RANTING ANDY – I know it’s early on a Monday morning, but I had to give my take on the “deal” announced last night by our sham of a President and Congress. Normally nothing shocks me anymore in the seething cauldron of corruption we call America, but even I am taken aback by the gall of these disgusting people. I literally felt ill when Obama interrupted a feel good story about Mark Wahlberg on “60 Minutes” last night to give his speech, literally screaming at the TV (ask my wife) with a lust I last showed during Bush’s II’s initial “we are attacking Iraq” speech in March 2002.
As you are all aware, I predicted in my July 28th RANT, “Sunday Night Special”, a lot of blustering going into the weekend, and “come Sunday night, a triumphant, “bipartisan agreement” to “temporarily” raise the debt limit by roughly $1 trillion, to $15.3 trillion, with essentially ZERO spending cuts or tax increases to back it up – in essence, the worst possible scenario for the dollar and the U.S.’s credibility.”
Unfortunately, what we got was even WORSE, by several magnitudes! Worse for America, worse for the Western World, and far worse for my already maxxed out forecast of imminent hyperinflation. Per the NIA update released late last night (text below), the debt ceiling will essentially be raised by $2.1-$2.4 trillion, to roughly $16.4-$16.7 trillion from $14.3 trillion currently, or just enough to get through the 2012 elections if you believe the fatally flawed, insanely optimistic math of the government (4.8% GDP growth, LOL!). Most of the supposed “dollar for dollar” spending cuts intended to match the debt explosion haven’t even been CONSIDERED yet, let alone included in this plan, and most of the proposed initial cuts don’t even START until 2013, AFTER the entire $2.1-$2.4 trillion debt limit increase has not only been IMPLEMENTED but likely UTILIZED ALREADY! In other words, it is very likely that the national debt will be in the $16.5 trillion region before even a dollar of spending is CUT!!!! Not to mention, we already have a $2+ trillion/year annual budget deficit, which will at the least be maintained indefinitely, if not increased due to the aforementioned optimistic math that assumes government revenues will dramatically increase due to forecast strong economic growth!
I have more than a few things on my mind about this despicable agreement to further destroy America for the benefit of Washington and Wall Street, but my most vitriolic RANTing has to be reserved for the supposedly “conservative” Republicans in the House of Representatives, led by John “limp-d**k” BONER (talk about a misnomer). As you know, I have absolutely no political leaning at all, except on selected social issues (such as gay marriage, abortion, etc.), where I favor the left. But money-wise, I have long maintained there is not the slightest difference between a “liberal” and a “conservative”, as both parties have long, documented histories of the identical policies of uncontrollable spending and debt issuance. The biggest misnomer in political history, for instance, is that Reagan was a conservative spender (lol, what do you think “supply-side economics” actually means, not to mention his obsession with outspending the Soviets in the Cold War). Pound for pound, Bush I was one of the biggest debt-issuing Presidents in history, and words cannot describe how much financial (and other damage) done to this country by the REAL WMD, George W. Bush. As for the Democrats, of course, no refutals are required, as even Clinton was able to rack up $2 trillion of debt during a period of supposed “budget surpluses”, while Obama has racked up more debt ($5+ trillion in just 2 ½ years, soon to be $8 trillion in four years) than most countries on earth COMBINED in history!
Anyhow, when you consider what a LIAR this BONER guy is, PRETENDING to be “conservative”, it should make you not walk, but RUN to your nearest coin shop to buy gold and silver! As I noted in earlier RANTS last week, the Democrats purposely proposed unpassable bills involving Robin Hood-like taxing of the rich, while conversely the Republicans proposed equally unpassable bills involving Draconian spending cuts that, if passed, would have led to IMMEDIATE social unrest (i.e. rioting). This was pure grandstanding, with not a shred of real intention behind it (even the Tea Partiers, who went off gently into that goodnight with not a peep).
BONER then went back on EVERYTHING he pretended to represent by going along with this PATHETIC LIE OF A DEAL, which in essence is simply more of the same. Wall Street once again ruled the day, paying off its “bitchez” in the White House and Congress to get them to continue hyperinflating the currency, which is exactly what $2.1-$2.4 trillion of debt (just the “official”, on balance sheet amount) with no spending cuts entails. Not to mention, with the economy now in full freefall mode (remember Friday’s GDP number), you can bet that OVERT QE3 will be announced sometime by this fall, along with the COVERT QE3 going on in earnest (illegally, of course) as we speak.
OK, next. So I see an article on ZeroHedge this morning titled “The Bipartisan Debt Deal Fact Sheet: A “Victory” For The Republicans, The Democrats And, Of Course, The White House”, and I’m thinking, “YOU’RE KIDDING, RIGHT”?!!!!
How is a MASSIVE increase in unfunded debt, amidst the largest sovereign debt crisis of all time (throughout the entire Western world), considered a “victory?” Yes, as I’ve noted for some time now, the Washington/Wall Street-corrupted media has been spinning this situation as a crisis only in terms of potential near-term default, setting up a sharp near-term “relief rally” following closure of a “deal” to keep the government running (of course, given that every aspect of the market is manipulated, from the stock market to currencies to interest rates and, of course, Precious Metals, there should no longer be ANY conclusions made from market movements). But irrespective, per this PREMEDITATED SCHEME by the PPT, stock futures are up sharply, enabling the media to claim that somehow $2.1-$2.4 trillion of new debt is a “victory”, even though just two days ago, for instance, the Republicans staunchly maintained that they would NEVER allow a debt ceiling increase without the aforementioned draconian cuts.
