February 9, 2014
Why We Shouldn't Raise The Debt Ceiling
On February 27, Democrats and Republicans have to come to an agreement to raise the debt ceiling. But, both sides are wrong, and lying.
February 9, 2014
In Washington, the Democrats and Republicans are back to their usual arguments in the world of political theater. As of February 27, 2014; if the United States does not raise the debt ceiling, it will 'default' on it's debts. However, realistically the United States has been insolvent for a few decades.
When the United States went completely off of the Gold Standard under President Nixon, it was essentially telling countries who stored gold in the US; "sorry you won't be getting back your gold."
Recently, we have witnessed that very situation, when Germany asked the United States for some of it's gold back. The Federal Reserve told Germany it could not audit it's own Gold Reserves, and it would take until 2020 to ship all of it back to Germany. --- Now, why is that?
The answer is insolvency. The United States had to go off of the Gold Standard in 1971 due to the fact we we're broke. The dollar, was now a fiat currency which could be endlessly printed out of thin air to continue the debt crisis, which was the only way the Fed could continue the ponzi scheme. But now, more than 40 years later; the bubble of bubbles is ready to burst.
Debt Ceiling Increases
Depending on who is doing the research, it is said that the US has raised its debt ceiling (in some form or other) at least 90 times in the 20th century.
Congress has raised the debt ceiling 14 times from 2001-2013. The debt ceiling was raised a total of 7 times during President Bush's eight year term and it has been raised 7 times (as of 10/2013) under President Obama's term as of 2013 (five years in office).
Of course, the raising debt ceiling predates the Nixon administration's final nail in the gold coffin, but when you understand the fact that since World War II, the United States held the majority of the worlds gold, you can see a correlation from the increasing need to raise the debt ceiling since the dollar was no longer backed by gold.
So why are Democrats and Republicans so worried about raising the debt ceiling? Well, because we will default!
No politician wants to be in office when this happens, because what will ensue is an unraveling of the ponzi scheme which will lead to the bond market crashing, and likely the end of government handouts being sent to those who otherwise would receive them. --- But, is this REALLY a bad thing?
Why We Need To Default
When you listen to these professional economists, they will tell you we need to keep interest rates at 0%, and inflation is good. The same people will also scream and yell about the need to raise the debt ceiling. But how is it that they are not seeing the connection between the two? That is, the fact that interest rates HAVE to remain at 0%, or the entire system goes belly up to begin with. See, you can't have -% interest rates, so therefore 0% is the highest that can be allowed.
Since the Fed has instituted QE infinity, anyone who understands even basic economics can look and see that the more money you print out of thin air, and the longer it is printed, the worse the disaster will be when you go bust. Yet, even with these facts, the Fed and the Congress just seem to ignore it.
The reason we should default now, rather than later, is described by people like Peter Schiff. Schiff, accurately predicted the DOT.com bubble, and the financial crisis of 2008 --- to the T.
The Fed and congress really did nothing to fix the problems that caused the two bubbles mentioned. In fact, all they really did was postpone the NEXT bubble, which is the Treasury Bond bubble. Now that the United States is looking at another debt limit increase, at a time when the Fed is pumping $85 B a month into the system, the catastrophe that lies ahead lurks in the not-so-distant future.
The fact is, one way or the other the United States can no longer "pay it's bills," and the idea to acquire even more debt when you've gone broke is ludicrous. Surely, many people will suffer if the debt ceiling is not raised and we default, however as Schiff says, "it will be MUCH worse if we continue to postpone the default." If we fix the problems in the next, even more disastrous recession, it will be followed by a period of pain. However, if the government once again tricks everyone into believing the debt ceiling is being raised "for our own good," it will make the dollar crash inevitable, and the situation worse 10-fold.
We are at the point of no return, and in fact have been here for quite some time. There is no way out, and it is always better to "turn yourself in," before more crime is committed. After all, the crime of the Federal Reserve would hopefully be fixed faster once we get honest and just default, versus more Quantitative Easing that will only bankrupt our country further, leaving only a slim chance of even having a United States of America.
Yes, it is that bad.
Andrew Pontbriand is an Activist, Researcher, Contributor at Activist Post, and Writer/Editor of The Resistance Journals. Like his Facebook Page here, and follow him on Twitter - @ResistJourn25