Weâ€™ve Just Breached the Debt Ceilingâ€¦ Next Comes the Default
by Phoenix Capital Research
While Barack Obama is chugging Guinness and Congress is doingâ€¦ well not much of anything, weâ€™ve breached the US debt ceiling.
Thatâ€™s correct, the US now has more debt than is legally permitted. Weâ€™d crossed the â€śmore debt than is healthyâ€ť as well as the â€śmore debt than is saneâ€ť levels long ago. However, it wasnâ€™t until the last few weeks that we cleared the legal debt limit.
Youâ€™d think that the worldâ€™s largest economy (and home of the worldâ€™s reserve currency) exceeding its debt limits would be big time news. But weâ€™ve yet to hear a peep about it from the mainstream financial media.
Itâ€™s even stranger that we havenâ€™t heard mention of the fact that the US is in fact RAIDING pension funds to continue to fund its debt.
Thatâ€™s correct, Tim Geithner, who aside from being a tax dodger has managed to make US Treasuries (formerly the ONLY risk-free investment in the world) so unattractive to foreign investors that he is now using money that was promised to retirees to fund his debt orgy.
Letâ€™s think about this for a momentâ€¦ US Treasuries are so unattractive that investors no longer want to buy themâ€¦ so weâ€™re using money promised to those who workedâ€¦ to buy them.
Aside from being morally wrong, Geithnerâ€™s moves are the usual â€śIâ€™ve got no solutions so Iâ€™m just going to come up with something on the flyâ€ť nonsense we get from the DC crowd. Even Geithner himself has admitted that his latest scheme will only buy the US about three monthsâ€™ time before we start defaulting on our debt.