• RSS Ludwig Von Mises Institute of Austrian Economics

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Republican Liberty Caucus

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Freedom Watch

  • RSS Free Talk Live

    • FTL Digest 2018-06-23
      Free Talk Live's Daily Digests feature highlights from our full-length seven-day-a-week live radio show, selected and edited by Riley Blake. Enjoying the digests? Please donate $5-10 per month to Riley via this link: https://www.patreon.com/crblake86 If you want to donate via Bitcoin Core (BTC), you can do so at the following address: 1NytDNA14UcYsvzX5D […]
    • Free Talk Live 2018-06-24
      NFL players tell Trump who he should pardon :: Robots to build satellites in space? :: Space travel :: Government schools :: Virgin Galactic to go to space in "just months"? :: Space travel and pollution :: Asgardia :: Colleges banning smoking :: Global warming :: Senate fails to pass bill cutting 0.08% of federal budget :: HOSTS - Darryl, Chris
    • Free Talk Live 2018-06-23
      Internal Border Patrol Checkpoints :: Narcan and Drug War :: Zoning and Property Taxes :: Admitting Employing Undocumented Workers :: Private Prisons vs Free Market :: Mark's Immigration Proposal :: Immigrant Children and Welfare :: Clog the Courts :: Border Patrol vs Forkfesters :: ACLU of NH Rebukes Checkpoints :: Class Oppression in Mexico :: Stand U […]
  • RSS Break the Matrix

    • An error has occurred; the feed is probably down. Try again later.
  • RSS Schiff Radio

    • Most Banks Would Fail Stagflation Stress Test – Ep. 365
      Stagflation Nobody realized just how bad the economy is, but they’re about to find out.  All of the economic data that came out this week points to stagflation, if you look at the data.  Look at the Philly Fed – dropped down to 19.  It is the biggest drop in 4 years; the lowest since […] The post Most Banks Would Fail Stagflation Stress Test – Ep. 365 appear […]
    • A Trade War Won’t Be Good for the Dollar
      By: Peter Schiff, President and CEO Euro Pacific Capital On Wall Street, it’s best not to think too hard or to look too closely into the mouths of gift horses. Since making predictions based on actual economic understanding is rare, analysts typically look to provide explanations after the fact. Within the financial services industry, currency traders […] Th […]
    • The Force Will Not Be with Us – Ep. 364
      Upping the Ante The shot heard around the world in the ever-escalating trade war was fired last night by Donald Trump, threatening to impose another $200 billion of tariffs on American consumers wishing to buy Chinese goods. This followed the $50 billion in tariffs.  And, remember, when Trump announced the first $50 billion tax on […] The post The Force Will […]
    • Dovish ECB Roils Markets – Ep. 363
      ECB Announces Dovish Tightening The big market-moving central bank announcement this week was not the Fed.  They came out with their so-called “hawkish hike”, but yesterday, the ECB came out and they were supposed to announce the end of their Quantitative Easing program, their own version of the taper, which they did.  But they surprised […] The post Dovish […]
    • Fed’s Inflation Victory Is a Loss for Consumers – Ep. 362
      Fed Raises Rates for the 7th Time The Federal Reserve raised interest rates today.  I think this is the 7th rate hike. Six of these rate hikes have now taken place since Donald Trump was elected; five of them since he was inaugurated. The official rate now is 1.75% to 2%.  The Federal Reserve targets […] The post Fed’s Inflation Victory Is a Loss for Consume […]
  • Advertisements

The US Debt Ceiling? What a joke!

Pretty soon Congress will once again have to consider raising the debt ceiling.  Every year this comes up for a vote, and every year it passes.  This year, with pressure from the Tea Party, some Congressman are seriously considering standing up and voting no on this to not allow the US to borrow any more.  However, whenever any politicians begin questioning the system, there will be immediately backlash in the the form of an overblown fear campaign.  If our government defaults on our debt, many have claimed that this will plunge the country into an even greater depression.  Our senior citizens will be thrown out on the streets.  Our military will go on strike.  Cthulhu will invade our realm and rule in a wave of terror.  But what’s even worse: the SHAME!  The great super power of the world admitting it’s bankrupt?   Now that just can’t happen!  We’re better than those crappy European nations like Greece, Ireland, and Portugal right?  All sarcasm aside, one might wonder why we even have a debt limit at all if it’s going to screw us over so badly?  Well, the answer will be shocking to those few who aren’t already cynics, or those that think $14.3 trillion isn’t really that much money.

Historically speaking, the debt ceiling was created during WWI to ease public fears of government spending.  Since then, it’s been raised every year without much objections, which makes a mockery of the whole notion of a ceiling in the first place.  Like most government propaganda, it’s meant to dupe people into feeling like there are actual limits to our government power, when in reality it’s all a charade.

People who think it would be a terrible thing defaulting on our debt are forgetting that we already are essentially bankrupt.  If you are a company that brings in $2 trillion and spends $3.6 trillion, you aren’t going to be in the market for very long.  Sadly, our government is this terrible company, yet it can never go out of business because it has one thing that no one else has: a printing press (granted, there are those out there that also have these, but they are labelled “counterfeiters”).  By the Fed initiating QE1 and QE2, it’s pretty much a given that no one in the free market wants to buy our debt, thus the Fed has been stepping in to create artificial demand and enabling our government to keep spending as much as it wants.  In essence we are already defaulting on our debt by trying to inflate it away, and this is much more dishonest as it delays our day of reckoning and hurts more people through rising prices.  By defaulting on our debt now, the dollar would immediately be shot down and our economy would suffer in the short term, but it would be the honest way of going about our business and we’d be able to recover much more quickly than prolonging it as long as we can through inflation.  Our creditors would have to take a haircut and most likely never lend to us for a long time, but at least they’d pull off the US leech that’s been giving them inflated paper for their consumer goods.  Global economies would have to adjust once they see the demand for their products suddenly drop due to a lack of US purchasing power.  But in many emerging markets, such as China, once they let their currency increase in value and stop shipping so many products out of country, they’ll have over 1 billion Chinese consumers who could easily fill that void.  Thus, the world would quickly recover, and if the US government gets out of the way then we could recover quickly as well.

Once we lose the status of having the world’s reserve currency, we’re going to be forced to go back to the basics and live within our means.  If we can’t afford to have goods shipped to us, we’re going to have to start producing them once again and rebuild our manufacturing base.  Hopefully by then people will realize the Federal Reserve was the enabler to our government’s addiction to debt and abolish it.  By flushing away our central bank, gold and silver (and other commodity monies) will once again reign supreme as the only honest currency.  People will be able to save without fear of inflation wiping out their wealth, and true capital can be built for businesses.  With a healthy free market, our country can once again experience an exponential increase in living standards as goods become cheaper and more plentiful, technology improves in all areas, unemployment goes to virtually zero, and the country gets richer as a whole.  This all may sound like a libertarian, free market utopia, but it’s entirely possible once we can kick off the giant monkey on our country’s back that’s the government and its addiction to spending.  Defaulting on our debt may be the crisis that turns this country around and makes us rethink our political philosophy.  If people see how much damage government has done and how much the unhinged free market can thrive, they’ll realize how much potential our country has to become the world’s greatest nation once again.  By embracing freedom and rejecting the statism that got us into this mess, we can return to the roots that founded this country and made us the beacon of liberty that set us apart from the rest of the world.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: