The next in a series of blatant, bad decisions: The Dishonorable Chair-Satan Ben Bernake is forcing the Powers That Be to come to an agreement on the debt ceiling. Yes, forcing them to. According to the reports I have read and the video I have seen from CSPAN the US Government is in worse shape than ever. As of August 2, 2011, the US Government will be unable to pay Social Security benefits (no checks for the current recipients) because We, The People, are broke. Chair-Satan Bernake has already stated, quite implicitly, until a resolution on the debt ceiling is made - and if it is not raised - there will be no purchasing of US Debt (Bonds) by the Federal Reserve - in other words, they are going to hold off on printing money until the debt ceiling is raised. This is good and bad. Good - the devaluation of the Federal Reserve Note is on hold. However Fed interest rates will have to be raised from the artificial 0% they are being held at in order to compensate for the lack of liquid capital flowing through the system. Bad - the Debt Ceiling will be raised. Take my word on it, or don't. The scenario will play out within a few weeks at most. When the debt ceiling is raised, the Republicans and Democrats essentially "kick" the debt down the road a little further. The Fed will resume with QE III and the Federal Reserve Note devalues and hyperinflates because, we have been warned by Asian and European investors that if the unbridled Federal Reserve Note printing continues, they will dump United States Treasury Bonds . Already Moodys is about to downgrade the United States credit - when that happens we will be in the same boat as Greece, Italy, Spain, Portugal, and Ireland. As for the rumor of the Chinese seizing United States hard assets in exchange for debt? Not on our soil. Perhaps some overseas assets. If they even attempted to take hard assets not directly owned by their debtor (The United States Government) - it is theft and could be construed as an act of aggression, even war. China can make demands all they want for being paid in land...they will never get it. Minerals and other commodities, perhaps they could. Commodities like Gold and Silver will be the first and most preferential thing any Creditor nation will take from the US. There is however, a Caveat. The true issuer of the US Bonds - The Treasury - physically holds all the gold and silver the nation has in it's coffers. However, the primary owner of that Gold and Silver - in the form of Certificates of Guarantee - is (Drumroll) - The Federal Reserve Bank - a Privately Owned and Held corporation that is not beholden to any of the United Sates debtors, at ALL. All the Federal Reserve Bank has to do to completely drive the last nail into our National Fiscal Coffin is call those Certificates of Guarantee as "owed and due", and the US has to pay up. It is truly a zero sum game - We, The People, lose. The US Government Loses, the private shareholders of the Federal Reserve Bank OWN the United States. They hold more US Treasury Bonds than any other creditor in the world. Public roadways are owned by the States, and are only partially subsidized by the Federal Government. That is why if any of you ever drive Interstate 10, for example, from end to end, in some states the road is in excellent repair. In others it is in shoddy shape. It is all dependent on how much money and time each state decides to invest on "their" stretch of "US" Highway. So, the Chinese could not seize those. I have said it before, I will say it again - this is truly a zero sum game. The US Treasury alone burns through 90 Billion Federal Reserve Notes in two weeks. That is an average of approximately 6.5 Billion Federal Reserve Notes a day. That is one sector of our Federal Government. Just one. See below: Daily Treasury Statement from June Today, we have the first real obvious sign that their economic bubble is about to go boom. To quote the Reuters article: "Bernstein Litowitz Berger & Grossman filed a scorcher of a suit against Deutsche Bank Wednesday, claiming that the bank sold financial services group Dexia more than $1 billion in mortgage-backed securities at the same time Deutsche Bank bet $10 billion that those notes would fail. The 175-page (!) New York state supreme court complaint is Bernstein Litowitz's second major new MBS filing in a week, coming on the heels of Allstate's suit against Morgan Stanley. The Deutsche complaint is filled with eye-popping allegations. Bernstein claims, for instance, that senior traders at the bank described the securities they were peddling to clients like Dexia as "crap," "pigs," and "generally horrible." One trader, Greg Lippman, allegedly wrote, "DOESN'T THIS DEAL BLOW" in an e-mail to a colleague about an offering Dexia sank $23 million into. In another e-mail the complaint cites, this one to a hedge fund investor, Lippman allegedly disclosed a $1 billion short position on mortgage-backed securities that was going to make him "oceans of money." I said it before, I will say it again. This does NOT bode well. Get your food, water, and essential preps in place. Buy more essential preps. If you have liquid assets hanging around in Federal Reserve Notes consider investing in bullion. This is not a drill, this is not a joke. I would be hard pressed to make this stuff up. Prepare for the worst, pray for the best.