Of course, gold and silver were attacked immediately including, if you can believe this one, another SILVER MARGIN INCREASE LAST NIGHT (http://silvergoldsilver.blogspot.com/2011/07/here-we-go-again-ib-raised-silver.html) per the scripted game plan. I.E., PAPER derivatives were used to enable the media to spin the recent rises in Precious Metal as due solely to DEFAULT fears, when in actuality they have been rising, as always, due to ongoing INFLATION fears. Most of gold’s losses have already been recouped in the past few hours, by the way, and don’t be surprised to see new all-time highs by the time GATA Gold Rush commences on Thursday night.
The sad thing, however, is that despite the initial Cartel/PPT/ESF goosing of the dollar last night (including as blatant an intervention into the dollar/yen as I have EVER seen), the dollar index is now DOWN for the day, to the alarmingly low level of 73.6 (losing essentially all its overnight gains versus the yen, for instance), just 2% above the all-time low level. ALL other commodities are up due to the hyperinflationary implications of this travesty, and rest assured gold and silver will be shortly as well.
TO CONCLUDE, I CANNOT EMPHASIZE MORE HOW HORRIBLE THIS DEBT EXPLOSION SCHEME IS FOR AMERICA. THE ENTIRE WORLD IS NOW 100% CRYSTAL CLEAR THAT HYPERINFLATION IS THE NATIONAL POLICY, AND MY PERSONAL FORECAST FOR THE TIMING OF THIS TRADGEDY HAVE NOT BEEN MOVED UP EVEN FURTHER, IF THAT SEEMS POSSIBLE. IN OTHER WORDS, THERE IS NO WAY WE WILL AVOID SEEING THE INITIAL EFFECTS OF ACCELERATED INFLATION DURING THE SECOND HALF OF 2011, AND NO WAY AMERICA SURVIVES THROUGH 2012 BEFORE THE FULL EFFECTS OF SUCH A CATASTROPHE ARE UPON US.
UNLESS YOU WANT TO BE PART OF THE “UNWASHED MASSES” (AS WASHINGTON AND WALL STREET THINK OF US) SCRAMBLING TO SURVIVE WHEN THE COSTS OF FOOD, ENERGY, HEALTHCARE, AND OTHER LIFE NECESSITIES ABSOLUTELY EXPLODE IN THE COMING YEAR, YOU MUST CONSIDER PUTTING A LARGE PROPORTION OF YOUR SAVINGS INTO PHYSICAL GOLD, SILVER, FOOD, LIFE NECESSITIES, AND ITEMS OF REAL VALUE (AMMUNITION, LIQUOR, ETC.).
THE END GAME HAS IN FACT ARRIVED, AND WE ARE ALL ABOUT TO EXPERIENCE A MAELSTROM OF INFLATION UNPARALLELED IN HISTORY!
Important Debt Ceiling Update
President Obama just announced late this evening that a deal has been reached to cut government spending and raise the debt ceiling in order to avoid a debt default. If the deal is approved on Monday, it will raise the debt ceiling by between $2.1 and $2.4 trillion in three installments: $400 billion immediately, $500 billion this fall subject to a disapproval vote by Congress, and $1.2 to $1.5 trillion more after a special committee agrees on a matching amount of spending cuts that will be in addition to $900 billion in spending cuts proposed in the bill. With no tax increases included in this plan, all of this additional debt will eventually be monetized and paid for through monetary inflation.
Although the deal is supposed to cut as much as $2.4 trillion in spending over the next decade, Obama said that none of the spending cuts will occur anytime soon so that not to derail the phony economic recovery. That’s right, none of the cuts will come until early 2013 and by then we will need to once again raise the debt ceiling to north of $20 trillion. If our elected representatives were serious about cutting spending, they would have the bulk of the spending cuts now and not in the future when many of them will be out of office.
This deal is a complete and total sham, and will do nothing to prevent hyperinflation. In no way will these spending cuts be mandated and nothing will force future Congresses to abide by them. Even with these cuts, government spending is going to increase every single year for the next decade. As price inflation spirals out of control in the years ahead causing the purchasing power of the dollar to plummet, all government employees will demand higher salaries and it will cost more to run all parts of the government. Future Congresses will raise spending and make the spending cuts proposed in this deal meaningless.
NIA believes that all of the events that took place in Washington this weekend were scripted in advance. It is likely that both parties knew from the beginning what deal they would ultimately agree to, but came out with these other proposed bills in order to satisfy tea party supporters and make them think that their efforts are making a difference. The reality is, although the tea party movement helped Republicans take over the House of Representatives so that Democrats didn’t have free rein in Washington, most of the new Republicans elected to Congress haven’t followed through with their promises and have failed to make any kind of a positive difference.
Everybody in Washington assumes that interest rates will remain at artificially low levels for the rest of this decade. The interest rate that the U.S. paid on its total marketable debt in the month of June was only 2.38%. Exactly one decade earlier, in June of 2001, we paid 6.162% interest on our total marketable debt or 159% higher than current average interest rates. On August 15th we owe our next interest payment of approximately $30 billion. Imagine if that payment rises 159% higher to $77.7 billion or $932.4 billion annualized. Later this decade, interest rates will not only rise back to normal levels like we had in 2001, but will likely rise to artificially high levels to balance out the damage being created today from artificially low interest rates.
If this bill is approved by Congress and the President on Monday, it will avoid a short-term honest debt default but just about guarantee a default by inflation later this decade. There is about a 1 in 1,000 chance that future Congresses will stick with the spending cuts in this bill, but even if they do, rising interest payments will not only wipe out the $2.4 trillion in spending cuts, but they will add trillions more to future deficits and the national debt. A new Gallup Poll shows that 53% of Americans oppose raising the debt ceiling compared to only 37% who favor an increase. We pray that millions of Americans march to Washington tomorrow in protest of this bill and that millions more call, email, and fax their elected representatives in the morning demanding that they vote no.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us.