I have been asked how the current debt crisis will affect the average person. The first thing we need to understand is that the Satanic Psychopaths like us to choose our chains. It gives them the additional cover they need to bring about the ultimate destruction of America, Liberty and anything that remotely resembles Patriotism.
They have given us two choices this time:
1. Raise the debt ceiling by a few more trillion dollars.
2. Default on their manufactured debt.
Both choices will result in the destruction of the dollar. If they raise the debt ceiling then they destroy our nations credit standing. Since they control the credit rating agencies anyway, and have held off the inevitable for far to long, this will happen regardless of what they do. Default is the equivalent of not paying your credit card bills, mortgage and car payment. You become an unacceptable credit risk and you are no longer able to borrow money.
The United States of America is the world’s largest creditor nation. We owe more money to more people than any other country on earth. We don’t sign loan applications as a country. Instead, we issue bills, notes and bonds.
Treasury Bills: Bills are short-term debt that will expire within the next 12 months. Your CDs at the bank invest in Treasury-Bills, so do the money market funds. In fact, T-Bills form the basic foundation for most of your savings programs. Default means that these funds will fail, because the U.S. government will not honor the debt, or make any payments to satisfy the principle. It also will destroy the banking, mutual fund and credit card industry.
Treasury Notes: Notes are 10 year obligations that are purchased as an investment by your mutual funds in their bond portfolios. Again, failure to pay this debt will cause the Bond market to literally collapse overnight, wiping whatever retirement, pension and long-term savings plans that invest in them (all of them), right off the books.
Treasury Bonds: Bonds are 20-30 year debt obligations. Mortgages are tied to Treasury Bonds. Mortgage interest rates are also tied to Treasury bonds. If the government defaults, then it would destroy homeowners with variable rate mortgages, or those seeking to purchase a new home. It would also destroy the bond market and mutual funds with a bond portfolio.
This is why default is not an option. At least, not yet. Which leads us to choice number two:
Raising the Debt Ceiling:
This is like an out of control debtor borrowing more money from a loan shark. It will destroy our credit rating and force us to pay higher interest rates on all future bills, notes and bonds. Currently, we just keep refinancing our debt with the Federal Reserve that issued it in the first place. Meanwhile, interest keeps compounding and we find ourselves virtual slaves to the international banksters.
Raising the debt ceiling will also raise interest rates, since we become a greater risk as an investment. Expect bond-rating agencies to trash the U.S. credit rating. The following will result:
1. Higher interest rates will mean that all existing debt will be discounted by investors, you will see dramatic losses in the bond market and those that invest in bonds will suffer accordingly. This will affect 401K plans, pension funds, and other retirement plans.
2. Higher rates also mean that those with credit cards will also watch their payments skyrocket, increasing consumer defaults and killing off what remains of the retail industry.
3. Foreclosures will increase as those with variable rate mortgages will be unable to make their monthly payments.
4. A major stock market correction as companies forced to pay higher interest rates go under, stop making their debt payments and report dramatic losses in earnings.
5. Unemployment will rise.
The eventual outcome is hyper-inflation and economic collapse for either choice. The dollar will be destroyed and with it, the American economy. Silver prices will escalate dramatically and I believe the gold confiscation act will come about through Executive Order, with the promise of stabilizing our nations’ economy through a new gold standard.
Our Constitution speaks in terms of the US debt issue at hand, Article I, Section 8 of the Constitution specifies that the Congress shall have the power “To borrow money on the credit of the United States.”
Then there is the 14th amendment, section 4 which states: “The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”
In other words, this country is not allowed to default. Default is unconstitutional. Default is illegal. Default is a federal crime.
Default Means National Bankruptcy and World Chaos
A default of this kind means nothing less than national bankruptcy. Default is the essence of chaos and anarchy. It is a peril which we have successfully avoided during our entire existence as a nation, through a terrible civil war and the two world wars of the past century.
The United States dollar continues to play the role of the world reserve currency. This means that the central banks on every continent have chosen to maintain large portions of their reserves in the form of US Treasury securities. This role has been slightly diminished in recent years, but it is substantially intact. For the US government to default on payments through the US Treasury would therefore provoke a radical devaluation of the central bank reserves of the entire globe, wiping out some central banks and leaving others critically weakened. This might lead to massive dumping of US Treasury securities, leading to a general world panic to which no asset class would remain immune. We might see a dramatic decline of the dollar. This would represent the disintegration of the current world financial system, and a breakdown crisis of economic activity of unthinkable proportions. This might happen immediately, or it might require months or even years to explode in its full fury. In any case, it would put the United States on the road to national decline.
The “Tea Party Caucus”: Right-wing Anarchists Funded by Malefactors of Great Wealth
Why, many Americans may wonder, should this crisis exist today? Here it is useless to talk in euphemisms in order to appear conciliatory; it is now necessary to call things by their names. As a result of the current world economic and financial depression which began in 2007-2008, the extreme right wing of the Republican Party, now calling itself the Tea Party, has been energized and revitalized. They have also begun to receive large amounts of political funding, including from a sinister individual who is reported to be the richest man in New York City. These are the malefactors of great wealth about whom presidents of both parties have been warning you for over a century. The goal of these opulent backers of the so-called Tea Party is to eliminate taxation and regulation upon themselves and their private business interests, many of which are in direct conflict with the public good. The impact of this Tea Party on public opinion has been magnified out of all proportion by the collusion of corrupt media cartels; in reality, the supporters of the so-called Tea Party do not exceed about 15% of our population.
Out of their despair that their ideological goals could ever be met through the democratic process, these wealthy individuals and their anarchist following have evolved a diabolical strategy. Their strategy is extortion. It is an attempt to place the United States government under duress. It is an attempt to mutilate, alter, and denature our Constitution through unconstitutional means.
It is nothing short of an illegal coup d’etat.
The Tea Party cloaks themselves in public as the greatest admirers of the U.S. Constitution. But in one concrete instance after another, we find that the Tea Party is at war with the Constitution.
The Tea Party Goal is to Bankrupt the United States
The goal of the Tea Party faction of Congress is nothing less than the national bankruptcy of the United States, procured by forcing our default on the contractual and legal obligations of this government. They regard default and bankruptcy as positive goods, and indeed as indispensable steps on the path to the free market utopia they fondly imagine. Their reasoning is that, once the United States has gone bankrupt, it will henceforth be either prohibitively expensive or totally impossible for the Treasury to sell its bonds on the world financial markets. Therefore, payments on Social Security, Medicare, Medicaid, and other programs will have to be cut – not by law, but by the brute force of having no money.
They claim they want predictability to allow businesses to create jobs, yet they court the greatest chaos and instability our nation has ever faced in our financial affairs – insolvency.