An American homeowner comes home to find his sewage system has backed up into the house. In fact, the sewage is now up to the ceiling. The homeowner is inclined to pump out the crap but before he does, he calls his local congressman to ask what he should do and if there is any Federal assistance programs available to help cover the costs. His congressman informs him that there are many Federal assistance programs he could apply for but rather than go that route, the congressman tells him not to bother with the sewage issues, just raise the ceiling.
Is it just me or does it not strike you as odd that the debt ceiling continues to be raised every time it is hit. Why do they continually refer to as a ceiling if it keeps rising, maybe they should call it a debt threshold. Once it gets hit, you negotiate a new higher threshold. Washington has continually misled voters and the voters need to wake up and stop the nonsense that takes place daily.
If this were a stock, market experts would be warning you of the “debt bubble” as it is well into the parabolic stage. There is little, if any doubt it can no longer be sustainable and it will end some time in the next 5 years. TheUSeconony can no longer grow its way out of the debt spiral.
- The U.S. Government defaults on its debt – not likely
- The U.S. Government stops debasing its currency – not likely
- The US Government stops spending and gets its house in order – not likely
Conclusion: Gold will be the preferred currency of choice for investors and central banks that no longer want to be debased. Is it any wonder foreign purchases of U.S Governemnt debt continue to drop and are now offset by US Fed purchases of debt. As Winston Churchill once said ” You can always count on Americans to do the right thing after they’ve tried everything else”
U.S. Debt Ceiling = a target that is always met. Call it what it is.. “the US debt objective”