This deadline, a self imposed one by Congress, is an artificial ceiling that has been put into place to reign in the controls of big government and keep it in check! If it is reached, look out below, things are going to fall apart and chaos will erupt.
If you caught on yet, I'm being sarcastic. The debt ceiling means nothing, and is absolutely meaningless as it exist in its current shape and form.
For decades this ceiling has been raised time and time again, at a faster and faster rate, as the United States has expanded its global empire, supplanted governments and placed so many military bases around the world, that it would make the Roman Empire blush.
For decades this debt ceiling has been utterly and completely useless. Yet, you wouldn't know this if you were listening to the Mainstream Media over the past month, who have been absolutely hysterical and panicked about this approaching deadline. Something they have barely bothered to even notice over the last eight years. Odd indeed.
So what has changed?
The answer is obvious. Trump has changed. Since being elected, the debt ceiling has been of particular interest to the MSM, as they are by and large, almost exclusively left leaning. This is ok in and of itself, and it is good that they are finally starting to inform the general public of this ticking time bomb, but their intentions are obvious and therefore despicable.
If the lying MSM actually cared about this matter, they would of course been along for the ride over the last few decades, as members of the precious metals community have been, warning the masses about this threat.
Now, as it stands, the debt ceiling has once again been put off until March 2019. Extend and pretend is here to stay and as I have been stating for years now, its end goal is infinity.
The question is now, what can the United States do about it now? What can one do to reign in an "official" debt of $20.6 trillion?
The answer may shock you, but is very start forward. Nothing.
Nothing can be done at this point. Changes can be made, that could benefit society as a whole, however, the facts are the facts and these are frank. What cannot be repaid, will not repaid. Period.
The United States government, fueled by reckless and out of control spending has not only gone over the cliff, but have continued on and jettisoned into orbit. They have left planet earth and are so disconnected from reality, that reality no longer applies, at least in the short term.
Politicians know this, the ones loaning them money know this, and everyone who doesn't is asleep at the wheel, blissfully ignorant.
So what happens next?
This is a multi pronged question and one that goes counter intuitive to what you would typically think.
The government should keep spending, but spending on the right things. Infrastructure, buying natural resources and hard assets should be at the top of their priority. Bringing their troops home and securing their homeland with the most state of the art military defenses money can buy should come next.
For you see, the day is eventually going to come when the piper demands his due and this whole farce comes crashing down. The US will default and the dollar will become worthless. Precious metals will explode higher in price and those who were wise enough to take action early will partake in one of the greatest wealth transfers this world has ever seen.
Meanwhile, if the United States takes my advice (don't hold your breath), they will be in a key position to rebuild and restructure, after a major default. Sitting on a horde of real, valuable assets, that they bought with phony fiat money. In addition, they would have a strong military force, that none would dare oppose, for decades to come.
But then again, what do I know? I'm just a simple silver bug, typing away behind a computer screen, attempting to forecast a storm somewhere over the horizon, somewhere in the distance, that the majority of people would simply rather ignore.
- As first seen on the Sprott Money Blog