Author Topic: Congress to eliminate the debt by not counting it anymore  (Read 517 times)

0 Members and 1 Guest are viewing this topic.

Offline rangerrebew

  • America defending Veteran
  • TBR Contributor
  • Hero Member
  • *****
  • Posts: 57,400
  • “It’s easier to fool people than to convince them
Congress to eliminate the debt by not counting it anymore
« on: November 01, 2013, 06:35:55 AM »
Congress To Eliminate The Debt By Not Counting It Anymore...

Submitted by Simon Black of Sovereign Man blog,



You know the old rule of thumb about laws–

The more high-sounding the legislation, the more destructive its consequences.

Case in point, HR 3293– the recently introduced Debt Limit Reform Act. Sounds great, right? After all, reforming the debt seems like a terrific idea.

Except that’s not what the bill really does. They’re not reforming anything. HR 3293′s real purpose is to authorize the government to simply stop counting a massive portion of the US national debt.

You see, one of the biggest chunks of the debt is money owed to ‘intragovernmental agencies’.

For example, Medicare and Social Security hold their massive trust funds in US Treasuries. This is the money that’s owed to retirees.

In fact, nearly $5 trillion of the $17 trillion debt (almost 30%) is owed to intragovernmental agencies like Social Security and Medicare.

So now they basically want to stop counting this debt. Poof. Overnight, they’ll make $5 trillion disappear from the debt.

On paper, this looks great. But in reality, they’re setting the stage to default on Social Security beneficiaries without causing a single ripple in the financial system.

Remember, when governments get this deep in debt, someone is going to get screwed.

They may default on their obligations to their creditors, causing a crisis across the entire financial system. Or perhaps to the central bank, causing a currency crisis.

But most likely, and first, they will default on their obligations to their citizens. Whatever promises they made, including Social Security, will be abandoned.

And if you read between the lines, this new bill says it all.

Not to be outdone by the United States Congress, though, the International Monetary Fund recently proposed a continental-wide ‘one off’ wealth tax in Europe.

Buried in an extensive report about Europe’s troubled economies, the IMF stated:


“The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair).”

In other words, first they want to implement capital controls to ensure that everyone’s money is trapped. Then they want to make a grab for people’s bank accounts, just like they did in Cyprus.

The warning signs couldn’t be more clear. I’ve been writing about this for years. It’s now happening. This is no longer theory.

Over the last few weeks I’ve been having my staff revise a free report we put together two years ago about globalizing your gold holdings.

In the report I mentioned that capital controls are coming. And that some governments may even ban cash transactions over a certain level.

These things have happened. Cyprus has capital controls, France and Italy have limits on cash transactions. And given this new evidence, it’s clear there’s more on the way.

Every rational, thinking person out there has a decision to make.

You can choose to trust these politicians and central bankers to do the right thing.

Or you can choose to acknowledge the overwhelming evidence and reduce your exposure to these bankrupt western countries that will make every effort to lie, cheat, and steal whatever they can from you… just to keep the party going a little while longer.

It’s time for people to wake up to this reality. You only have yourself to rely on. Not the system. Not the government. And certainly not the bankers.

http://www.zerohedge.com/news/2013-10-29/congress-eliminate-debt-not-counting-it-anymore
« Last Edit: November 01, 2013, 06:37:02 AM by rangerrebew »
There is danger from all men. The only maxim of a free government ought to be to trust no man living with power to endanger the public liberty.
Public virtue cannot exist in a nation without private, and public virtue is the only foundation of republics. There must be a positive passion for the public good, the public interest, honour, power and glory, established in the minds of the people, or there can be no republican government, nor any real liberty: and this public passion must be superior to all private passions. John Adams

Online 240B

  • Lord of all things Orange!
  • Hero Member
  • ****
  • Posts: 6,137
Re: Congress to eliminate the debt by not counting it anymore
« Reply #1 on: November 01, 2013, 07:32:45 AM »
This is classic human behavior. Any financial consultant will tell you that the most common reaction to overwhelming debt by almost everybody, is to stop opening the bills, stop answering the phone, and more or less ignore it. It is a form of self serving, irresponsible denial, but it is very normal.
 
