• 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

    • Free Talk Live 2015-09-03
      County Clerk sent to jail for refusing to give Marriage Licenses :: Teen charged as an adult for possessing nude pics of himself :: Trump wants to ban flag burnin' :: PornHub.com offers scholarship :: Trump signs GOP loyalty oath :: HOSTS - Darryl, Johnson and Mark
    • Free Talk Live 2015-09-02
      Working Ages :: Tipping at Buffets :: Best Tip Stories :: Strange Customers :: Bitcoin Tip :: Silver Tip :: Factory Farming :: Capitalism :: Voting and Violence :: Media :: Robber Shot by Old Man, Govt Takes his Gun :: Unlocking Cell Phones and Govt Regulation :: Dave Message Board :: Eating Metal Screws :: How does someone treat servers? :: Sex with Robots […]
    • Free Talk Live 2015-09-01
      Jesus a Socialist? :: Libertarian Argument :: What is wealth? :: Sheriffs Targeting Muslims? :: Dave in NY is Sorry :: Save Wifi :: Jesus an Anarchist? :: Kissing Your Kids on the Lips :: Faces on Coins :: Government's Money? :: Virginia TV Shooting Conspiracy Theory :: FCC Nearly Giving Up on Enforcing Pirate Radio? :: HOSTS - Ian, Conan, Mark
  • RSS Break the Matrix

    • Gun Control Is Obsolete
      Every time another mass shooting occurs, we’re greeted with a renewed push for gun control. Each time, those of us who fight for our right to keep and bear arms must go back into defensive mode, feverishly working to derail whatever restrictive and opportunistic bill is making its way through the legislature. It’s a seemingly […] The post Gun Control Is Obso […]
    • College Students in Fargo, North Dakota Set Up a Telescope, Police Threaten to Shoot Them
      On the evening of August 24, 2015, Levi Joraanstad and Colin Waldera decided to set up an approximately 14” inch diameter telescope to, well, look at the sky. Not that one needs a reason to set up a telescope in the United States. The North Dakota State University students were on private property that they […] The post College Students in Fargo, North Dakot […]
    • Editorial: Boston Police Commissioner William Evans Whines-How Dare You Try and Catch Us Doing Bad Things!
      In an interview with the Boston Herald, Boston Police Commissioner William B. Evans engages in Orwellian double talk that would make any Oceania official proud. Evans starts out by stating that all Boston Police are trained that the public has the right to film police officers. He then segues into saying that people should not […] The post Editorial: Boston […]
  • RSS Schiff Radio

    • Video Blog: September 4, 2015
      Did August Jobs Ready Fed for Sept. Rate Hike? Earlier today we released the most important Non-Farm Payroll report ever, at least according to the media A WSJ article stated that this report could “seal the deal” on rate hikes Interest rates have been at zero for 7 years as the Fed contemplated lift-off It […] The post Video Blog: September 4, 2015 appeared […]
    • Meet QT; QE’s Evil Twin
      By: Peter Schiff, President and CEO Euro Pacific Capital There is a growing sense across the financial spectrum that the world is about to turn some type of economic page. Unfortunately no one in the mainstream is too sure what the last chapter was about, and fewer still have any clue as to what the […] The post Meet QT; QE’s Evil Twin appeared first on Schi […]
    • Fed Casts Extras In Its Rate Hike Show
      The Dow just finished its worst month in over 4 years A lot has happened in the market since I recorded my last podcast When I recorded that podcast, I had anticipated a “Turnaround Tuesday” where the market would gap up, but then sell off by the close That is exactly what happened Then the […] The post Fed Casts Extras In Its Rate Hike Show appeared first o […]
    • Will the Fed Rescue the Stock Market? – Ep. 105
      It wasn’t a Black Monday of the 1987 variety, but it was one for the record books The Dow was down opened downjust over 1,000 points – the biggest intra-day point drop ever When the market opened down that low, bargain hunters came in for a spectacular rally Bringing the Dow almost back into positive […] The post Will the Fed Rescue the Stock Market? – Ep. 1 […]
    • The Fed Is Spooking the Markets – Not China
      By: Peter Schiff, President and CEO of Euro Pacific Capital Fasten your seat belts, this ride is getting interesting. Last week the Dow Jones Industrial Average was down more than 1,000 points, notching its worst weekly performance in four years. The sell-off took the Dow Jones down more than 10% from its peak valuations, thereby […] The post The Fed Is Spoo […]

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.

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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 29 other followers

%d bloggers like this: