Raising the Ceiling

The WealthCycles Staff

It happens every few years. A politician, or a politician disguised as an economist, will pronounce that without passing some critical piece of legislation, the country will be a few days from plunging back into the dark ages. It is one of the oldest tricks in the book. In one the saddest aspects of our economic world, the public—not having the time or will to discover the root causes of these economic problems—actually buys into these ploys.

This anecdote comes from G. Edward Griffin’s The Creature from Jekyll Island:

Public ignorance of how the game is really played was dramatically displayed during a recent Phil Donahue TV show. The topic was the Savings and Loan crisis and the billions of dollars that it would cost the taxpayer. A man from the audience rose and asked angrily: "Why can't the government pay for these debts instead of the taxpayer?" And the audience of several hundred people actually cheered in enthusiastic approval!

In 2008 it was Hank Paulson, U.S. Treasury Secretary, who said that $700 billion for TARP, or Troubled Asset Relief Program, which would be needed to avert financial disaster. The original draft of the law allowed Paulson to unilaterally decide which firms needed help and which didn't.

This opened the window for the “bridge loans” and subsequent bailout of General Motors, a company that was in shambles far before the Financial Crisis hit. The rationale was that millions would lose their jobs if GM failed.  

This scam has been going on for decades, and this decade will likely be no different. With the new year come new scams, as Austan Goolsbee, chairman of the President’s Council of Economic Advisers, shows that even the oldest trick in the bailout game can be dusted off and trotted out over and over again. On ABC’s This Week he had this to say about raising the debt ceiling, which is the legal limit of the U.S. government’s total borrowing: 

 “This is not — this is not a game. You know, the debt ceiling is not — is not something to toy with. If we hit the debt ceiling, that’s the — essentially defaulting on our obligations, which is totally unprecedented in American history. The impact on the economy would be catastrophic. I mean, that would be a worse financial economic crisis than anything we saw in 2008.”

The national debt, currently $13.9 trillion ($44,884 per citizen), is quickly approaching the legal limit. The debt ceiling, currently $14.3 trillion, will soon be shattered unless Congress takes action to raise the debt ceiling. As Congress will undoubtedly vote to bail itself out—the unwitting citizens of the U.S. will be pushed further and further in debt. 

it is some depressing to hear this type of stories, yet we cant do anything about it.
Armstrong ceiling tiles

Maybe people should stick together for once, Lets all stop paying our mortgages for starters.
What are they going to do arrest us all??.
We have the power, we always have and will but we just are too lazy to impose it and that is the sad truth.
People need to educate themselves by reading and learning but instead they just watch a game show or soap on the good old Television.
All praise to Michael Maloney for giving us a reality kick.
Good on you mate and many thanks, keep up the good work.

Anonymous UK.

Why must a debt has ceiling??If you are in debt you are in debt.Simple as that..Pay up or risk losing everything...Thats all...

We all have some sort of debt ceiling (most likely called a credit limit for all us non-politicians). The difference is the politicians don't have to pay back the national debt, we do.

It is too bad that most people are clueless about these kinds of things.

We need a complete collapse in this country.
This is a useless debate, it is all smoke and mirrors.

Of course they are going to raise the debt ceiling. They will be all kinds of posturing and debates but in all reality it is already done.

I would welcome a complete economic disaster. I think that is the only thing that would wake up the masses.

Complete economic disaster might "wake up the masses", but it would also create fear. When people are fearful they panic and do not think rationally.

They only think about making themselves and their families secure. Morality and Ethics all but disappear. And they run to people who provide their basic needs, which, in most instances, will turn out to be a dictator. 

It happened in France during the French Revolution in the late 18th Century. In Rome with Cesar. In Russia during the Revolution of 1917 with the Soviets. In Germany in the 1930s with the Nazies.

In our opinion, we need to help educate people and avoid a complete economic disaster as much as possible.

Debt is how the economy runs. Right.... for how long will depend on how long people remain ignorant or uninterested.

American Currency as the world's reserve currency is being increasingly put under pressure to be removed as the world reserve currency because of the increasing debt and the inability of America to pay it debt.

We need to educate and wake up as many people as we can. That is the key.

Idealistically yes, we need to wake up as many people as possible...but what if they don't want to wake up? None (and I mean ZERO) of the people in my social circle (including friends, family members, colleagues, etc) want to hear this stuff, and many of them are critical, educated, open minded thinkers. I've cleared entire rooms when I bring this stuff up. They simply have outdated ideas and beliefs stuck in their heads. Others are so atrophied in their thinking, so ignorant, that they'll even fight to defend the system that destroys their wealth.

I wish and hope for a mass "waking up," but other times I think that nothing short of an all out collapse followed by war and dictatorship would be enough to wake up the sleepwalkers. After all, imagine someone who believes wholeheartedly in the worker's union, high pay for unskilled labor, entitlement programs, the concept of a "country" or a "political party" etc changing their thinking to understanding that gold and silver are money and fiat paper is intrinsically worthless; that countries are just ideas and politics is a 3-ring circus. That is one hell of a leap in thinking...a leap that I fear is just to far for most people to make without some sort of catastrophic event to trigger it.

- Zimbabwe Trillionaire

Your "spot" on there I have the same problem, people just do not want to listen.
They would rather watch soap land and sport on T.V rather than open there eyes and read, learn and educate themselves. Too much being nannied for to long.
I have even stopped strangers and advise them to not sell there gold and silver and buy buy buy, but they look at me as if I am nuts.
All praise to Mike Maloney for his advice and determination. When I sell my share I shall owe you a big drink Mike :) Keep up the great work and may everyone who reads this prosper and pass the word.

Anonymous UK.

I think it is obvious that not everyone will wake up. We can't let that stop us from trying to wake more people up. 

Also, it is difficult to introduce to all of this material overnight to someone. The most common reaction I have found is, your crazy. If you introduce the ideas piece-by-piece you make more headway. 

The analogy would be trying to eat an elephant overnight, or over the course of months.

@Anonymous UK and WC Admin: Great to have a bit of a conversation happening here. All of this reminds me of the "woman in the red dress" conversation between Morpheus and Neo. WC Admin, you make some interesting points. You're right, you can't have the sleepwalkers eat an elephant all in one sitting. So as a process of trying to wake up our friends and loved ones, what process/steps would you suggest? For example, have them watch a few YT videos first, then have a conversation or two, then recommend books? The trouble with this though is that they have to WANT to know more. I'm thinking of my own awakening. For myself, I reached a point where I HAD to know what the heck was going on. Why was a saved dollar in 1970 worth only 23-cents in 2000, for example. What force destroyed that wealth, and how could an honest hardworking person protect themselves from that destruction?

I started small, but wanted to know more. That lead me to numerous books, blogs, and to Mike Maloney.

And Anonymous UK, I know what you mean. It can be frustrating sometimes. Again, sometimes I have hope, other times I get fed up at the level of ignorance. Fine, watch your soap operas and sports...you'll be crushed.

How did you both "awaken?"

- Zimbabwe Trillionaire

BS

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