Today the Federal Imperium will raise the debt limit once again 1.9 TRILLION dollars.
That’s one thousand, nine hundred billion dollars.....
Has the Obama administration and the Pelosi/Reid Congress lost their collective minds?
Have any of you out there realized that every penny of this money must be borrowed, that the Treasury of the United States must go out and act like Dickens character Oliver Twist, hold out their alms bowl and ask the world “Please sir, may I have some more?”
How utterly irresponsible.
His Majesty Obama and the Imperial Congress have spent more money than any administration and congress, or set themselves up to exercise the ability to spend more money in less time than any group of individuals has ever done in the history of mankind.
There is an interesting question that needs to be asked and answered, however.
With our largest creditors like China, the Arab oil monarchies and Russia divesting themselves of holdings in dollars, the question begs, who is going to lend us the money?
Who is going to buy all those T-Bills?
Back in 1994, the Clinton Administration floated (leaked) a plan to force private pensions to give up their cash by forcing them to buy T-bills instead of private securities. They were going to, in effect, force them to buy government securities. Now it looks like that plan, which Clinton abandoned, may be on the table again.
With the world looking at U.S. Government debt instruments as so many junk bonds, rumors persist that Nancy Pelosi and Harry Reid may be after your pension funds. They may be setting the stage to rape the cash from your 401K’s and your other private pension savings (IRA’s or other plans) and use the power of the Federal Government to force them to give them the cash for T-Bills.
How would you like that?
How would you like to be forced to buy federal debt that other world governments won’t buy because they don’t trust our government and its financial policies?
What excuse will they use?
They will use the excuse that they love and care about you and they want to they want you to have a “guaranteed stream” of income and that T-bills are a great investments and that they are going to “ensure” that you get a great return on your plans by requiring private plans to contain a percentage of T-bills into their private portfolios. The question is what the percentages will be and when it will happen. The word on the street is that the plan will happen prior to the 2010 midterm elections.
Why you may ask?
Because the Democrat leaders know that in November, 2010 the real possibility exists that they will loose so many seats in the congress that they will be unable to force such a measure through like they are attempting to do with the health care bills.
So... How is that “Hope” and “Change” looking for you now?