The US: Technically a Banana Republic without the Bananas

When one considers the total of US debts (which includes those of the individual states and municipalities plus unfunded liabilities less private household or corporate debt), the amount owed as a ratio to GDP exceeds a factor of 5x.


Outside of the privileged status of the United States being the country of origin of a fiat money which also serves as the global reserve currency, its status has deteriorated in nightmarish fashion since 1970. Then the world's largest creditor nation now owes more than all other nations combined to US taxpayers and foreign banking groups. 


What is happening to Greece today has more to do with global banking politics than sound financial economics; anyone who tells you otherwise is a crackpot. But make no mistake, the IMF will soon be taking over the US central bank if current trends do not reverse immediately. The recent "debt ceiling relief" compromise deal is but a tiny step in the right direction but DOES NOTHING to address the most pressing concerns of the US: it is descending to the status of a second-rate has-been nation, and doing so VERY quickly. 


Wikipedia® defines a Banana Republic as a politically unstable country dependent upon limited primary productions (e.g. bananas), and ruled by a small, self-elected, wealthy, corrupt politico-economic plutocracy or oligarchy.


Watch the video below to learn more. Be careful to weave through the narrative rhetoric (i.e. bullshit) of CNBC reporter Maria Bartiromo and focus on the guest speaker, David Walker. He is the former head of the Government Accountability Office and Comptroller General of the United States.


PM