Yeah, that's working real well, ain't it geniuses?
Posted on 11/11/2010 4:54:37 PM PST by blam
The US is bankrupt. It cannot repay its debts. When that becomes clear, and the public moves from denial to anger, they will seek any justification or excuse to disavow the debt. Such will not be hard to find:
Most Federal spending since the 1930s has been Unconstitutional. Progressive (non-uniform) tax rates are Unconstitutional. Fiat money is Unconstitutional—the Constitution forbids anything other than gold and silver coins being used as “Tender in Payment of Debt.”
So the US could simply revert to the Gold standard, issue a new gold-backed currency, repay its bond holders using the old currency (which the government disavowed as redeemable for gold or anything else back in 1972,) and inform any who object to that it’s their own fault for lending money to an illegitimate government borrowing and spending in violation of its own Constitution, using a currency prohibited as being used as legal tender by that same Constitution.
It won’t be long before this end-game becomes obvious to everyone. It’s the only way out. And it doesn’t even matter whether the rationale for disavowing the debt is valid. People believe what they want and need to believe, and will seize on whatever rationalizations they can find to justify what they want to do. When that happens, the bond market will stop lending any funds whatsoever to the US government, and progressive socialism will die
The only logic I can possibly see in Bernenke’s actions here is maybe he’s betting that the Eurozone will be screwed worse than we are. Not a gamble I would like to make, but I could see it happening.
"Patriots" who bet on America are gonna lose big.
bump
btt
LLS
My neighbor (a 1976 immigrant from New Zealand) told me, "Don't ever bet against the Americans."
Saw something strange not once, but twice today in Austin. We’ve had these ‘sell your gold here’ shops popping up, but today they’d hired sign-wavers to lure ‘em in. On a Thursday at noon.
LLS
Yeah, that's working real well, ain't it geniuses?
Maybe he should follow Beck and study how we recovered from the Panic of 1920. Bernanke sounds one-dimensional and not very smart to me.
YES!
“I pledge my life and my sacred honor for America”... I am not alone...
That’s right - you are not alone - not by a long shot.
I mean it with every ounce of my soul.
LLS
GOD bless you Patriot... we need to remind one another that we are many and we are one.
LLS
I was approached in two different parking lots today by beggars. I refused to give anything to the girl who had on (what must have been) a $300.00 'official' NFL football jacket. (When I told her she shouldn't waste her money on things like that, she cussed me.)
I gave $5.00 to the haggard (but honest) looking guy who said he'd run out of gas. (And, he thanked me politely as he turned away)
“Consumers would like to de-leverage further;”
We are deleveraging and will continue do so. The wealth that was created during the housing bubble was an illusion and a lot of people got burned.
“The trouble then and now is that a unilateral devaluation of the dollar, such as going off the gold standard during the Great Depression, or engaging in QE2, may unleash a toxic set of dynamics.”
Sounds like a Soro plan.
“Similarly, we believe China has pricing power and should not be afraid of allowing its currency to appreciate.”
China will do what is good for China, not Soro.
Yes! Such a classic film!
Too bad the US doesn’t have a stunt double.
No it doesn't.
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