This War Causes China, Russia And The Rest Of The World To Turn On Us? As I have written about previously, the U.S. government will borrow about 4 trillion dollars this year. Close to a trillion of that is new borrowing, and about three trillion of that is rolling over existing debt. If China and other big foreign lenders quit buying our debt and started dumping what they already hold, that would send yields on U.S. Treasuries absolutely soaring. And we have already seen bond yields rise dramatically in recent weeks. In fact, on Thursday the yield on 10 year U.S. Treasuries briefly broke the 3 percent barrier. So what is going to happen if the yield on 10 year U.S. Treasuries continues to go up? The following are a few consequences of rising bond yields that I have discussed in previous articles... -It will cost the federal government more to borrow money. -It will cost state and local governments more to borrow money. -As bond yields go up, bond values go down. In the end, rising bond yields could end up costing bond investors trillions of dollars. -Rising bond yields will cause mortgage rates to skyrocket. In fact, we are already starting to see this happen. This week the average rate on a 30 year mortgage hit 4.57 percent. -Higher interest rates will mean a slowdown in economic activity at a time when we definitely cannot afford it. -As economic activity slows down, that will be very bad for stocks. When the next great stock market crash happens (and it is coming), equity investors could end up losing trillions of dollars of wealth. -Of course the biggest threat of all is the 441 trillion dollar interest rate derivatives time bomb that is sitting out there. Rapidly rising interest rates could potentially bring down several of our "too big to fail" banks in rapid succession and throw us into the greatest financial crisis the nation has ever seen. Are you starting to get the picture? CONTINUE . . . At present, the global financial system is centered on the U.S. dollar. Countries from around the world keep huge reserves of our currency lying around for the sake of international trade. This reserve currency status that the dollar possesses allows the U.S. to sustain an assertive foreign policy. If the dollar were to cease being the global reserve currency, the U.S. government will be much weaker internationally. In addition, the country will have a much harder time financing our debt, leading an already difficult to manage debt impossible to maintain and collapsing our economy. It is important to note that China is not a capitalist nation. Capitalist nations have thriving open markets and numerous freedoms such as an open internet. The people of China do not have the luxury of capitalism; they have a repressive communist government interested in power. CONTINUE . . . Along with exposing widespread international surveillance, Edward Snowden has revealed how exactly the US is financing its military ambitions, according to Max Keiser. < snip > Max Keiser: The American economy runs on the confidence, confidence that the world accepts the US dollar as world reserve currency, confidence that the US bond market will remain the standard. And what we are seeing is a sell-off in a bond market and a sell-off in the stock market, because confidence in the US and its ability to maintain a global empire through interest rates and the Central Bank policy is crumbling before the world’s very eyes. What’s interesting is that Edward Snowden worked for Booz Allen. Booz Allen allegedly along with a few other companies are the masterminds behind LIBOR market rigging, energy market rigging, FOREX market rigging. And this is really the fuel that keeps the American military empire going, because the American economy itself cannot support its military ambitions so they’ve resorted to market manipulation and the kind of intelligence that Edward Snowden is able to aggregate is key to manipulating markets in ways that make Booz Allen, allegedly, the channel for billions and billions of dollars into America’s military campaigns. And this is really about money, markets and manipulations. It’s not about security. It’s not to do with anything that the White House says. Remember, the White House is a puppet of Wall Street, Booz Allen, the hedge funds and the financial interests of the corrupt bankers. RT: Can you also give us an idea of how some of those big companies like Google, or Facebook could actually benefit from this surveillance program PRISM? Is there financial a financial gain from them? MK: Absolutely, because all of the manipulation involves rigging the indexes. And the indexes are all data-sensitive. So, if you can manipulate the data, you can manipulate the indexes and you manipulate the markets. And if you have advanced knowledge of that inside information you can make billions of dollars of front-running, high-frequency trading, algorithmic trading. And, of course, all the banks on the Wall Street are in on this and all the banks in the UK. It’s very telling that the foreign minister of Ecuador said that, look “you are talking about us extraditing Edward Snowden, what about bringing back those bankers we asked you to bring back to Ecuador who we caught rigging and terrorizing our market?” What about the Icelandic bankers that have been asked by the government of Iceland to be extradited back to Iceland that are being held in the UK? What about these other instances where banking terrorists are being sheltered in the US and the UK? They’re not responding to extradition agreements. So this’s all about financial legerdemain, unfortunately, Americans don’t have enough money to fight their wars anymore so they have to resort to snooping, data-gathering, and market manipulation. View The Video Here.