Liberals and progressives have been saying this over and over again, especially since the days of President Theodore Roosevelt, Wall Street banks own our country. Many Americans probably believe that China was the largest debt holder for America, but according to the United States Treasury Department, that’s wrong.
According to the US Treasury, China’s U.S. debt holdings only account for 9.5% of the entire U.S. national debt outstanding. The largest bond holder of US Treasuries are US individuals and institutions. Now most of us have received United States Savings bonds for birthdays etc., but not to the amount of 1.8 TRILLION dollars (1,820,000,000,000).
Individuals and institutions make up 42.1% of U.S debt holdings add in the Social Security Fund and the total increases by another17.9% to 60%. Sixty per cent of our national debt is held domestically.
That number represents an awful lot of financial control over our government. The rich are financing our country. These banks are sitting on trillions of dollars. The concentration of wealth by these banks and the ultra wealthy has created a feudal system of government that conservatives believe is called economic freedom.
The problem was created by Ronald Reagan who EXPLODED the national debt to 1.7 TRILLION dollars. In 1981 Reagan intentionally decreased taxes on these banking institutions and the wealthy, but didn’t curb the spending in order to bring it in balance. It’s called the two Santa Clause theory.
Democrats had been able to be “Santa Clauses” by giving people things from the largesse of the federal government. Republicans discovered that they could do that, too – spending could actually increase. Plus, Republicans took it to a new level by figuring out that they could be double Santa Clauses by cutting people’s taxes!
For working people it would only be a small break – a few hundred dollars a year on average – but the conservatives would push it hard and market the idea. For the rich it would amount to hundreds of billions of dollars in tax cuts. There was no way as Jude Wanniski, the person who originated the idea of the “two Santa Clause Theory” said, that the Democrats could ever win an election again. They’d have to be anti-Santas by raising taxes, or anti-Santas by cutting spending. Either one would lose them elections.
Now, due to this conservative free-bird attitude toward unproven economic theories, we are laying off teachers, firemen, and police officers while giving massive tax breaks to the wealthiest individuals and corporations in our country.
So the conservatives handed TRILLIONS of dollars of our debt, 42% of it, to the “masters of the universe” on Wall Street, Wall Street bought our debt with the tax cuts Reagan and the rest of the conservatives gave them. Then we add in the bailout and Wall Street takes our money, buys our debt, gains 3% on interest in treasury notes and re-pays the government with the very interest we gave them for buying our debt in the first place.
It adds up to giving them even more leverage in our elections.
The average person and community business will continue to have no voice, unless we start electing people who are willing to stand up against these big institutions as President Theodore Roosevelt a century ago.
Now that we know we have leverage on China, they only hold a small percentage of our debt. We can tell them to stop manipulated their currency and let’s also threaten to start imposing tariffs on goods from imported from them. Everyone knows that need a level playing field, but the conservative want to flatten our wages in order to get there.
Americans cannot compete with $2 a day labor and I’m not willing to allow our politicians to force us there through free trade agreements.
Let’s hope 2012 will bring real liberals, who have been telling the truth all along, to the Senate and take this country back from the banking institutions and the politicians that have enabled them.