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The old saying is that “things don’t matter – until they do”; which is EXACTLY what we’re dealing with in regards to the soaring, parabolic debt growth the ENTIRE WORLD has endured since Nixon closed the “gold window” in August 1971.  Think I’m exaggerating?  Then feast your eyes on this!

US National Debt Graph

For those that think such a TOWERING EDIFICE is sustainable, think of how much interest is required to service it.  Each 1% increase in Treasury yields adds $170 billion of annual interest expense at the current debt level of $16.84 trillion; excluding roughly $5 trillion of “off-balance sheet” debt owed by government-owned parasites Fannie Mae and Freddie Mac.  Thus, for anyone that actually believes the PROPAGANDA of a potential “end to QE”; all I can say is, ROFLMAO…

FED ZIRP Commitment Changes

If you recall August 2011’s Global Meltdown II; when S&P stripped the U.S. of its AAA rating – as its debt surged through the then $14.294 trillion debt ceiling…

S&P downgrades U.S. credit rating for first time – 8/5/11

…Congress’ makeshift solution was the ill-fated Budget Control Act of 2011; in which, the debt ceiling was raised to $16.394 trillion in exchange for just $185 billion of “sequestration” cuts in January 2013.  Those cuts have since been whittled below $80 billion – back-end weighted, of course – and the “debt ceiling” was BLOWN AWAY just 16 months later…

It’s official: U.S. hits $16.394 trillion debt ceiling – 1/2/13

…causing the government to form a rare bipartisan coalition to “suspend” the debt ceiling until May 19th; ironically titled “No Budget, No Pay”…

Obama signs debt ceiling suspension, ‘No Budget, No Pay’ into law

…as we still don’t have a signed budget – after four years (but don’t worry, Congress is discussing it over golf)…

Chambliss’ Hole-in-One Puts Obama in Play on Budget Talks

So here we are on May 14th – with U.S. debt up to $16.84 trillion, and rising rapidly

U.S. Debt Clock

…to the point it’s becoming a farce

Debt Ceiling visualized – Demonocracy

…and – of course – the government will try to further delay the ceiling with shady “extraordinary measures”…

It’s Debt-Ceiling Madness Again. Why You Should Stay Calm (Sort Of)

…perhaps until Labor Day (but WAIT, how can you “delay” a debt ceiling from being hit when you’re already $500 BILLION above it?!?!)…

U.S. won’t hit debt ceiling until at least Labor Day, says Treasury secretary

However, they ultimately will be forced to make a decision; to either implement the 16th “debt ceiling” increase since 1996…

Debt Ceiling Increase Chart

…or eliminate it altogether…

DEBT CEILING TO INFINITY

Amazingly, the ENTIRE WORLD is ignoring this gargantuan issue; just like EVERY OTHER issue, care of the massive stock and bond market gains generated by the most shocking MONEY PRINTING and MARKET MANIPULATION scheme of all time.  I.e., no one currently cares that other rating agencies are likely to downgrade the U.S. as well…

Moody’s May Cut U.S. Rating in Absence of Budget Deal – 9/11/12

Fitch warns U.S. risks losing AAA debt rating – 2/27/13

…and that according to S&P’s own language in its August 2011 downgrade, it is essentially guaranteed to do so…

“We could lower the long-term rating to ‘AA’ within the next two years if we see less

reduction in spending than agreed to; higher interest rates; or new fiscal pressures resulting in a higher general government debt trajectory than we currently assume in our base case.”

…that is, unless it kowtows to government strong-arming

S&P Lawsuit: U.S. Accuses Ratings Agency of Fraud in lead up to Financial Crisis

I ASSURE you that every effort imaginable – legal and illegal – will be utilized to “kick the can” further down the road.  However, it is a mathematical certainty that U.S. debt will rise parabolically – and eventually, hyper-parabolically,  Thus, no matter how much money is PRINTED to keep rates low – yielding accelerating INFLATION, of course; the debt ceiling issue WILL eventually matter; likely, much sooner than you can imagine…

Titanic will Founder