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Just a few months ago in early August, President Obama and Congress worked on a deal to cut spending or raise revenues enough to substantiate raising the debt ceiling.
That was after they ALREADY kicked the can down the road from an earlier “deadline” in April.
The difference of course is that the August deadline was supposed to be the final deadline. Congressional leadership on both sides of the aisle seemed resolute that they’d come to some kind of agreement – and they HAD to of course, because the Government was running out of money.
Without a deficit ceiling raise, they’d eventually be unable to even afford the interest on their Treasury debt.
The question wasn’t “will they raise the debt ceiling or won’t they?”
The real question was – and remains, “what happens to the dollar when they inevitably raise the debt ceiling?”
You and I know the answer: higher prices for everyone who holds dollars.
As I wrote back in July: “Printing dollars to solve the world’s problems doesn’t really solve them. It just moves them to another side of the ledger.
And if you hold dollars, you are the other side of the ledger. The Federal Reserve incrementally steals the value of your dollar holdings every time it bails out some bankrupt institution.”
So… what happened?
They raised the debt ceiling. That much we know. They also yelled a lot and make a general ruckus about “doing something” though it was pretty clear from the get-go that no one in Congress had the ability or the will to do anything.
And that’s where we are today. They got their cake. Now they’re eating it. They’re free to spend just as they were before on a variety of programs, projects and pet-causes.
And by the time the REAL ramifications of their debt ceiling raise come into the picture, many of these Congressmen will be out of office.
We’ll still be here. We will still own dollars.
The point is: don’t be fooled by Congress or the President. Any interests or beliefs that they appear to share with you are entirely incidental and ultimately unimportant in comparison to how they serve their own needs.
And for bureaucrats and politicians, the primary need is to expand and diversify the power and authority of government.
Don’t place your faith in these cretins or anything they promise. Put your faith in yourself, your family, your god, your own business and livelihood – and of course, the real assets you can immediately lay claim to – like gold, property and other forms of physical wealth.
You’ll need these people and things all the more as our treacherous government continues down the path of certain insolvency.
The Bond Story You Haven’t Heard
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