When America was a King; now a Servant! Part 1

It is true; the old king [America] has become a servant. How could a nation of such power and wealth end up in such a lowly position in world ranking? The answer is quite simple to uncover if a serious attempt is made. Start by understanding that there are four categories that set up the ruling of a nation or country; Academics, Government, Science and Media. These are the pure basic parameters of a society's function, existence and development.

Destroying a prosperous nation without war?
Now the question is how has America settled for its purpose of existence as a servant country to the rest of the world? Here's a hint, political correctness. The best way to strip and destroy any nation of its power and wealth is by implementing guidelines and policies that weaken its populous. A guaranteed way of doing that is by instituting political correctness into a nation's academics, government, science and media. Guaranteed results are a weak, vulnerable and defenseless country.

Who will protect us?
The growing amount of evidence that the U.S. has fallen to a susceptible criteria of vulnerability is being played out daily in our national security. There are too many near misses of security breach that unfolds consistently in our nation on all levels; federal, state, county and municipalities. All of this is due to political correctness running amuck in our academic teachings, government policies, science discoveries and media presentations. Special attention should be focused on our current government monetary policies going forth. The main killer of a prosperous nation is its poor monetary decision making and monetary policies based on political correctness and not on common sense. Just like in your personal financial position, when owing more than what you have, it leaves you in a weak position of bargaining. Such is the case for America.

A King of political correctness must now become Servant!
The fallen king [America] must now become subservient to the new king on the throne, China. The U.S. is so far in debt to China it's not funny. This is real, and like anyone of us who are owed money, we want to be paid. All of the political correct constituents are numb to the notion that the U.S. must pay its debt. The political correct constituents of the current administration really believe that there is nothing to worry about. They consider our global financial position as a simple technical monetary balance between governments. There will come a time when China will call America's note in for payment. Those of you who don't believe that China will demand and fight for its money are fools. The same applies to you in your personal finance, if someone borrows a large amount of money from you and defaults, you have to take action to recover. There is no difference between nations responding to debt owed to them, but in our case we owe China, and whenever we become capable of paying them back, it will be in the form a drastically devalued American dollar. Now the real problem begins. Continued in Part 2

When America was a King; now a Servant! Part 2

The New King will not accept political correct paper money!
An easy comprehension of the old king loosing his power can be assessed by tallying his bank account and safe deposit box. You can write as many promissory notes as you want to, but you had better have some type of monetary substance of bartering available if your notes are called. Growing monetary substitutes are on the rise to replace American paper money. The most common reserve substitute is gold or precious metals which are most beneficial in bartering a debt. The paper money of the U.S. has almost become worthless in the global monetary system. It is true that the world monetary system is still based on the U.S. dollar, but that philosophy of finance has literally shifted away with the awaiting of a new world monetary currency or bartering replacement.

The Old King has no clothes on!
Yes, the old king must be demoted to servant, and that's what transitioning today on this little planet called earth. The old king allowed a vast number of special interest groups to become far too powerful within its government which led to the eventual take over by special interest groups in the academics, government, science and media. Such political maneuvers upon the old king blinded his focus on real world relationships. The result is the old king's unfocused authority has been stripped and taken away and now the old king must become servant to the new king, China. Like it or not we are living in a serious teachable moment of no return to playing with political correct engineering. The damage has been done.

Snap Shot of the New King's bank account!
During the month of October of 2009 China's foreign exchange reserves had grown into large numbers unthinkable. Within a six month stretch during the year China's reserve pile jumped $318bn, which is a sum nearly equal to the annual gross domestic product of Argentina. Now check this out: The additional reserve of $318bn created a grand total of $2,270bn, which is a very nice reserve to have and a reserve the U.S. would drool for. American Ghost Money!Having such an abundance of funds in reserve would seem to be the best answer to any monetary problem that may arise. Unfortunately, China is in a major dilemma with its money reserve. The reason for their dilemma is because two thirds of their reserves are in vulnerable U.S. dollar assets. To add insult to injury, the problem with China holding promissory notes on the U.S. is that the promissory notes are almost worthless and that's a serious problem. This is how wars come about, when a default can not go unchecked. China can not dump the dollar assets because of the decline in the monetary value for the dollar and treasury bonds. China would be the biggest loser in short selling their U.S. dollar assets. Thereby the escalation of world jitters would erupt if China were to call the U.S. on its debt owned.

Fantasies are for Kids!
This is a serious situation and a not fantasy or something that political correctness can blind over on anyone. There are governments, entities and people of other countries and nations that have become much wiser and advanced in using common sense when dealing with their money. They have the power now, and the U.S. must answer to them. Remember, China is the biggest holder of promissory notes on the U.S., but there are many more nations who hold promissory notes on the U.S. as well. Word of caution, when someone wants their money all bets are off the table.