How much of the US does China own?

China owns around 1.3 trillion dollars of the United States’ debt, but recently Chinese nationals have been heavily investing in different sectors of US economy. So, how much of the US does China own?

As Forbes reported, “China’s Vice President Xi Jinping has at least one good sales pitch to offer Americans during his five day stay; to rebuild old infrastructure.” And talk about outsourcing. At a sprawling manufacturing complex, hundreds of Chinese laborers built the San Francisco-Oakland Bay Bridge.

By Investment Watch Blog –

Senator Rand Paul Excites CPAC Crowds For Liberty

Kentucky Sen. Rand Paul enjoyed one of CPAC’s most enthusiastic responses when he took the stage Friday to share his vision for the nation.

“Will you lovers of liberty rise to the occasion?” he asked, rousing the first wave of supportive applause from his audience.

“When politicians accept censorship,” he continued, “when politicians accept imprisonment without trial, when politicians support torture even of the innocent, then lovers of liberty must rise.”

He cited the willingness of America’s founders to stand up to a tyrannical king to establish God-given rights and liberty.

“Our freedom is at risk from a Supreme Court that fails to protect liberty,” he said. “Just as we are presumed innocent, we should be presumed free.”

Paul offered a few steps toward restoring our national freedom, beginning with the repeal of Obamacare and other policies he described as antithetical to America’s founding principles. Even fighting a global war on terror, he said, is not sufficient cause to limit the liberty of Americans….

“We must protect ourselves from jihadists without losing who we are in the process,” he said.

Our freedoms are being further threatened by our national debt, he said.

In the end, preserving individual liberty was the common theme of Paul’s address.

“We must remember our rights are unlimited, unenumerated, and given to us by God,” he said. “Don’t let anyone tell you otherwise. Your rights are in your DNA and the government can quite frankly get over it.”

His message obviously resonated with a large swath of the audience as many engaged in a chant of “President Paul! President Paul!”

By B. Christopher Agee — Western Journalism –

Student Debt Strike is Finally Happening!

The “Corinthian 15” have fired the opening salvo in a nationwide movement to strike student debt.

A group of courageous students, caught in the cruelest of debt traps, has decided they are done waiting for relief that will never come. Enough is enough. Today, the Corinthian 15 are going on debt strike.

Scammed from first to last by one of America’s most unscrupulous for-profit colleges and denied a rightful debt discharge by the Department of Education, they are saying “We Owe You Nothing.” In a gesture of solidarity with the strikers, the Rolling Jubilee has announced that it has erased more than $13 million of student debt owed by students of Everest College, a subsidiary of Corinthian….

Although the Corinthian 15 are fighting against some of the worst creditors in our predatory system, they are taking a stand for everyone who finds themselves saddled with decades of education debt. For-profits are only the most exploitative part of America’s debt-financed higher education system–public and private universities are little better. While the crushing burden of debt affects most students, those with the least resources are paying the highest price….

Student loan debt has tripled over the last decade, turning higher education into a pathway to poverty for all but the well-heeled. Everyone knows that huge chunks of U.S. student debt–more than $1.3 trillion and growing–cannot and never will be repaid. But, though nearly half of outstanding student debt is effectively in default or other forms of nonpayment, default on an individual basis is not leading to change; it is only causing misery, depression, and worse. Joining together to refuse repayment publicly and collectively is the only way to end the injustice of debt-financed education. The Corinthian 15 are the first to stand up and take collective action.

A strike is typically a last resort, when all other alternatives are exhausted. The Corinthian 15 certainly see it that way. State attorneys general, like California’s Kamala Harris, legislators, like Elizabeth Warren and Maxine Waters, and even government agencies, like the Consumer Financial Protection Bureau, have all tried to secure justice for them. But the Department of Education has not listened. Instead of protecting the students, it has bailed out the college’s investors, acting like a debt collector for a predatory lender. The Corinthian 15 have concluded they have no other alternative….

