Sometimes I hate keeping up with the new.
This debate is one of those times. The question is, will the US default or not? The answer is yes, but will it be outright or monetarily. That's like debating whether we'll die from starvation or being murdered. It's not like we care because we're all going to suffer then die. Here's the description of how government decivilizes us including how our government will decivilize us:
"The expansion
of the monetary base can go on until such time as commercial banks
monetize all of the reserves on their books. Prices then rise to
such levels that transactions no longer take place in the official
currency unit. The division of labor contracts. The output of capital
and labor falls. At some point, people adopt other currency units.
They no longer cooperate with each other by means of the hyperinflated
currency."
Welcome back to barter. Our government will reduce us to prehistoric, barter exchange.
"No nation
can long pursue a policy of hyperinflation. It destroys the currency
and destroys the division of labor. The result is starvation. The
policy of hyperinflation ends before this phase. Members of society
shift to other forms of money."
Those left alive.
"This is why
the policy of hyperinflation is useless in dealing with the 75-year
obligations of the federal government to support old people through
Social Security, Medicare, Medicaid, and federal pensions. These
obligations are inter-generational. Hyperinflation lasts for months,
not decades. When the government ends its policy of hyperinflation,
it finds that it is still saddled with these obligations."
So it will default. It has no choice.
I've pointed out several times that this new bought of money printing by the Fed is designed to steal the last bits of wealth we controlled, but don't take my word for it.
Take it from this guy:
"Last week was
a momentous one when the financial world passed the point of no
return. Right after a German court cleared the way for massive European
QE to get underway, steamrollering opposition from German politicians
and the German public in the process, the Fed announced not just
QE3, which was expected, but open-ended and unlimited QE and suppression
of interest rates over a longer timeframe. The Fed has declared
open warfare not just against the dollar and savers in general,
but against the entire American middle and lower classes, who will
be progressively stripped of their assets and impoverished, the
better to serve the interests of the banking class and the elites
at large. "
As bad as you think it might be, it's going to be worse. We're screwed. As I pointed out yesterday:
"It is interesting
that the Fed fired its biggest guns right after the German courts
cleared the way for Europe to do QE on a grand scale in a similar
manner. This means that the dollar and euro are going to go down
in value pretty much in lockstep, so we are going to have to take
this into account when looking at dollar index charts, which have
a very heavy euro weighting, as going forward the dollar index
chart may partially mask the ensuing dollar collapse. This brings
us to another point – is the rest of the world going to stand
by and watch and do nothing as the dollar accelerates into a downward
slide, which will have the advantage for the US of devaluing its
huge debts in real terms and increasing its competitive advantage
re exports? – the answer to that is no – everybody is going to
be in on the game and the fiat race to the bottom will intensify
fuelling accelerating global inflation even as economies shrivel.
"
Buy gold, food and more gold and food.
Peter Schiff
exposes the moral and economic bankruptcy of Bernanke's open-ended money printing. He's going to steal every last dime from every American saver.
"Fortunately,
the crude limitations of the Fed's only policy tool have become
more apparent to the markets. If you must stick with the nautical
metaphors, QE3 has sunk before it has even left port. The move was
explicitly designed to push down long-term interest rates, but interest
rates spiked significantly in the immediate aftermath of the announcement.
Traders realize that an open-ended commitment to buying bonds means
that inflation and dollar weakness will likely destroy any nominal
gains in the bonds themselves. To underscore this point, the Fed
announcement also caused a sharp selloff in Treasuries and the dollar
and a strong rally in commodities, especially precious metals."
Bernanke's announcement of unlimited QE3 backfired already. We're so screwed.