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The Debt Ceiling Extension Is Bad News for the Economy

Yesterday Congress voted to “temporarily” (nothing in government is ever temporary) extend the debt ceiling for 3 months to give them time to negotiate the fiscal cliff and sequester issues.  Upon hearing this I immediately decided to call Visa and inform them that I had decided to temporarily (for 3 months until it becomes permanent) increase my credit line while I figure out how not to tighten my family’s belt.  I explained to them that I’d be taking a couple, maybe 3 cash advances so I’d be able to make the minimum payments each month but not to worry as they’s be on time.  You see, this is very important to me since I have an excellent credit rating (recently downgraded only one notch) and don’t want to be seen as a deadbeat creditor.

Did you expect anything else?  Do you expect Congress to all of a sudden get a backbone and no longer borrow more?  Do you expect them to tell the country that we must “live within our means?”  The funny thing is that if they did this, people would be so pissed off and no one would be re-elected.  Of course the 50+% who receive “assistance” would vote them out because of benefit cuts but even those who pay in will vote them out as taxes rise and the economy implodes destroying jobs and businesses.  Can’t anyone see that the economy “left to its own” and without deficits (they really do matter don’t they?) would “grow” at an 8-10% lower clip (which by the way would be seen as a DEPRESSION)!  …And the stock market would trade down maybe 70-80% before finding any support, interest rates would immediately rise to 5% and then start going up, and the banks… insurance companies… bread lines?  Do you see what would happen if we really, truly lived within our means?  Like real people?  Real businesses?  This would be suicidal!

All 3 issues, the debt ceiling, sequestration and the fiscal cliff are all one and the same discussion.  They were all caused by the same policies and none of the 3 have a solution.  I have to say that I don’t have a solution for you either, I say this because of the old saying that you “shouldn’t criticize unless you have a better idea” or answer.  Well I do… sort of… but defaulting on everything and going back to a Gold backed currency would be painful and we all know that “pain” must be avoided at all costs.

I was asked the other day whether or not I thought that our current “state of affairs” was by stupidity or intentional.  I wrote about this (I believe in 2009) and came to the conclusion that NO ONE could be this stupid!  Greedy?  Yes, you can get anyone to vote for anything… IF it benefits them personally (like getting re-elected).  But if you were “running the show” for your country’s benefit (which would benefit you and your great great grandchildren) you would never ever have steered this country to the position (ditch) it is now in.  No, we are where we are, not by mistake, not by error or stupidity (except individual greed) but because it was PLANNED!

Let me explain this a little bit further.  Do you believe that “Americans” are running this country?  You shouldn’t.  You should read a little bit of history (read the book “The creature from Jekyll Isle”) and you will see that the creation of the Federal Reserve in 1913 was none other than the beginning on the road to where we are now.  The Federal Reserve is neither “Federal” or a “Reserve”.  The Fed is a private entity owned by “families” (sounds like the mafia doesn’t it?), several from Europe who “control” our money.  Without going into a long explanation, just remember that Baron Rothschild was not only famous for being immensely rich, he coined the phrase “Give me control of a nation’s money and I care not who makes her laws.”  We are exactly 100 years after “giving” (stolen) away control of our money, as the title suggests, “What did you think would happen?”