From StrikeDebt.org –

National Debt to Hit $19.1 Trillion Under Obama

The Congressional Budget Office is predicting that the national debt will rise by a bit more than half a trillion dollars for the next two years, which will leave the nation with a $19.1 trillion debt by the time President Barack Obama leaves office.

That would be close to a doubling of the debt under Obama — the total national debt was $10.6 trillion when he took office in 2009, and now sits at nearly $18.1 trillion.

CBO released its latest budget and economic outlook on Monday, which also predicts that the annual budget deficit will be relatively steady through 2018….

Through 2018, the budget deficit will remain at around $500 to $600 billion a year, or about 2.5 percent of the gross domestic product of the United States. After 2018, however, the budget deficit will rise past 3 percent of GDP, and then hit 4 percent of GDP by 2025.

By 2025, those accumulated annual budget deficits will bring total national debt to an estimated $27.3 trillion without any changes to the law.

Obama has boasted about the shrinking of the budget deficit from the more than $1 trillion seen in the first four years of his presidency. But even with that reduction, budget deficits under Obama are on track to stay higher than the highest deficit seen under President George W. Bush.

CBO’s assumptions are based on relatively rosy scenarios that would be easily upended by another economic downturn. For example, CBO predicts 2.9 percent growth in 2015 and 2016, followed by 2.5 percent growth in 2017. It predicts an average of 2.1 percent growth from 2018-2019 and 2020-2025….

By 2025, CBO expects federal revenues to jump $2 trillion from their 2014 levels, and that the government will take in $5 trillion that year.

In terms of spending, CBO thinks the government will be spending $6.1 trillion per year in 2025, or $2.6 trillion more than it spent in 2014….

CBO estimates that by 2016, total debt held by the public will be $13.9 trillion, which implies intragovernmental holdings of about $5.2 trillion. Debt held by the public in 2025 will hit $21.6 trillion, according to CBO.

By Pete Kasperowicz – The Blaze –

Bankers Are Telling Us What Will Happen Next

Are we on the verge of a major worldwide economic downturn? Well, if recent warnings from prominent bankers all over the world are to be believed, that may be precisely what we are facing in the months ahead. As you will read about below, the big banks are warning that the price of oil could soon drop as low as 20 dollars a barrel, that a Greek exit from the eurozone could push the EUR/USD down to 0.90, and that the global economy could shrink by more than 2 trillion dollars in 2015. Most of the time, very few people ever actually read the things that the big banks write for their clients. But in recent months, a lot of these bankers are issuing such ominous warnings that you would think that they have started to write for The Economic Collapse Blog. Of course we have seen this happen before. Just before the financial crisis of 2008, a lot of people at the big banks started to get spooked, and now we are beginning to see an atmosphere of fear spread on Wall Street once again. Nobody is quite sure what is going to happen next, but an increasing number of experts are starting to agree that it won’t be good.

Let’s start with oil. Over the past couple of weeks, we have seen a nice rally for the price of oil. It has bounced back into the low 50s, which is still a catastrophically low level, but it has many hoping for a rebound to a range that will be healthy for the global economy.

Unfortunately, many of the experts at the big banks are now anticipating that the exact opposite will happen instead. For example, Citibank says that we could see the price of oil go as low as 20 dollars this year…

The recent rally in crude prices looks more like a head-fake than a sustainable turning point — The drop in US rig count, continuing cuts in upstream capex, the reading of technical charts, and investor short position-covering sustained the end-January 8.1% jump in Brent and 5.8% jump in WTI into the first week of February.

Short-term market factors are more bearish, pointing to more price pressure for the next couple of months and beyond — Not only is the market oversupplied, but the consequent inventory build looks likely to continue toward storage tank tops. As on-land storage fills and covers the carry of the monthly spreads at ~$0.75/bbl, the forward curve has to steepen to accommodate a monthly carry closer to $1.20, putting downward pressure on prompt prices. As floating storage reaches its limits, there should be downward price pressure to shut in production.

