A Memo:
To: All purchasers and holders of U.S. Treasury Bonds with Maturities of Ten Years or More
From: All Americans Less Than 30 years of Age, Including Unborn Americans
Although we are not presently in power and currently have little or no influence in the American political system, the day will come when our generation will control Congress and the White House. We think it only fair to inform you that, when that day arrives,
WE WILL DEFAULT
on the Treasury bonds now being recklessly issued by the U.S. Department of the Treasury in collaboration with the U.S. Federal Reserve Bank. We will control the Congress and the U.S. Presidency, and we will ensure that Congress enacts, and the President signs, legislation that relieves our generation of the enormous debts now being imposed on our generation by the Baby-Boom generation currently in power. You will not get back your principle, and you may be lucky to get the interest as well.
We may be young, but we are not stupid. We may be too busy going to school and starting our careers to become activists, but we are paying attention. We have watched members of the Baby-Boom generation now in power walk away from their debts and homes in droves. We have watched the banking cartel in this country try to shift those debts to future taxpayers, meaning us, to save their own hides by enlisting their personal federal agents at the Federal Reserve Bank and members of Congress bribed with campaign contributions. We have watched the U.S. Treasury Secretary travel around the world trying to reassure foreign investors that our generation will pay back all the debts that his generation incurs, even though our generation is likely to receive scant benefit from the money you have loaned.
We have a message for you.
WE WILL DEFAULT.
We have no intention of becoming slaves to the creditors of the United States. We have no intention of making sure that you get your money back. Like the generation now trying to saddle us with almost immeasurable debts, we intend to watch out for our own self-interest. That self-interest does not include paying higher and higher taxes to pay the interest and principle on debts owed to foreign governments and wealthy foreign investors.
WE WILL DEFAULT.
Just so you know we mean business, allow us to demonstrate that we know exactly what is going on.
WE KNOW:
That the current economic crisis was caused by federal policies that encouraged massive amounts of borrowing and financial leverage in both the public and private sectors.
That the federal government exercised virtually no regulatory control over the banking/financial services industry in order to encourage the borrowing and leveraged financial activity, so as to enjoy the benefits that come from pulling future income into the present economy.
That the banking/financial services industry gleefully accepted its role in carrying out these federal policies and made massive amounts of money, much of it paid in the form of executive bonuses.
That the banking/financial services industry borrowed short term from the Federal Reserve Bank and then made increasingly risky long-term loans with that money, to the point that large numbers of loans, e.g., subprime home loans, were under-secured, and even fraudulent.
That all this money caused a bubble in housing prices that could last only as long as there were buyers willing and able to pay higher and higher prices with loans. In the end, many borrowers, e.g., subprimes, were paying these prices with loans that far-exceeded their actual ability to pay.
That this bubble collapsed, adversely affecting unregulated securities also created by the banking/financial services industry, thus beginning a process of deleveraging that continues to this day.
That the banking/financial services industry, having pocketed all the profits from its previous excesses, is now trying to shift its liabilities to our generation through bailouts funded by the sale of U.S. Treasury Bonds.
That the purchasers of these U.S. Treasury Bonds are often foreign governments and sovereign wealth funds.
That our generation is on the verge of becoming slaves to these foreign governments and sovereign wealth funds, courtesy of the current U.S. Congress and the U.S. Federal Reserve Bank.
Foreign Governments and Sovereign Wealth Funds, you are hereby on notice:
WE WILL DEFAULT.
There is nothing we can do to keep the current generation from issuing more and more debt and attempting to enslave us. They are addicted to debt, they do not listen to us, and they apparently hold little regard for our future well-being if it means giving up the lifestyle that debt made possible for them. We have yet to acquire the political influence to stop them. But that will change.
We apologize for our parents’ excesses, but consider yourselves forewarned. Just because our parents were stupid does not mean that we will follow their example.
WE WILL DEFAULT.
Sincerely,
Nate Lake
PS
The only thing I plan on paying off are my student loans.
