SafeBondsDuring the Great War (1914-1918) the U.S. Government pressured ordinary Americans into buying government Liberty Bonds ($25 billion) to fund the Allies’ war of choice. The government did not repay the bonds to the people as promised. Instead the bonds were rolled into new securities. When the people were finally repaid, in the 1930’s, it was not with gold, as had been promised, but with devalued dollars, wiping out many households — thus the Great Depression.

In 1910 the U.S. National Debt was $1.26 billion (6.8% of GNP), by 1919 it had grown to $25.49 billion, and by 1947, $258.29  billion. A good portion of the debt came from the government loaning (Liberty Bond money) to war combatants who then bought war supplies from the U.S. but didn’t repay the original loans. In his War Memoirs, David Lloyd George recounts exporting $600,000,000 worth  of gold to the U.S. prior to America’s April 1917 entry into the war.

“By the time America came into the War, our capacity to produce further securities to sell in the States to pay for our purchases there was approaching the end.” David Lloyd George, War Memoirs (1934)

But the British had something the American Zionists (who got Wilson elected) desperately wanted, and for which Wilson had lobbied Lloyd George, Palestine. On November 2, 1917 the Balfour Declaration was delivered. On November 3, 1917 (as Lloyd George recounts in his Memoirs) the first Americans died on the Western (French) Front.

Today the government of Israel is selling Israeli Bonds for as little as $100 to anyone who wants to buy them. One insider we spoke with said there have been $34 billion sold, including to American pension funds. The government of Israel has debt of over $200 billion with revenues of $68 billion (2011). It doesn’t take a PhD to see trouble ahead for holders of Israeli debt.

In spite of overwhelming evidence to the contrary, the leaders and people of the United States and Israel cling to notion that they are exceptional — possessing moral authority, while making the world safe for democracy.