We've Just Breached the Debt Ceiling... Next Comes the Default

While Barack Obama is chugging Guinness and Congress is doing... well not much of anything, we've breached the US debt ceiling.

That's correct, the US now has more debt than is legally permitted. We'd crossed the "more debt than is healthy" as well as the "more debt than is sane" levels long ago. However, it wasn't until the last few weeks that we cleared the legal debt limit.

You'd think that the world's largest economy (and home of the world's reserve currency) exceeding its debt limits would be big time news. But we've yet to hear a peep about it from the mainstream financial media.

It's even stranger that we haven't heard mention of the fact that the US is in fact RAIDING pension funds to continue to fund its debt.

That's correct, Tim Geithner, who aside from being a tax dodger has managed to make US Treasuries (formerly the ONLY risk-free investment in the world) so unattractive to foreign investors that he is now using money that was promised to retirees to fund his debt orgy.

Let's think about this for a moment... US Treasuries are so unattractive that investors no longer want to buy them... so we're using money promised to those who worked... to buy them.

Simply staggering.

Aside from being morally wrong, Geithner's moves are the usual "I've got no solutions so I'm just going to come up with something on the fly" nonsense we get from the DC crowd. Even Geithner himself has admitted that his latest scheme will only buy the US about three months' time before we start defaulting on our debt.

That's not a typo... Geithner has publicly stated that barring any sudden changes in the demand for US Treasuries, the US will DEFAULT in August 2011.

In some ways this doesn't matter. The US was going to default soon anyway. The US Federal Reserve is the primary buyer of Treasuries now. And it's simply buying 50+% of all new debt issuance back from Wall Street (usually within a week or two of the debt being issued).

In other words, the entire US debt structure is now a giant Ponzi scheme.

We all know how this ends... with a debt default followed by a US Dollar collapse, followed by hyper-inflation.

Comment:

This is just plain madness. We're on the verge of default, yet the spending goes on, as the band played on as the Titanic sank.

If this is true comrades, were in for some truly terrible times ahead. Yet not only isn't the government doing anything to stop it, they are actually accelerating this.

How can we be ready for this? Financially, there is no way for us. The only possible way is through the ownership of gold, and other precious metals and gems. How much of that do you own? In my case, virtually none.

It is obvious that this has been engineered. Hyper-inflation is coming. But the wealthy own a lot of gold and gems. Do you see it comrades? Everything becomes virtually worthless except gold and gems. Who owns most of that? The wealthy elite do, that's who. The working class is being set up for disaster, while the very people responsible have insured themselves against this economic disaster with gold and gems.

How long will people, especially the White Working class, stand by and let it happen? We The People are the only ones that can stop them. We must unite, and stand against these greedy, selfish pigs who are determined to turn us into economic slaves. NO MORE EXCUSES! LET'S ALL GET OFF OUR BUTTS AND FIGHT THIS!

I don't mean revolution. I mean we must continue to get the word out. Since the Spring Blitz, hits on the website have nearly doubled. GOOD WORK. Also, the 2012 elections will be here before you know it. Consider running for a realistic office like town council, school board, county clerk, water or sanitation commissioner, and similar offices. We must start small and work our way up. But we will never get to the top unless we take that first step. It will be a long hard haul, but we can do it!

"A journey of a thousands miles begins with a single step." - Chinese proverb.

Dan 88!