Fall back to sanity
Polistra's Seventh Law:
When the elites say X is unthinkable, it's time to think X.
Today the elites all agree
that breaking the debt ceiling is unthinkable. Time to turn back the clock.
go back to a real economy, but the psychopathic genocidal alien mutants who infest DC and NYC will not
take us there voluntarily. It must happen by force, and economic force would be less messy than physical force. (However, I'm only speaking carefully here. We all know which type of force will be needed.)
Let's examine the unthinkable
consequences of returning to sanity.
The United States has never defaulted on its debt and Democrats and Republicans say they don't want it to happen now. But with partisan acrimony running at fever pitch, and Democrats and Republicans so far apart on how to tame the deficit, the unthinkable is suddenly being pondered.
A default would come if the government actually failed to fulfill a financial obligation, including repaying a loan or interest on that loan.
Among the first directly affected would likely be money-market funds holding government securities, banks that buy bonds directly from the Federal Reserve and resell them to consumers, including pension and mutual funds; and the foreign investor community, which holds nearly half of all Treasury securities.
First of all, one premise is wrong. Presently, most of the debt is being "bought" by Bugsy Bernanke of the Jewish Mafia, who is Weimaring the dollar in order to monetize the debt. If no bonds could be issued, Bugsy would have to stop Weimaring. That's good.
Second: If consumers and funds can't buy US bonds, they can buy other bonds. Or pension funds may choose to buy more companies, which they're doing already in some places. Or individuals can simply hold the money as cash. If you're buying a bond to get negative real interest, you're not getting anything that you wouldn't get with plain cash anyway.
If the U.S. starts missing interest or principal payments, borrowers would demand higher and higher rates on new bonds, as they did with Greece, Portugal and other heavily indebted nations. Who wants to keep loaning money to a deadbeat nation that can't pay its bills?
That's good. Zero interest is a tool used by the Jewish Mafia to insure that no economic activity occurs outside Jewish Mafia circles. If banks and corporations realize they will need to start paying and charging real positive interest, the financial sector will return to real free-market economics with the interest rate serving as the variable price
that regulates supply and demand. Polistra has discussed this
At some point, the government would have to slash spending in other areas to make room for any further sales of Treasury bills and bonds. That could squeeze payments to federal contractors, and eventually even affect Social Security and other government benefit payments, as well as federal workers' paychecks.
Slashing spending is what both "parties" pretend they want, but obviously don't want. It is unquestionably needed. When the unionized federal workers are unpaid, a useful form of hell will finally break loose, and the "parties" will have to do something.... but they still won't. And it won't matter. Reality will finally intervene. The states, which have not
been living on credit, will still function, and some people will realize that Federal agencies are either redundant with state agencies or purely lethal.
A default would likely trigger another financial panic like the one in 2008...
The current supposed "recovery" is false, based entirely on government spending and misleading statistics. It needs to be cancelled.
U.S. stock markets would likely tank - devastating roughly half of U.S. households that own stocks, either individually or through 401(k) type retirement programs.
. We should have closed down Wall Street, confiscated its ill-gotten loot, and jailed its criminal participants in 2008. Instead we handed even more privileges and trillions to Wall Street. Closing Wall Street will free up the real economy, force real companies to finance their activities by getting loans or seeking investment directly.
Eventually, the cost of most credit would rise - from business and consumer loans to home mortgages, auto financing and credit cards.
Variable interest is the 'invisible hand' of a properly functioning credit system. Discourages borrowing and encourages thrift.
Continued stalemate could also further depress the value of the dollar and challenge the greenback's status as the world's prime "reserve currency."
The "reserve" status of the dollar does no good for American consumers. We are subject to wild price swings that have no connection to supply and demand, all because oil is priced in dollars.
= = = = =
Well, all of these consequences are good. So where's the problem? Ah! The ruling class will be revealed as a pile of monstrous lunatic alien hyper-super-criminals! That's the problem! That's the unthinkable consequence.
Time to think it. Think it good and hard. Eat it.
Labels: the broken circle