Thursday, August 4, 2011

Russian PM Putin calls the American economy "Parasitic": How is this incorrect?



Can someone please tell me how Putin is incorrect on any of this? As a person who is an American who lives off of American money in a foreign country, I truly feel the ill effects of the US not keeping its shit house in order. Every time I buy anything here in Bulgaria, everyday it becomes more and more expensive due to the decline of our currency.

To put this into perspective for you, I was in Switzerland almost last summer. During this time I was there, 95Cents US could get you 1 Swiss Franc. Which was favorable. Now, because of the decline of the US currency and irresponsible Federal Reserve policies, if I were to go back to Geneve today, it would cost me $1.30 to buy 1 Swiss Franc. This means the dollar is worth one third less than it did only one fucking year ago!

Russia currently own $120 billion in US treasuries. This is a lot of money for Russia considering this is 3.37 Trillion Rubles. With the decline of the currency and the low interest rates on treasuries, Russia is actually losing money at this rate. Plus, with The Federal Reserve considering further easing of the money supply (printing more money and making treasury purchases), the treasuries that Russia and other countries own, will be worth less than they paid for them.

Right now, yields on short term treasuries are negative. Meaning it actually cost money to own short term US Treasuries. This is because of the awful interest rate and the downward decline of the currency.

This is why I think the statement of calling the US economy parasitic is VERY CORRECT, because of these long standing lies about the US and its economic practices. Such as, the lie that the US has a triple A credit rating (When it actually should not because debt to GDP is over 100% yet there has been no real measures to curb deficit spending. No other triple A rated country has as high of a debt to GDP ratio as America.). The second terrible lie is the phony rule stating that if one is looking for stability, US Treasuries are among the surest of things. This is false and the negative yields on short term US Treasuries in indicative of this.

These lies are parasitically spread by American propagandist who want to keep other nations lending so America can keep on living way above its means.

Sorry, but Russia is owed money. Like anyone who is owed money or has made a substantial investment, they demand a return! Let's say YOU owned some shares in a company. Let's say this company has been losing a lot of money and your shares are worth a lot less than you bought them for. Wouldn't you also be at the share holders meeting telling the company to get there shit together? Yes, you and everyone else would be doing this. No one wants to lose money. So how can you blame Putin?!

And do not even think for a second what I am saying is anti-American. I am so proud of being American and I am VERY NATIONALISTIC! However, I am a realist, who knows that American economic policy in its current state, is completely asinine and just plain backwards! Can we please get back to our old economic glory by not borrowing trillions which puts us at the mercy of shit hole nations like Russia and China?!

Also on a side note, Fox News lost some of my respect from this piece! Instead of making a rational argument they pull immature crap by showing a shirtless picture of Putin with his horse trying to make him look bad. Who gives a shit about the fact he has a horse and does not have a perfect body? This is the same immature crap liberal news outlets perpetrate towards conservatives because they have nothing to argue against something that is completely true. How sickening and childish that they would stoop to these levels!