerability is compounded by a current account deficit. There is no buffer and no margin for error. Thus, when interest charges, now $2 trillion per year and accelerating, overtake annual debt growth, now $3 trillion and decelerating, liquidation will immediately trigger cascading cross-defaults. Without domestic savings to mobilize, the Fed cannot facilitate the expansion of government debt to fill the breach and simultaneously hold down interest rates. It cannot win the battle to keep debt growth greater than interest charges, the precondition for the viability of a debt-based monetary system. Once started, cascading cross-defaults consume all debt within an economy.

This leaves the Slave Masters…the Fed with only one option…. Listen closely…Put your ear to the monitor…are you ready……here it is….

“Institute a new monetary system with a new currency.”

“Ta….da!” It’s magic! Now you see it…Now you don’t! Apple sauce… Apple Sauce…Thank you…thank you very much.

I am afraid ‘W; has left the building!

I will end where I began….

The tribunal of once sovereign nations will now be known as The North American Union.

The monetary unit of The North American Union is to be the ‘Amero.’


Legal Disclaimer: The North American Union is not affiliated in any way with the former United States of America. All monetary claims on or due the United States of America should be forwarded to the following address(Which no longer exists):


‘You Got Screwed’
1700 Pennsylvania Ave.
Washington D.C.
USA

RUSSIA TESTING BRIT RESPONSE?

During the Cold War NATO had to maintain High Alert interceptor capabilities on short notice to stop Soviet Long Range Nuclear bombers from turning most of Western Europe into a radioactive waste land.

This sort of activity has not been seen in years. Increasingly, Russia is placing the UK and her Allies on pins and needles. Those Western powers which have signed a non-aggression pact with the new Russia have not had the same instances of air space violation as those who choose to forgo the signing of the 2004 Russian non aggression pact. It might be instructive to remind President Bush and the new UK Prime Minister Gordon Brown that the new Russian federation is far stronger then ever was the former Soviet Union!

Norwegian military spokesman Lt. Col. John Inge Oeglaend said his country's F-16s were sent into action multiple times over the last few weeks. Most recently when two Russian Tu-95 heavy bombers headed south towards the Norwegian coast deep into international air space. They turned around just above Aberdeen on Scotland's North Sea coast only two minutes from invading UK airspace.

In another bold face attempt to test UK air space defenses, two Tu-160 long range nuclear equipped bombers were spotted flying straight at Norwegian air space over the Barents Sea.

Oeglaend characterized the incidents as troubling. trying to down play the seriousness of these repeated military incursions the Norwegian head of Air Defense said that these incidents were highly unusual. Especially, when you consider that the first two bombers went so deep into our southern population centers." Aberdeen's latitude is about 50 miles below the southern tip of Norway where close to two million Norwegians live and work in Norway’s major cities.

Russian Air Force spokesman Col. Alexander Drobyshevsky said British and Norwegian planes approaching bombers on training flights were a "normal occurrence. That the Western powers should get used to a world where Russia is taking a more open approach to it’s position as ‘THE’ world’s leader. "

A spokesman for Britain's Royal Air Force said he had no immediate response on the air space incursions. British media has repeatedly reported that RAF planes have been scrambled to stop incoming Russian bombers, this as recently as Tuesday.

What is sobering is there only has to be one slip by the British RAF or Norwegian Air Defense. The advancement of Russian military power in the last 5 years means with only two Russian Tu-95 heavy bombers they have enough Nuclear warheads to wipe out every major cities in both countries. One must keep in mind that the Russians have over 250 Russian Tu-95 heavy bombers. This is not counting their medium range bomber, their mobile Ballistic missiles, their nuclear equipped submarine fleet, their surface Naval fleet which is reported to possesses more nuclear warheads then the Russian army has in it’s entire arsenal, and what you have is a recipe for disaster. Should Vladimir Putin at any time wish to end Western interference in Russian affairs he could do so with very little effort or losses.

Ratcheting up tensions between the West and Russia Britain on Monday ordered four diplomats to leave as punishment for Russia's refusal to extradite the man named by Britain as the chief suspect in last year's killing in London of ex-Russian security officer-turned-Kremlin critic Alexander Litvinenko.