Believe it or not, it is quite common for people facing bankruptcy to go on crazy shopping sprees, buying everything they have ever wanted. Some call this, forgive me please but it is a real term, the 'F**k it!' stage. Once they get to this stage, they have essentially given up and their behavior becomes irratic and irrational.
 
Of course people and buisnesses do not have access to massive fleets of printing presses which can belch out as much money as they want like the government, but even with this advantage, it would seem the American government is in the final stages of a financial crisis.
 
Once a person hits the denial and ignore stage, nothing good happens after that. The first precept of financial responsibility is to constantly count your money and your debt. If you always know where you stand, you can avoid potentially disasterous problems before they develop. When it comes to your money, ignorance is certainly not bliss.
 
Of course with the government, it is not really 'their' personal money, so who cares?
You cannot "COEXIST" with people who want to kill you.

Offline rangerrebew

  • America defending Veteran
  • TBR Contributor
  • Hero Member
  • *****
  • Posts: 57,400
  • “It’s easier to fool people than to convince them
Re: Congress to eliminate the debt by not counting it anymore
« Reply #2 on: November 01, 2013, 07:34:45 AM »
 goopo :0012:
This is classic human behavior. Any financial consultant will tell you that the most common reaction to overwhelming debt by almost everybody, is to stop opening the bills, stop answering the phone, and more or less ignore it. It is a form of self serving, irresponsible denial, but it is very normal.
 
Believe it or not, it is quite common for people facing bankruptcy to go on crazy shopping sprees, buying everything they have ever wanted. Some call this, forgive me please but it is a real term, the 'F**k it!' stage. Once they get to this stage, they have essentially given up and their behavior becomes irratic and irrational.
 
Of course people and buisnesses do not have access to massive fleets of printing presses which can belch out as much money as they want like the government, but even with this advantage, it would seem the American government is in the final stages of a financial crisis.
 
Once a person hits the denial and ignore stage, nothing good happens after that. The first precept of financial responsibility is to constantly count your money and your debt. If you always know where you stand, you can avoid potentially disasterous problems before they develop. When it comes to your money, ignorance is certainly not bliss.
 
Of course with the government, it is not really 'their' personal money, so who cares?
There is danger from all men. The only maxim of a free government ought to be to trust no man living with power to endanger the public liberty.
Public virtue cannot exist in a nation without private, and public virtue is the only foundation of republics. There must be a positive passion for the public good, the public interest, honour, power and glory, established in the minds of the people, or there can be no republican government, nor any real liberty: and this public passion must be superior to all private passions. John Adams

Offline katzenjammer

  • Hero Member
  • ****
  • Posts: 2,513
Re: Congress to eliminate the debt by not counting it anymore
« Reply #3 on: November 01, 2013, 08:43:17 AM »
Didn't get to read the whole post at ZH so maybe it gets into the "real" story on the "total" debt, "real" annual deficits, and the enormous elephant in the room, the Unfunded Liabilities.  John Williams has a great free comparative report (http://www.shadowstats.com/article/no-500-special-commentary-us-government-gaap-based-2012-financial-data) that clearly illustrates how fedgov is "accounting" for all of the above now, versus how it should be accounting like almost every other entity using Generally Accepted Accounting Principles (GAAP).  His summary is well done, understandable by non-accountants, and not too long in length.  But it will change how you view and listen to people prattle on and on about the debt.... 

(ETA: It's Friday, if you want to maintain a chance to enjoy your weekend, bookmark that Williams link and don't read it until Monday!!   :silly:  )
« Last Edit: November 01, 2013, 08:53:10 AM by katzenjammer »


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf