King of the Hill

We have talked in the past about how the nations play a giant game of King of the Hill.

I believe we are all familiar with the rules of the game...because any kid who ever played outside on a snowdrift would have played it. The main rule to remember is that all players who ARE NOT on the top of the hill rush from all sides with the main goal of knocking off the one player who is on top.

Ex Treasury Secratary Hank Paulson, just came out with a book...and in it he describes that Russia was trying to convince China to dump it's Fannie and Freddie bonds in an attempt to knock the U.S. off the top of the financial hill.

Wow!!....that's kind of unsettling to realize that we almost collapsed in 2008...and if China would have taken Russia's advice....today we could be using Special Drawing Rights (issued by the IMF) to buy our groceries at Cub...because the U.S. dollar would be worthless??

While attending the 2008 Beijing Olympics, Former Secretary of the Treasury Henry Paulson learned that Russia was encouraging China to dump its Fannie Mae and Freddie Mac bonds in an effort to force another U.S. bailout. In his memoir, “On the Brink”, Paulson writes, “The report was deeply troubling -- heavy selling could create a sudden loss of confidence in the GSEs and shake the capital markets… I waited till I was back home and in a secure environment to inform the president.” (Bloomberg.com)

And now Obama's budget comes out...and we are going to fall even deeper into the hands of foreign investors....because we will be forced to borrow another $2 trillion....this year!!

As President Obama presented his proposed budget this week, Maya MacGuineas, President of the Committee for a Responsible Federal Budget, cautioned against undervaluing foreign assessment of U.S. financial security. "And yes, we know it is an election year, but we cannot continue to delay - foreign credit markets are really not interested in our partisan in-fighting - they are interested in whether the U.S. will remain a safe place to invest." President Obama's budget does not send the message that we are serious about fiscal responsibility and protecting America's future to international investors or to Americans struggling with their own budgets.

But hey...what about Obama's high speed train proposal?? You mean the foreign investors aren't impressed with that idea?? Wait a second!!....have you seen Michelle Obama's arms??? Come on people....get on the charisma train.....loan us some more money!!! We DESERVE IT!!! WE ARE AMERICA!!!