Monday, 4 July 2011

4th Of July - Dependence Day

There was a sighting of an increasing rare species in Central London yesterday. It was American’s of working age who were on vacation. Apparently all those out of work in the USA cannot afford to travel whereas those who do work cannot afford to take a vacation.

Today, in London in Grosvenor Square, once one of the demonstration grounds, now a sealed off security zone and before both a green place where the most expensive of London’s old street walkers were to be found, a large statue of President Ronald Reagan was unveiled. Now he really does stand ten foot tall.

Over on Stateside on Independence Day my family there are catching up on their rapidly rising bills, mending an ageing car and doing overtime at home on their paid employment.

Perhaps it is time to amend the name of this day given the situation faced by the Federal Government and almost all the States of the Union, their counties and local councils.

Today, 4th July 2011 should be Dependence Day when thought is given to how the government of America threw away the progress and prosperity created by the fifteen generations before the present one.
Skipping a long and gruesome explanation of all the troubles that now afflict the Union, who does America now depend on?

The Chinese are one group, between their holdings of American debt and being key suppliers of many consumer goods as well as controlling much of the present supply of rare earths, when China sneezes, America catches flu’.

The suppliers of oil whether other states or the large companies who drill for it, refine it and carry it to the American consumer for whom cheap fuel is an absolute necessity for survival and lifestyle.

The holders of American dollars in cash world wide which is the currency of much incidental trade and most of the illegal drugs, drink and counterfeit trading. The sums are vast and amount to huge free loans to the American government.

It is one reason why America has intervened in Columbia and Afghanistan to protect the dealers they can depend on from the others. It is why money laundering has become a key source of financial income in both London and New York.

At one time America used to support certain ruling elites from its own sources of wealth. But the number of these has increased and so have their expectations. America is trying to hang on but now has to borrow large sums to manage it.

Once the Federal Government regulated the banks and finance houses who depended on it for security, status and directions in policy. Then “The Gipper” let them off the leash. He had already come to depend on the industrial and military complex that President Eisenhower had feared.

The Bush family ran with them and the Clinton’s bought the banks and funds idea that the way to equality and diversity was lending large scale in property and consumer goods to the poor who were never going to be able to pay off the debts and therefore provided a major income stream of interest, charges and penalties to the finance houses who lent the money and backed the Clinton’s, the Bush family and later Obama.

This gets more and more complicated but the upshot is now the banks and finance houses provide personal financial security to the Senators and Congressmen who take their advice about policy, decisions and the rest from them.

President Obama is still wondering about what to do but with a Presidential and other elections impending he needs to have good advice and feels fortunate to be able to depend on the banks and finance houses to provide it.

The remaining major American companies were once proud to be American with much of their ownership in the hands of American shareholders and they all depended on the government. These days the “shareholders” are largely funds who are so big and powerful that the American system of government has come to depend on them as well as all the others.

The funds etc. concerned are now “globalised” which means that nobody knows what they do, how they do it, what money they are dealing in and where it is. The world economy now depends on these funds and America is central to the world economy. If the funds have problems then American taxpayer has problems.

Hope you all enjoy the hominy and grits.

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