The U.S. Debt Ceiling Has Been Suspended

By: Tom Chatham

When is a debt ceiling not a ceiling? When it has been removed. That is the solution that was enacted on Wednesday night to fund the government for the next 90 days. This will last from Oct. 17, 2013 until Feb. 7, 2014. This has some very dangerous implications for Americans. It means as of right now there is no debt ceiling and the federals can spend as much as they like. With all of the previous spending by DHS, and the impending economic crash that we face in the near future, it is terrifying to think what the federals might buy in the next 90 days that they can use against American citizens.

With this scenario in place the writing is on the wall and foreigners can read it well even if Americans cannot. The dumping of treasuries will likely increase substantially over the next few months as the collapse becomes evident to everyone but Americans. This is the end game and most people don’t even know they are in it.

With the debt ceiling removed even temporarily, the government has the ability to overspend and when the ceiling is reinstated in 90 days any new debt over the current limit will not be debatable. The limit will automatically have to be raised to that amount. That is why President Obama answered “no” when asked if there would be a renewed debt debate next year. He knows he can bypass it. When the time comes for the House to raise the debt limit they will either have to raise it to encompass the additional spending or not raise it and possibly trigger a default. Either way the Democrats can blame the Republicans for the additional debt increase or a default.

It could go something like this. The government decides how much extra money they will need until after the elections next year and borrow it now. The money is dispersed into the usual slush funds until needed to avoid any new debt debates before the election. The Republicans will lose the ability to stop uncontrolled government growth next year and the Democrats will deprive them of any debt debates before Nov. This will give the Democrats a big edge in the elections and could allow them to take some seats in the house. Not that changing from one party to the other will change anything, it will just determine how fast we collapse.

By this time next year I suspect the Petrodollar will be on life support if not completely dead and high inflation will be rearing its’ ugly head. The governments answer to this will be price controls which will lead to shortages. Then things go downhill fast from there. That’s if we actually make it to next fall without a serious incident in the U.S. before then.

These are truly perilous times for the U.S. and everyone should prepare as they deem appropriate. The west line has shifted and we are now on the trailing edge of history. If we are to survive as a nation and prosper again we must learn to operate with a smaller more efficient economy as others before us have done. This will entail a smaller more localized economy with more small producers and a stable medium of exchange. The only alternative is to become a failed third world nation with no future.

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Posted on October 18, 2013, in Preparedness and tagged , . Bookmark the permalink. 8 Comments.

  1. “How did you go bankrupt?” Bill asked.

    “Two ways,” Mike said. “Gradually and then suddenly.”

    (From Ernest Hemingway’s 1926 novel, The Sun Also Rises.)

    We’ve been going gradually for quite a while now ( since Nixon closed the gold window in 1972 actually ). Got a feeling we’re about to switch over to “suddenly”.

    • I heard today that the debt went up about 347 billion just since Wednesday. They’re not wasting any time. I think the next 12 months will shake people up quite a bit. Welcome to interesting times.

  2. Not quite, but not far off.

    On 1 Oct, 2013 it was: 16,747,478,675,335.18
    (Start of the new federal fiscal year ……by comparison, end of Sept, 2012, it was: 16,066,241,407,385.89 …….681 billion deeper in the hole this past year )

    On 16 Oct, it was: 16,747,360,549,057.23

    On 17 Oct, it was: 17,075,590,107,963.57

    ( Pent up demand and federal worker backpay I guess, huh ? )

    18 Oct figures won’t post until Monday.

    328 billion FOR LESS THAN A MONTH so far this year, compared to 681 billion for entire last year.

    Starting off to be a banner year, huh ?

    To put all that in perspective: From the founding of the country until Jimmy Carter left office in 1980, the debt was just under ONE trillion…..about 200 years to get to the first trillion…..and 33 (+/-) years to get to 17 trillion.

    Anybody see the curve getting steeper ?

    “The greatest shortcoming of the human race is our inability to understand the exponential function” Dr. Al Barlett Professor Emeritus, University of Colorado.

    Well Al, we’re about to get educated on the subject !

    The figures can be watched at the US Treasury website:

    http://www.treasurydirect.gov/NP/debt/search?startMonth=10&startDay=01&startYear=2013&endMonth=10&endDay=18&endYear=2013

    • Ok, so whats a few billion between friends. A mere pittance I say. Speaking of exponential growth, I read somewhere the debt is doubling every 7.2 years. That’s what I call a great investment, oh no, wait….

  3. It’s the only way to freedom, we have to go through the fire. The sooner the better.

  4. Ronald Reagan’s 8 years saw the greatest increase of any president, tripling the debt from about 900 billion in 1980 to 2.7 trillion in 1988. ( and for reasons I fail to understand, he has achieved near sainthood as a fiscal conservative….ahahahaaa). Even Bush2 and Obama haven’t managed to ride over over than kind of increase in percentage terms.

    But the problem is the AMOUNT per year is growing out of bounds…..you add 1/2 to 3/4 trillion a year, and by golly, you’re digging quite a hole. When the FED finally looses control of interest rates ( and they will ), a rise back to historical ‘normal’ rates of 5-6% will totally eat up nearly ALL the current revenue….anything above 6%, and the govt will have to borrow (print) just to pay the interest on the debt.

    That is the point of game over……Weimar Germany…..

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