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The state of the union is not good our trade deficit is too large we must not go back to unwise spending this is America your token George Orwell once wrote that the great enemy of clear language is in sincerity when there is a gap between one's real and once declared aims one turns as it were instinctively two long words and exhausted idioms like a cuttlefish spurting out ink you've probably heard confusing phrases like the trade deficit the falling dollar the national debt unfunded liabilities and so on which all sound vague and actuarial and vaguely well not me the reality behind these accounting phrases is perfectly monstrous when someone a foreigner say loans money to the American government what are they getting in return well they are getting promises of interest payments and eventual repayment of the principal where does your government get this money the government is not a business does not generate profits in the free market so where does it get the money to repay its creditors are you beginning to understand that it is not dollars that are being sold or bonds or agency debt or Treasuries or anything like that where is your government going to get the money to pay off its creditors it's not pieces of paper or contracts or computer bits that are being sold there is only one thing that the government has to sell governments have only one asset that they can use as collateral your leaders are selling you when China lends eight hundred billion dollars to your government what they get in return is a guarantee that ten thousand dollars plus interest will be taken from your family at gunpoint and shipped overseas when a farmer gets a loan from a bank he uses his livestock as collateral it is the milk and meat his cows will produce in the future that he will use to pay off his loan the bank is buying a share in his cows you are the livestock that your leaders use as collateral the leaders that you cheer for and throw parades for and drop balloons behind and donate money to are selling you to Chinese rulers to the Japanese to the Nigerians to South American drug lords with accounts in the Caribbean banking centers to Russia to Korea to Egypt to Colombia to Chile to the Philippines to Malaysia and anyone else who is willing to give them a few dollars in return for the blood sweat and toil of your future the flag that you praise and the anthems that you sing and the rulers that you weep and kneel before have as much loyalty to you as a plantation owner head to his slaves and sadly plantation slaves had more pride than we do plantation slaves did not generally praise their masters for selling them off for auctioning off the lives hopes dreams and futures of their own little children we can understand that