U.S. Treasury Warns of What's to Come: "Catastrophic Effect... Could Last for More Than a Generation"
The
next time someone tells you that the US government is operating in a
fiscally sustainable manner and that our economy is growing strongly
point them to the latest report from the U.S. Treasury Department.
According
to the new report released yesterday all of our worst fears may soon be
realized should the United States default on its obligations to
creditors, employees, and recipients of state-sponsored benefits.
The
report details the consequences of Congress failing to raise the debt
ceiling so that the government can borrow more money. The political
impasse will likely be resolved in the 11th hour just as it has been
during prior showdowns. But, the report has much broader implications.
This
is nothing short of an official admission and confirmation of the
decades' long woeful mismanagement of U.S. economic, fiscal and monetary
policy.
Here's what you can expect to happen on that fateful
day when our government is no longer extended the credit it needs to
cover its trillion dollar commitments:
"In the event that a
debt limit impasse were to lead to a default, it could have a
catastrophic effect on not just financial markets but also on job
creation, consumer spending and economic growth," the report said.
"Credit
markets could freeze, the value of the dollar could plummet, US
interest rates could skyrocket, the negative spillovers could
reverberate around the world, and there might be a financial crisis and
recession that could echo the events of 2008 or worse."
...
"Considering
the experience of countries around the world that have defaulted on
their debt, not only might the economic consequences of default be
profound, but those consequences, including high interest rates, reduced
investment, higher debt payments, and slow economic growth, could last
for more than a generation," the report states.
Via: Yahoo and HuffPost
While
all the political hoopla in Congress will eventually lead to an
agreement on raising the debt ceiling, the fact is that we are very
quickly approaching our limit as a nation.
At some point our
creditors are going to pull the plug. They understand that the $200
trillion in obligations we have will never be met. Countries like
Russia, China, and even the private central banking conglomerates are
positioning their chess pieces right now for when this day comes.
The
end result is going to widespread financial and economy destruction, a
meltdown of the U.S. dollar, and a collapse of our very way of life as
tens of millions of Americans will be instantly impoverished.
Economic
analyst John Williams has warned that when it does finally happen, we
can fully expect disruptions to our food supplies and the normal flow of
commerce.
Without the U.S. dollar as a viable mechanism of
exchange, such a scenario could very quickly lead to civil unrest,
violence, and widespread looting. While most Americans may deny that the
possibility exists, it's exactly the scenario that U.S. Homeland
Security experts and the Pentagon have been simulating for years.
The
U.S. Treasury Department has confirmed it can happen. The military and
DHS are actively war-gaming contingency plans and stockpiling
ammunition, recruiting soldiers for interment operations, and arming up
local police forces. Furthermore, governments around the world are
training for it.
Take their lead, and do the same on an
individual level by developing your own long-term preparedness plan. Set
aside food in case it is no longer available at grocery stores. Save
some gold and silver to utilize as a mechanism of exchange should the
dollar crash. Learn to use a firearm and have ammunition on hand to
defend yourself when the masses start fighting for whatever resources
remain.
While the timing of the Treasury Department's report is
designed to instill fear in the American public, understand that raising
the debt ceiling will do absolutely nothing to resolve the underlying
issues we face and the consequences that will eventually be realized.