The oil market should bottom sometime between the end of Q1 and beginning of Q2 at a significantly lower price level in the $40 range — after which markets should start to balance, first with an end to inventory builds and later on with a period of sustained inventory draws. It’s impossible to call a bottom point, which could, as a result of oversupply and the economics of storage, fall well below $40 a barrel for WTI, perhaps as low as the $20 range for a while.

Even though rigs are shutting down at a pace that we have not seen since the last recession, overall global supply still significantly exceeds overall global demand. Barclays analyst Michael Cohen recently told CNBC that at this point the total amount of excess supply is still in the neighborhood of a million barrels per day…

“What we saw in the last couple weeks is rig count falling pretty precipitously by about 80 or 90 rigs per week, but we think there are more important things to be focused on and that rig count doesn’t tell the whole story.”

He expects to see some weakness going into….

In the end, a lot of these energy companies are going to go belly up if the price of oil does not rise significantly this year. And any financial institutions that are exposed to the debt of these companies or to energy derivatives will likely be in a great deal of distress as well.

Meanwhile, the overall global economy continues to slow down.

On Monday, we learned that the Baltic Dry Index has dropped to the lowest level ever. Not even during the darkest depths of the last recession did it drop this low.

And there are some at the big banks that are warning that this might just be the beginning. For instance, David Kostin of Goldman Sachs is projecting that sales growth for S&P 500 companies will be zero percent for all of 2015…

“Consensus now forecasts 0% S&P 500 sales growth in 2015 following a 5% cut in revenue forecasts since October. Low oil prices along with FX headwinds and pension charges have weighed on 4Q EPS results and expectations for 2015.”

Others are even more pessimistic than that. According to Bank of America, the global economy will actually shrink by 2.3 trillion dollars in 2015.

One thing that could greatly accelerate our economic problems is the crisis in Greece. If there is no compromise and a new Greek debt deal is not reached, there is a very real possibility that Greece could leave the eurozone.

If Greece does leave the eurozone, the continued existence of the monetary union will be thrown into doubt and the euro will utterly collapse.

Of course I am not the only one saying these things. Analysts at Morgan Stanley….

By Michael Snyder – The Economic Collapse –

250 Bible Verses About Money

Here are 250 Bible verses for financial advice. Topics include acquisition of wealth, budgeting, business, contentment, debt, ethics, giving, greed, investing, lending, and more.

Proverbs 6:6-8
Go to the ant, sluggard; consider her ways and be wise; who having no guide, overseer, or ruler, provides her food in the summer and gathers her food in the harvest.

Proverbs 21:5
The thoughts of the diligent tend only to plenty; but the thoughts of everyone who is hasty only to poverty.

Proverbs 22:3
A prudent one foresees the evil and hides himself, but the simple pass on and are punished.

Proverbs 24:3-4
Through wisdom a house is built, and by understanding it is established; and by knowledge the rooms shall be filled with all precious and pleasant riches.

From Christian Personal Finance –

27 Facts Show How Middle Class Has Fared Under Obama

During his State of the Union speech on Tuesday evening, Barack Obama is going to promise to make life better for middle class families. Of course he has also promised to do this during all of his other State of the Union addresses, but apparently he still believes that there are people out there that are buying what he is selling. Each January, he gets up there and tells us how the economy is “turning around” and to believe that much brighter days are right around the corner. And yet things just continue to get even worse for the middle class. The numbers that you are about to see will not be included in Obama’s State of the Union speech. They don’t fit the “narrative” that Obama is trying to sell to the American people. But all of these statistics are accurate. They paint a picture of a middle class that is dying. Yes, the decline of the U.S. middle class is a phenomenon that has been playing out for decades. But without a doubt, our troubles have accelerated during the Obama years. When it comes to economics, he is completely and utterly clueless, and the policies that he has implemented are eating away at the foundations of our economy like a cancer. The following are 27 facts that show how the middle class has fared under 6 years of Barack Obama…

#1 American families in the middle 20 percent of the income scale now earn less money than they did on the day when Barack Obama first entered the White House.

