To understand the current state of America, we must first have at least a layman’s understanding of how credit works. When you are in debt you are not wealthy, you are not powerful and you are not free. You cannot repay your debt when you owe more than your total worth and the interest on your debt builds against you. You are at the mercy of your creditors who have the right to foreclose on you at any time. Eventually, you reach a point when you can no longer pay the mounting interest on your debt and all your remaining assets are liquidated by your creditors. Everything you have then belongs to them.
America has very little to export to the world. Except for food, nearly everything we purchase is imported from other nations. Our most valuable source of income is military hardware. Armament and weapons of warfare are the only commodities of value America has to sell to the world. We have no control where the weapons and armament ends up once it is sold. We try to offset the dangers of having our own weapons used against us by only selling outdated military technology of lesser value.
America’s second most valuable source of income is taxes. Perhaps you are wealthy in America paying only a small percentage of your earnings in taxes. Perhaps you are poor in America paying a majority of your earnings in taxes. Either way, you are not exempt from the consequences of your nation’s debt. And those consequences are staggering. So what are the immediate consequences of being 17 trillion in debt?
You ask why America fights wars for the United Nations and is the primary supporter of food and aid to other nations? By selling outdated weapons and armament to the world and collecting taxes America still cannot cover its operational costs or the mounting interest on its debt. America must now perform certain duties for its creditor nations to continue borrowing. Policing rogue nations and providing its only remaining resources such as food and materials where they are needed are just some of those duties.
We will reach a point when we can no longer conceivably repay our debt. The figure will become so astronomical that foreclosure and liquidation is the only viable option our creditors have. Perhaps we have already crossed this threshold and now only exist as a nation for the purpose of policing rogue nations and supplying foreign aid. But our creditors need not wage a costly war to collect on our debt. They can simply stop lending to us and wait.
We would eventually run out of money to pay for our oil and cover our operational costs. Our own natural resources would be depleted soon after. Without oil America cannot power its war machine and our creditors could simply walk in without a shot fired.
This is worse case scenario and certainly not the inevitable future of America. But we as a people must make the hard choices ourselves or place our nation in dire jeopardy. Investing in American business, products and services remain our strongest tool against debt. Increasing the quality and quantity of our viable exports and relying less on our government for bailouts. Cutting back on spending as a nation and returning to our traditional values of community and self reliance may be the last hope for a nation built on creativity, ingenuity and freedom.