Last week, Miles Franklin’s Bill Holter penned a missive titled “It was… “fun to have fun!””; postulating the following:
As for the debt ceiling…Treasury Quietly Warns: ‘Expect Debt Limit to Be Reached Near End of 2012’…there is no question it will be raised – and possibly even eliminated. I say “eliminated,” because raising the limit every year has become embarrassing; and there is no point anymore pretending there is a “limit”. Bernanke has already made it clear “infinity” is the limit to QE, so the Treasury might as well join the festive ride!
Embracing the time-honored principle of Occam’s Razor, Congress – like the Fed – will take the easiest way out. Eliminating the debt ceiling will indeed reduce government “embarrassment”; as it become downright annoying to argue like children every year or so. After all, if you can just PRINT as much money as you’d like, what’s the point of having a debt “limit” at all?
Of course, this is where REALITY tends to show its face; as it did last year, when the “debt ceiling debacle” catalyzed crashing stock markets, the stripping of America’s
“Triple-A” credit rating, and gold prices surging to ALL-TIME HIGHS.
To counter the forces of REALITY, TPTB simply stepped up their market manipulations; such as “OPERATION PM ANNIHILATION I” on September 6th, 2011 – when “DOLLAR-PRICED GOLD” achieved an ALL-TIME HIGH, and the Swiss National Bank DEVALUED the Franc by 9%…
Unfortunately, masking reality with market manipulation only ensures the ultimate MELTDOWN will be catastrophic. That is, if – or more likely, when – the debt ceiling is eliminated, TPTB will have to work exponentially harder to prevent the RAMIFICATIONS of surging, limitless, printing-press-funded debts from expressing themselves on BOTH Wall Street and Main Street. They cannot possibly win, but this is what trapped rats on a sinking ship inevitably do – scurry for the highest ground, even if the “highest ground” is ALREADY UNDERWATER…
In my view, eradicating America’s $16.394 trillion debt ceiling before it is breached – likely next month…
…would be nothing short than issuing a “license to hyperinflate”; in essence, PUBLICLY ADMITTING the government’s intention to take the “DEBT CEILING TO INFINITY.”
If this occurs, I STRONGLY believe the demise of the GLOBAL FIAT CURRENCY REGIME will be nigh; and by “nigh,” I mean imminent!
PROTECT YOURSELF, and do it NOW!
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