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      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, you can do so at the following address: 1NytDNA14UcYsvzX5DHhzowGCqNou […]
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    • Yellen Proclaims It’s Different This Time – Ep. 309
      Expected Rate Hike Today the Federal Reserve did exactly what everybody expected them to do, they once again raised interest rates by just one quarter of one percent.  This is the third rate hike of the year; this is the fourth rate hike since Donald Trump was elected President and the fifth time the Fed […] The post Yellen Proclaims It’s Different This Time […]
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      Bitcoin Week I’m going to devote today’s podcast to bitcoin; I might as well just talk about bitcoin because that’s all anybody else is talking about.  On CNBC that’s pretty much all they are talking about; they said it is “BitCoin Week”.  It sure sounds like it.  I think they should just rename the network: Crypto […] The post CNBC Becomes Crypto News BitCo […]
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      A Nonfarm Payroll Beat Today the labor department released the November jobs report –  Nonfarm Payroll –  of course Wall Street always highly anticipates this number; all the politicians, Donald Trump was ready to tweet as soon as the data was released.  The expectation was for 190,000 jobs and we beat, with 228,000 jobs. An […] The post Trump Continues What […]
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      By: Peter Schiff, President and CEO Euro Pacific Capital After supposedly chomping on the bit for years to pass meaningful tax reform, Republicans are now set to blow an historic opportunity. Whatever version of the Bill that emerges from the House and Senate Conference Committee (which will be signed by President Trump faster than he can […] The post Fake T […]
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      Trade Deficit Moving Higher as Economy Slows Down Yesterday we got the release of the October monthly Trade Deficit and we got a trade deficit of $48.7 billion dollars.  That was a little bit North of the $47.4 billion expected in the consensus forecast.  In fact, the prior month, which was $43.5 billion was revised upwards to […] The post Another Trump Flip […]

The Debt Ceiling Charade

Last week Congress passed a debt ceiling deal that allows the US to borrow even more money.  This bill increases the debt ceiling limit by $400 billion and gives the president the option to raise it again by $500 billion in the next several months.  Additionally, a $1.2 trillion debt ceiling increase will be available after a “super committee” figures out a way to make that many cuts between Thanksgiving and Christmas of this year.  In the end, it seemed like no groups on the left or right really liked this deal, and only felt like they needed to pass it in order to meet the August 2nd deadline enacted by Obama so he could get back to campaigning for his re-election.  Many members of the House also wanted were eager to be done with it so they could go on vacation.  Sadly, a majority of Americans who wanted no debt ceiling increase were screwed, as well as those who wanted a balanced budget.

To put things into perspective, our debt is now 100% of our GDP, which is roughly $16 trillion.  In addition, this deal does nothing to cut our budget or annual debt immediately, but makes vague promises to cut in the future.  It was a completely gutless move by our Congress to ignore the problem now and postpone the tough decisions until the future.  In other words, it was politics as usual.  Despite the deal, S&P still downgraded America’s sovereign debt rating from AAA to AA+, another gutless move that came completely after the fact, just like their rating of mortgage backed securities during the housing crisis.  The markets are still scared by the uncertainty that Washington is causing, and this was reflected by the 500 point stock market drop last Thursday.

Despite the debt ceiling charade going on in Washington, the real concern for American citizens should be inflation and the Fed.  Conveniently, the Fed’s been without scrutiny during this whole debate, despite some disturbing information that was released by an audit sponsored by Bernie Sanders’ financial bill last year.  While the Democrats and Republicans fight over what amounts to straws, the audit revealed that the Fed has loaned out $16 trillion dollars to domestic and foreign banks the past three years.  This amount of money printed is equal to our national debt from the founding of our country up to the present day.  All of this was done without Congressional approval or oversight, at the expense of the American taxpayer whose currency is being devalued as a result.  While the mainstream media gawks at the numbers proposed in the debt ceiling bill and the Democrats claim the tea party proposals are “satan sandwiches,” the Fed is printing money like it’s going out of style and no one is giving a damn about it.  The fact that we might have defaulted on our payments shouldn’t worry people.  What should worry people is the mountain of paper dollar bills being printed, which will ultimately make it harder to afford basic necessities.  We can’t claim we have avoided a default crisis when we’re about to enter a dollar crisis of epic proportions.  Once no one is willing to finance our debt and our interests payment shoot up past the $1 trillion per year mark, then a true crisis will be at hand instead of this phony debt ceiling crisis.  At that point we’ll only have a few options left on the table, cut spending drastically or continue to print until we inflate our debts away.  Based on this current debacle, I think we all know what the answer will be.  Crank the printing presses!

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