• The Debt Ceiling, You’re In The Noose

    Date: 2011.07.23 | Category: Alternative Media | Tags: ,,,,,,,,,,,

    The Debt Ceiling, You're In The NooseThe Debt Ceiling, You're In The Noose

    The recent developments on Wall Street point out the huge incompatibilities of government intrusion into private investments and the free market. The Federal Reserve can easily print huge amounts and issue an endless slew of Treasury bonds where the debt is conveniently sold to foreign entities that are more than willing to sell them off and avoid the eventual collapse of the American economy. How far can you raise a debt ceiling without devaluing the dollar? One of the sticking points of selling Treasury bonds to country such as China as they only have an economic relationship with us, not that they really care about American citizens. If they feel that they will receive no return on their Treasury bond investment, what prevents them from selling them off to another nation that we have issues with such as Iran or North Korea.

    What a horrible surprise for the U.S. Treasury having to honor the value of a mature Treasury note to a country that is testing nuclear weapons. President Ahmadinejad would be pleased as punch if the U.S. had to hand over several hundred billion dollars for a mature Treasury note that had passed through the hands of several enemy nations before having to pay off to Iran. Meanwhile the American citizen’s financial neck is in the noose that is attached to the rising debt ceiling as they stand on the melting value of the dollar.