The United States Corporation

“I pledge allegiance to the flag of the United States Corporation …”

What? Yes, I understand that it’s supposed to read “America” but, in light of Congress’ approval of the Wall Street Bail-Out Plan (known officially as the Emergency Economic Stabilization Act), I think this new wording is more appropriate.

I have warned over and over of the consequences of selling off the assets of America to finance the trade deficit. With ownership comes control. Now we see, too late, what that really means. For many years, as budget deficits and the national debt mounted, we complained that we needed to elect national leaders with business experience, so that our country would be run more like a business, thinking that meant that it would be run with some semblance of fiscal responsibility.

So, if we didn’t have business leaders to choose from, we elected their proxies – politicians who espoused the “ideals” of big business, free markets and capitalism. The end result has been that our nation is now run exactly like a corporation – one that responds to the will of its shareholders. Fiscal responsiblity? Hah! Our nation is now managed exactly like an investment banking corporation – like Lehman Brothers or Merrill Lynch – where the cost of reckless mismanagement is simply funded by selling more shares to foreign investors.

The United States Corporation was once an employee-owned company, when U.S. treasuries were sold primarily to U.S. citizens. But all that changed with the signing of GATT (the Global Agreement on Tariffs and Trade) in 1947, ushering in the age of “free” trade. The only way to finance the resulting trade deficit was to sell “stock” (government bonds and corporate stocks and bonds) to “outsiders” – foreign investors. Now those foreign investors have a majority stake. What this means is that despite overwhelming opposition by Americans, our elected officials do the bidding of our foreign owners and prop up the value of their shares with American taxpayer money, like a corporation cutting salaries to enhance profits. Sure it angers the employees, but who cares? What can they do about it? Nothing.

You may think that, with the power of the ballot box, we can vote these traitors out of office. It won’t make a bit of difference. It’s like voting for new directors of a corporation. They will still do the bidding of the shareholders. So, pony up taxpayers. The shareholders want more of your money. Don’t like it? Go find someplace else to work.

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6 Responses to The United States Corporation

  1. Chase Morgan says:

    BAIL OUT, OR – BARBARIANS AT THE GATE?

    In the midst of the unsettled financial markets there’s been general agreement about one thing: the outcome of the current crisis will be far-reaching changes to the blobal financial system. For example, Morgan Stanley chief economist Stephen Roach believes the world’s central banks are now being forced to look afresh at how financial bubbles should be handled. Up to now their attitude has been that the markets must correct financial bubbles themselves.

    However, the massive emergence of various kinds of derivative instruments created such huge inverted pyramids above an underlying asset class (such as prime mortgages) that things get out of hand when bubbles burst. Roach believes that central banks can hardly afford to condone bubbles in the future.

    The question to be answered is: How and when they must take steps to avoid meltdowns?
    Fin Week

    As some of Wall Street’s most venerable financial institutions teeter on the brink of self-destruction and are either taken over – in the case of Bear Sterns – or, as in the case of Lehman Brothers, allowed to implode, very few financial sectors appear capable of weathering the storms.

    In view of the “bail out” agreement reached this past weekend it seems as if financial markets throughout the world will however react positively to this announcement. An announcement in my opinion not made by choice, however rather by force! Financial Guru – Warren Buffet correctly remarked that if the “bail out” plan was not approved – the American Economy would face certain “meltdown”!

    In lieu of this it stands to reason that there weren’t much alternatives than to see the bail out plan pass through congress? A certain relief for most – al be it temporary. Both Presidential Candidates voted for the plan as has been seen. Not much of a choice by the looks and sounds of it!

    Certainly the pressing question on our minds should be to now take a calm and responsible view back, on what has caused this catastrophy? We should all agree that it is a catastrophy, although suspended perhaps for the moment. One can only call it “suspended” as this has still to play out and we will see how this effects the struggling markets and economy alltogether in the short, medium and long term!

    IS THERE ANOTHER 700 BILLION US$ available should this not work?

    One cannot help but wonder after pondering on all of this for months on end – who is the biggest terrorist or threat facing America after all? Is it Osama Bin Laden – or worse, is it someone or something, much closer to home? I certainly don’t want to be in the shoes of the current President and wonder if anybody in his right mind would like to be in the future President’s shoes!

    However, fill the shoe we have to, and it is now up to every single one of us to realise that the problems facing America is far greater than we want to believe. Republican, Democrat or Independant all stood together, cried together and worked together when the tragedy of 911 struck!

    The tragedy of September 2008 is far worse!

    We don’t have the liberty of taking on the world at present! No matter how righteous our beliefs are, no matter how convinced we are that terrosism should be fought in every corner, every nook and cranny, and in any place in the world. More Americans have died in this war than in 911 and we are not calling it a tragedy or catastrophy? No, we accept it because we are dying for our country, our beliefs and our ego!

    Senator McCain says that he will not see to it that we pull out of this war before victory! He knows how it feels to come home defeated and to live to the consequences of knowing that a lot of people, or so he believes – has died in vain!

    Are we staying at war because we don’t want to feel bad? Are we loosing our children because of ego’s?
    Or worse, are we staying at war to loose our country and our very excistence?

    WE ARE FACING A POSSIBLE MELTDOWN!

    IS THIS A BAIL OUT – OR ARE THE BARBARIANS KNOCKING AT THE GATE?

