This Little-Known Rule Could Send Gold to $10,000

[devil21]

Hyperinflation and printed money could pay off the debt.

Speaking of John Williams, he's calling for that to get rolling soon here:
http://www.zerohedge.com/article/sh...ms-prepare-hyperinflationary-great-depression

The U.S. has no way of avoiding a financial Armageddon. Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover obligations. The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money. With the creation of massive amounts of new fiat dollars (not backed by gold or silver) will come the eventual destruction of the value of the U.S. dollar and related dollar-denominated paper assets.

With the banks being told recently to "start lending or else" it sounds like a catalyst for getting the new money into the system. It may be typical govt bs though so no guarantees. However my credit lines keep getting slashed so the banks don't seem like they want to do much lending.

 

[Pauls' Revere]

Is this why they are going to raise the debt ceiling?

 

[devil21]

Is this why they are going to raise the debt ceiling?

Not directly but it is sorta related. Since consumers are borrowing less and less, the government must step in and borrow more and more to keep the pyramid scheme ("growth") functioning. Our entire economy is based on debt. Once debt is reduced then the system starts imploding onto itself as money literally disappears from the economy. TPTB (.gov, Fed, Treas, bankers, etc) are working to keep the gig afloat and can NOT allow deflation to take hold long term. Therefore they must borrow what the consumer is not borrowing and attempt to inflate. "Stimulus" is just a euphemism for the govt picking up the debt slack and the debt ceiling must be raised to accomodate this expanded borrowing.

 

[denison]

You know what is funny, is all day I have had this thought of the computer game Civilization 4, and I can just picture a little Obama character saying "We default on all our loans and we back this up with nuclear weapons!"

It's certainly possible, and if I didn't beleive that the absolute destruction of the U.S. was the goal I would even say likely. Or maybe they will wreck us BY defaulting and goading the Chinese to invade...

they'd be absolutely stupid to default, unless they want WW3.......oh wait!

I think China will already have deed to the US before any of that will happen. They won't mind paying off debt by giving away land and businesses.

 

[denison]

The libertarian in me screams that the government should simply declare bankruptcy ASAP (but without doing what you suggest ): It's the government's debt, not mine, and not yours, and not anyone's children's.

The not-strictly-libertarian gremlin I keep stuffed in a dark corner of the recesses of my mind keeps saying that if the feds cut almost all spending ASAP, they can still pay back the debt by continuing to tax us as they have been. That's technically an option too, but realistically, I don't see it happening before it's too late.
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It is your debt cause you let the government run up the bill in your name . And you didn't mind spending the money in the goods times(90s), now it's time to pay up and you wanna run? Not gonna happen. The only thing you'll do if you try to run away this debt is cause a WW3/Fallout scenario. If we didn't like what they were doing then we should of made laws against borrowing from foreign countries, but we didn't.

Either way we're all gonna be held accountable for our government's misconduct. We should of put a stop to them along time ago.

 

[ARealConservative]

It is your debt cause you let the government run up the bill in your name . And you didn't mind spending the money in the goods times(90s), now it's time to pay up and you wanna run? Not gonna happen. The only thing you'll do if you try to run away this debt is cause a WW3/Fallout scenario. If we didn't like what they were doing then we should of made laws against borrowing from foreign countries, but we didn't.

Either way we're all gonna be held accountable for our government's misconduct. We should of put a stop to them along time ago.

We defaulted in 1971 and were not held accountable.