Debt & Deficits

All of the crap about the debt ceiling is really about plausible deniability, delivered as propaganda. Threaten deflation and austerity to make a big scene, and force the people to demand the debt ceiling be raised. This is all part of the “show deflation” at critical times when they want to print more aggressively with no blow back.

America was once the world’s model democracy. Now it’s a global laughingstock with a government that can’t keep the lights on and is threatening to renege on its debts. How did this happen?

Going over the debt ceiling would mean the US government legally can’t pay its bills and would default on the national debt. This would be catastrophic in ways that would make Lehman Bros look like a walk in the park.

The price of gold, on a quarterly basis, is 86% correlated - yes, 86%! - to total government debt going back to 1975... and a shocking 98% over the past 15 years!. Despite the current rumblings, everyone is aware that the debt ceiling will be raised and will likely surpass $20 trillion by the end of President Obama’s term. That would put the price of gold at about $2,000 per ounce.

Is the debt issue phony? It sure sounds like a lot, doesn't it? $17 trillion in federal government debt. Wow. It's a big, scary number, no doubt about it, ...and it's a lot bigger than in years past, but is it really that bad? Could it be that our debt profile has been grossly exaggerated? I think so. Let me explain why I think that is the case.

Q: Don't laugh at me, but what is a deficit? A: It's actually not a dumb question. Here's why.

The Ponzi bubble is bigger than most can imagine. Western central planners... [continue to try to] suppress gold and silver in order to keep their sorry lives alive. In the process, the destruction of people’s financial well- being is unabated...

The trade deficit has improved a lot since 2010 and the U.S. dollar strengthened with it but I believe that is all about to change. Here's why.

It’s been exactly two years since Standard & Poor’s did the unthinkable and downgraded the U.S. government’s debt rating...and yet, it’s as if it never happened…

At this point, thanks to a long-standing policy of wanton money printing, the Fed has more liabilities than ever before in its history - by an enormous margin - and this precarious balance sheet is dangerous, because if the Fed goes bust, everyone loses [- including YOU. Let me explain why that is the case]. Words: 398