October 21, 2013
The US can now collectively breathe a sigh of relief that we’ve averted the “debt ceiling debacle.”
The only problem is that this entire “crisis” was a lie. The US actually hit its debt ceiling back in May 2013, a full five months ago.
At that time neither the Treasury Department, nor the White House, nor Congress talked about this.
So for five months, the US debt level was frozen. The reason was because the Treasury was resorting to “extraordinary measures” to keep us below the debt ceiling. It’s interesting that no one in the media talked about this, nor that anyone seemed to care at all.
Then, suddenly we had yet another “crisis” in which the world would literally end if the political class didn’t get their way. The US would default if we don’t spend more money now!
Our President and other political “leaders” fussed about this for two weeks and basically wasted all of our time. The whole exercise was totally pointless outside of setting up an “issue” on which to campaign for the 2014 Congressional elections.
How do I know it was pointless?
Because the deal they made doesn’t raise the debt ceiling. All it did was make the debt ceiling unenforced for a few months… until February 17 2014 specifically.
So we hit the debt ceiling in May… manufactured a crisis in October… just to ignore the issue another three months…
THIS is the state of Government in the US today. The fact the media in this country goes along with this as “news” tells you everything you need to know about the “objectivity” of the fifth estate.
If you want to talk about a real debt crisis, let’s talk about the US Federal Reserve.
The Fed’s current balance sheet is $3.86 trillion. It will be over $4 trillion before the end of 2013 and over $5 trillion before the end of 2014.
THE FED is the debt problem. It is allowing the deficit and the debt to swell like this for the sake of benefiting a handful of banks and screwing the economy. QE doesn’t create jobs. It never has.