Don’t Tread On Me
Jan 7, 2011
Let the contrived drama of the debt ceiling begin for the American people.
We are within weeks of hitting the national debt ceiling (soon to be floor) of $14,294,000,000,000.00. There will be great political drama. The media will be breathlessly cover it. The American people chew their finger nails into nubs, waiting to hear their fate. I hate to be the bearer of bad news, (actually it like it ) but the debt ceiling will be raised as we head off the cliff of hyper-inflationary depression.
Here is why it will happen, our monetary system must create more money every year in excess of the debt and interest accrued the previous year.
Let that sink in for a little bit.
For in our system, money is debt.
When debt is created, money is created.
When debt is paid off, money is destroyed.
In order to truly understand this, one must see how money is created. So let’s say the government needs a ridiculous amount of money, say a Trillion dollars, to cover the deficit this year. In order to get this Trillion dollars, the US Treasury goes to the privately owned central bank the Federal Reserve and asks for a Trillion dollars. The Open Market Committee of the Fed says “no problem”, they just want a Trillion dollars in US Treasury Bonds. The Treasury issues a Trillion dollars of debt at 5% for a year. The Fed creates a Trillion dollars out of thin air and credits the Treasury’s account the Trillion dollars. The Treasury spends the money into the economy paying for wars, social security, and groping TSA agents.
If one sees that at the very beginning of our system, before the very first dollar enters the economy, debt MUST be created. What is worse, only the principal is ever created. (In the scenario above, only the Trillion dollars.) But the 5% interest, the $50 billion, does not exist in the entire economy. The ONLY way that interest is paid for is for, more debt/money has to be created in excess of the principal and interest that was accrued the year before.This is why everyone and everything is in debt.
If we were to pay off that Trillion dollar debt, two very bad things would happen. 1. Because money is debt, when the debt is paid off, the money is destroyed. So there would not be a single freaking dollar circulating in the entire economy. 2. Because we paid off the Trillion dollar principal only, we are still in debt the interest on the loan of $50 Billion dollars. So now all we have accomplished is eliminate all the money in the country and we are still freaking in debt up to our eye balls.
If the debt is not created we enter into a deflationary death spiral that both bankers and politicians fear more than God. Bankers fear it because in deflation, debts get defaulted upon and they lose their money. Politicians fear it because less money equals less power. Inflation on the other hand is a blessing for both the banker and the politician. To the banker the more debt/money, the more profit. To the politician the more debt/money, the more power.
So how do I know for certain the debt ceiling is going to be raised?They passed the extension of the Bush Tax cuts. The only way for the government to continue this game is to print more money and that can only be done if they create more debt. The banker and politicians are in on this game. The Fed will act as the Lender of Last Resort and the Government will act as the Spender of Last Resort. This brutal marriage is a recipe for the mathematically inevitable hyper inflationary collapse of the dollar. The collapse will be the result of faster and faster creation of debt/money and the compounding interest will reach it’s hockey stick moment. Once big institutions and countries hear the music stop they will dump their dollars on the world market to get any tangible asset. From that point on you will get the chance to literally wipe your ass with $100 bills. (Mainly because you will not be able to afford toilet paper.)
What is the point of the “DEBT CEILING” if it is always moved?
The point is to fool Americans that there might be a limit to the amount of debt the government can rack up. Even more important than that, as this contrived drama will show, is to fool the American people that there is actual debate in Washington. The reality is that there is NO LIMIT to the amount of debt the government can and will rack up. And there is NO PARTY in Washington that is going to stop this gravy train. It is a false left/right paradigm of no real choice or freedom.
Both sides of the Democrats and Republicans are bought and paid for and they have sold Main St out for Wall St. (Watch Wall St Laughs at Main St.) The contrived drama of the debt ceiling between the Republicans and the Democrats is no different than a WWE wrestling match. Oh there will be smack downs, body slams, and a lot of good name calling but at the end of the day it is ALL FAKE. And the power behind the scenes calls all of the shots, so long as they fool the audience, the American people.
Let me suggest that they just eliminate the debt ceiling and cut to the chase. The collapse of the dollar is 100% mathematically inevitable. When the dollar collapses, it will be by far the single biggest event in the entire human history. Everything will change in every town across the globe. And yet most people have not even begun to think about it, much less prepare for it.
Those that did not see this coming, won’t know what to do when it gets here.
Fortunately for you reading this today, there is the Sons of Liberty Academy.
This article was posted: Friday, January 7, 2011 at 4:28 am