Borrowing Paves the Way Toward Servitude
by JBS President John F. McManus
Chapter 22, Verse 7, of Holy Scripture’s Book of Proverbs tells us what our nation can expect because of heavy indebtedness and consequent borrowing. It says very bluntly, “… the borrower is servant to him that lendeth.”
We can’t be sure that any Russian official has read Holy Scripture. But it is certain that some Russians didn’t need the Good Book to figure out that a borrower puts himself in a subservient position.
In the wake of the Russian occupation of the Crimean Peninsula, officials in Washington issued stern warnings to the Russian government. One key threat stated by President Barack Obama informed Moscow that assets held by Russians in U.S. banks could be frozen if the takeover continued. His warning was supposed to scare Vladimir Putin and various Russian plutocrats into canceling the takeover. But Mr. Obama’s not only didn’t frighten any Russian official, it made some of them angry. The blustering out of Washington had a reverse effect that could imperil the U.S. far more than anything waved in front of Putin and his team. On March 17th, the U.S. President made good on his threat and ordered the freezing of some Russian assets. Russian officials reacted with laughter. Putin is placing his own sanctions on U.S. Senators.
Sergei Glazyev is a top advisor to Putin. On March 4th, according to a report published by the Russian news agency Novosti – and reported in the U.S. by Barron’s – Glazyev showed very clearly his belief that considerable leverage in this confrontation is held by his country, not by the United States. With the blessing of Vladimir Putin, he thundered:
We hold a decent amount of Treasury bonds – more than $200 billion – and if the United States dares to freeze accounts of Russian businesses and citizens, we can no longer view America as a reliable partner. We will encourage everybody to dump U.S. Treasury bonds, get rid of dollars as an unreliable currency, and leave the U.S. market.
Japan and China each hold far more U.S. Treasury bonds than does Russia. Looking at the amounts realistically, Russia’s $200 billion is almost pocket change compared to what these two Asian governments possess. Should the U.S. offend either of them, or should they follow the course laid out by Glazyev, or should either or both simply decide to pull the plug on the dollar, one or the other could dump their holdings and cause the dollar to resemble the worthless Zimbabwean currency of only a few years ago. According to Glazyev, Japan and China may indeed be prodded by Russia to do so.
Right now, the admitted U.S. national debt stands at approximately $17.5 trillion dollars. Much of it has been “serviced” by foreign purchases of U.S. bonds. Another large portion has resulted from the Federal Reserve creation of dollars out of thin air, new dollars to cover domestic deficits and to bail out shaky banks both here and overseas. Yet, deficit spending continues and the sacrosanct “independence” of the Fed remains unaudited and uncontrolled.
U.S. leaders have placed our country’s neck in a noose. Instead of working to extricate America from its predicament, a merry march toward insolvency and loss of sovereignty continues as if there will always be a lender. Congress recently passed legislation to allow the national debt to rise and, while at it, members didn’t even place a ceiling on how high it could go. Blame for this outrage should be directed at Republican leaders and most Democrats who arranged also to keep government debt much less of an issue during the 2014 election cycle.
Will American awaken in time to keep our country free of servitude to its lenders? Only God Himself knows for sure, but we can all be certain that what was stated in His Book of Proverbs can’t be denied.