#2 American families in the middle 20 percent of the income scale have a lower net worth than they did on the day when Barack Obama first entered the White House.

#3 According to a Washington Post article published just a few days ago, more than 50 percent of the children in U.S. public schools now come from low income homes. This is the first time that this has happened in at least 50 years.

#4 According to a Census Bureau report that was recently released, 65 percent of all children in the United States are living in a home that receives some form of aid from the federal government.

#5 In 2008, the total number of business closures exceeded the total number of businesses being created for the first time ever, and that has continued to happen every single year since then.

By Michael Snyder – The Economic Collapse –

New Law Would Make Taxpayers Liable For Trillions In Bank Derivatives Debt

If the quadrillion dollar derivatives bubble implodes, who should be stuck with the bill? Well, if the “too big to fail” banks have their way it will be you and I.

Right now, lobbyists for the big Wall Street banks are pushing really hard to include an extremely insidious provision in a bill that would keep the federal government funded past the upcoming December 11th deadline. This provision would allow these big banks to trade derivatives through subsidiaries that are federally insured by the FDIC.

What this would mean is that the big banks would be able to continue their incredibly reckless derivatives trading without having to worry about the downside. If they win on their bets, the big banks would keep all of the profits. If they lose on their bets, the federal government would come in and bail them out using taxpayer money. In other words, it would essentially be a “heads I win, tails you lose” proposition.

Just imagine the following scenario. I go to Las Vegas and I place a million dollar bet on who will win the Super Bowl this year. If I am correct, I keep all of the winnings. If I lose, federal law requires you to bail me out and give me the million dollars that I just lost.

Does that sound fair?

Of course not! In fact, it is utter insanity. But through their influence in Congress, this is exactly what the big Wall Street banks are attempting to pull off. And according to the Huffington Post, there is a very good chance that this provision will be in the final bill that will soon be voted on….

By Michael Snyder – Activist Post –

Obama’s Blueprint for the Destruction of America: The Decimation of Military Leadership

Since even before Obama assumed the Presidency, his mere presence in the 2008 election was an affront to every member of Congress that has Presidential aspirations. The foreign born and disbarred Barack Obama, who never held a real job in his life, and did not even serve one full term as a senator, was a slap in the face of our political system and all of those with much more experience were passed over for a “community activist”.

As I have pointed out in Part Three of this series, Obama was not even vetted as a Presidential candidate by the FBI as required by law. Not since J. Edgar Hoover was complicit in the assassination of JFK, have we seen the FBI so manipulated and compromised in terms of validating Obama’s candidacy.

The day that Barack Hussein Obama took the oath of office, in January of 2009, was the day that the sun set on America. I never thought the country would ever see a President as corrupt, immoral and incompetent as Woodrow Wilson. After all, in 1913, Wilson worked towards eliminating tariffs, the American government’s mainstay of economic support since the country’s inception.Wilson, on behalf the globalists, replaced tariffs with the corrupt and unconstitutional income tax and of course the Federal Reserve which has eroded the dollar to a net value of 3 cents of worth today. Wilson lied us into World War I, he jailed legitimate protesters and he helped make it possible to usher in the direct election of senators which handed over the Senate to the globalists. Wilson even tried to sacrifice the nation’s sovereignty by handing over our nation’s political authority to the League of Nations which was the globalist’s first attempt at world governance and he would have succeeded had it not been for the Ron Paul of his day, Henry Cabot Lodge. I never thought that there could be anybody worse for the country than Woodrow Wilson, until now. Obama is the most treasonous and destructive force to ever occupy the White House.

Just how destructive is Obama? Is he just incompetent? I have said it before and I will say it again, Obama, like Wilson, he is following a systematic plan. Wilson’s agenda was relatively tame compared to Obama’s. It was Wilson’s mission to hand off the control America to the banksters and economically enslave the nation in debt. Obama’s mission is much more nefarious as his objective is clearly based upon the goal of the total destruction of the United States as we have known it. The following paragraphs will provide a mere snapshot of….

By Dave Hodges – The Common Sense Show –