    Undoubtedly the bail out is necessary, could it have been avoided – too late to ask! Can it be avoided in the future – we have no alternative but to believe it can! The question is how?

    Now, we can tighten up the budgets on every field of the economy, we can harness in every corporate company to be more dilligent in their dealings. We can increase or decrease taxes, impose new legislation, fire the wrong doers or restructure government to be more lean and mean.

    All of this is however in vain, if we are still going to remain a “country at war”!

    It’s simple economics people! The war is killing America! It costs us a hell of a lot more than it costs Osama Bin Laden and Company to fight this! Perhaps he is a lot more astute than we will give him credit for! Perhaps he has gone into hiding, knowing that sooner or later – the “meltdown” will begin!

    Sure we need to keep face in the world! Are we doing this now?

    I don’ think so!

    It is my opinion that if we wan’t to weather the greatest economic storm ever to hit our shores, we need to act and act now, before it’s to late! Our leader, Republic or Democrat will have to realise that we can’t stay at war and build our economy up again – it’s childish to even contemplate that.

    If the world believes we are doing the right thing fighting terrorism offshore, then the world should climb in and help finance this war much more than they are currently doing! If not – we need to pack up and go home before it is too late!

    No other country in the world other than America is facing a “meltdown”? Why should we?

    I know there is a lot more to it than a normal citizen like you and me know about this alltogether. However, it is time we harness our strength as ONE NATION and forget about politics for now. We need to think about America – all of us!

    The “Barbarians are at our Gate”, not in Irak or Pakistan!

    Join me in my blog: http://chasemorgan.wordpress.com

    GOD BLESS US ALL!

    Chase Morgan

  2. Chase Morgan says:

    R700 Billion Dollar Bail Out Fails!

    Well there we have it, the first round to getting the “bail out” plan to be passed has officially failed! Although the markets, the top news agencies, chief economists and the likes of Warren Buffet have predicted that America has no choice but to accept the proposal – it has failed!

    Even I am surprised to say the least, as I am sure most of you are too! After reading comments such as – PASS THE PLAN OR FACE ECONOMIC MELTDOWN – it has done just that! The plan has been failed in congress.

    The question certainly on everybody’s mind now is, are they mad, are they trying to ruin the country, or are they once again simply playing politics instead of thinking about America first?

    The question is who is to blame again? Someone is going to blame someone else and Republicans are going to blame Democrats and vice versa. As the news breaks on CNN the latest statistics show that the total votes for the plan were 205 and against were 228! Democrats for the plan = 140, against = 95. Republicans for the plan = 65, against = 133.

    Does this matter who was for and who was against – NO IT DOESN’T! Who brought the plan to the table in the first place – YES GUESS WHO?

    The fact is it did not pass and we can now either FIX THE BLAME, or for once Congress can sit down and START FIXING THE PROBLEM – NOW!

    The fact that people are already blaming each other for delivering a bad speach – I am referring to the Republican comments on Nancy Pelosi’s speach, is abolutely BULLSHIT!

    COME ON AMERICA – we are grown ups, not bloody kids! Who are these people? A plan of this nature is certainly based on “documented facts”, “written drafts” and NOT ON SOMEBODY’S BLOODY SPEACH!

    AMERICA IS IN TROUBLE – GRAVE TROUBLE, yet we still accommodate leaders who are voicing their political emotions and how they feel about the other!

    WHAT ABOUT US YOU FOOLS?

    What about the people in the middle class who are fighting to survive day by day, and simply don’t have the luxury of waiting for you boys to finish your party games and your power fits??

    Please read my post on BARBARIANS AT THE GATE and you will relaise excatly what I mean! We have more enemies of ignorance in our midst than all the terrorists in this world put together!

    WORK THIS OUT – AND DO IT NOW!

    Visit my blogg at: http://chasemorgan.wordpress.com

    Regards

    Chase Morgan

  3. nextgen08 says:

    Wow! Great article. I’ve been thinking about the dangers of selling treasury bonds to foreigners for awhile now, and you just summed up my fears. I hope we have another boom so that we can buy back all this debt, but those usually only come around once a generation. Without a boom to right our ship, I feel we are doomed to have our standard of living artificially lowered for a generation, at least. Thanks again for a great article.

    Jerame Clough
    -Next Gen Politics

  4. Pete Murphy says:

    Chase, the only way to stop this melt-down is by eliminating the trade deficit. After years and years of trade deficits exceeding $700 billion per year – a cumulative $9 trillion since 1975, the year of our last trade surplus – it’s no wonder that our economy is collapsing. I’ve been predicting this for years. Frankly, I’d love to be president right now. Within four years our trade would be balanced (by immediately imposing tariffs and ratcheting them up year by year) and we’d soon be experiencing an economic explosion. Just imagine what pumping $700 billion per year back into the economy, not with a one-time plan but year in and year out, would do! That’s exactly what eliminating the trade deficit would do!

  5. Pete Murphy says:

    Thanks, Jerame. Again, the only way we can “buy back all this debt” is by reversing the process that created it in the first place. That means running a trade surplus instead of a deficit. I know I’m starting to sound like a one-trick pony, but that’s how critical this trade issue is. At some point our leaders have to come to their senses.

  6. [...] the past, I’ve warned of a sinister consequence of this sell-off. (See “The United States Corporation.”) With ownership comes control. As an ever-greater percentage of America falls under foreign [...]

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