Economy Rebounds Before Election, Treasuries Show.

Graph from MW Hodges showing how the US government has used our Social Security overpayments as our national FOREX reserves to fund deficit spending. Note how the accumulated use of this reserve nearly exactly mirrors the growth of the Chinese FOREX reserves: $1.7 trillion. This isn't accidental, it is yet another way we can see how dynamics work. This transfer of our wealth has been via the trade deficits. Japan's surpluses are part of this picture, too. The squandering of our own reserves while our two top trade partners see an equal growth in their own reserves is a classic balancing act. One feeds the other. The US didn't need to do this. All we had to do was live within our means and to use our own Social Security fund as a FOREX reserve. In other words, that money should have been parked at the Federal Reserve's FOREX fund. Then we would have more control over the value of the dollar and could have used these funds to buy Japanese and Chinese currencies and thus force them upwards in value. Forcing them to trade with us using their currencies would have helped our own nation to prevent the gross trade imbalance with both Asian nations.