Why the Obama Debt Ceiling Is Actually a Glass Ceiling and How You Can Profit From It
Uncle Sam and His Cronies
What do you think of the recent debt ceiling dynamic?
Do you think it solved the budget problems or prolonged them? Do you think it only postponed them to a time in the near future?
Current events in the news address the problem of the debt ceiling and the fiscal cliff in the United States.
This article will explain why the US debt ceiling is in reality only a glass ceiling and how politicians continually find new ways to get around it. The United States is more than $ 17 trillion in debt. This debt load has more than doubled in the past five years under the Obama administration and has steadily been increasing over the past thirty years, with no end to this escalating debt, time bomb in sight. The resulting implications to the economy are obvious. Factory collapses, massive job losses, rising foreclosures, continued bailouts of Wall Street firms, increases in the price of gold, rising inflation and decreased purchasing power, and so forth.
The US Senate is not prepared to completely shutdown the US government but almost virtually everything is closed for business. Recently, a news article mentioned that Social Security checks may soon not be issued, because the government has run out of money. It is insolvent and cannot pay its bills. Remember what happened to Detroit? It went bankrupt. Remember the situation in California? It defaulted on its loan payments. Both went, hat in hand to the federal government for a bailout, but there was no money in the cupboard. Did you hear about Greece, Italy, Spain and Portugal? They have defaulted on their loans and can't even pay their employees.
The cumulative, past decisions of the federal government have directly contributed to the current state of economic affairs. Thirty years ago the national debt was only $ 2 trillion, whereas at time of writing it is eight times as large, at just over $ 17 trillion. In ten years, estimates put this debt load at more than $ 50 trillion!
The US debt ceiling is a mirage. It exists in name only. Every time the US government prints more and more money to finance its operations and starts coming perilously close to their self-imposed debt ceiling, the only thing that happens is that the politicians - after some ceremonial bickering and fighting - simply increase the debt ceiling to another level, and adding several trillion dollars to the previous debt load. Instead of tightening their belts and dealing with fiscal pressures, they merely bow to their own incompetence by agreeing to increase the debt levels to another higher "debt ceiling" only to be broken the next time they come square up against it. In effect the only ceiling that is real is the glass ceiling that is easily and routinely broken whenever they bump up against it In effect, they view it as a glass ceiling rather than a debt ceiling, throw rocks at it until they break it and then increase it to a new, higher level.
They attempt to solve their money problems by printing more money. This is analogous to you or I getting a cash advance on our Mastercard to pay our Visa bill and then getting another cash advance from a third credit card to pay our Mastercard bill. But unlike the federal government when you and I reach the maximum allowable limits on our credit cards, [our own "debt ceilings"] we cannot go and simply grant ourselves another credit limit increase, we have to pay the piper! We have to answer to our creditors. If we don't pay our monthly bills, the credit card companies will cancel our credit cards, not give us an increase in our lines! We can't throw rocks at our debt ceiling and keep breaking it.
When we reach our own, personal fiscal cliff we either back off or fall into a financial abyss.
What is the end result of these decisions of our federal government? Higher inflation, less purchasing power, an increase in the price of gold, mounting layoffs and factory closings, families losing their homes, increased reliance on social security programs which only exacerbates the situation, and a general worsening economic climate. Impacts to the US are a worsening trade deficit, weakened relations with trading partners lie Canada, Germany, France, and even China and Russia. Furthermore, we will experience an exodus of gold bullion from the vaults in fort Knox as these countries begin to refuse payment of their debts in American dollars and start insisting on gold bullion instead.
Today, the US is exporting more gold bullion than at any previous time in our history and it will only get worse. The Stock Markets are unstable and unpredictable. Large, multinational corporations in the car and airplane industries as well as billion dollar firms in the financial sector have already received trillions of dollars in bailouts. But who will be there to bailout the US government? The only option is to break the glass ceiling of debt again and to start this vicious cycle again. And in the wake of these decision there will be more casualties in the private sector as both corporations and individuals become insolvent and even bankrupt.
You can protect yourself and your wealth by taking action now. Buy gold. Invest in gold. Hold gold. Remember when the price of gold was only $35 an ounce when the US went off the gold Standard? Remember when the price hit $100 an ounce? Remember when it hit $ 1000 an ounce? Only a few months ago it approached $ 1750 an ounce before pulling back slightly. Do you know that some experts are predicting that the price of gold will hit $6000 an ounce within the next five to seven years?
Those who accumulate gold in the next few years will survive the economic meltdown that is surely coming. Those who chose to ignore these lessons will become an economic casualty like so many others.
What will you become?