Best of the Week
Most Popular
1.UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - Nadeem_Walayat
2.Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - James_Quinn
3.UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - Nadeem_Walayat
4.Billionaire Investors Backing A Marijuana Boom In 2017 - OilPrice_Com
5.Emerging Markets & Basic Materials Stocks Breaking Out Together - Rambus_Chartology
6.Global Currency Reserve At Risk - Jim_Willie_CB
7.Gold and Silver: Your Stomach Is Probably Wrenching Right Now - The_Gold_Report
8.Warning: The Fed Is Preparing to Crash the Financial System Again - Graham_Summers
9.Basic Materials and Commodities Analysis and Trend Forecasts - Rambus_Chartology
10.Discover Why A Major American Revolution Is Brewing - Harry_Dent
Last 7 days
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17
The Next Tech Crash Could Delay Your Retirement by a Decade - 15th Aug 17
Gold and Silver Precious Metals Nearing Breakout - 15th Aug 17
North Korea Showdown: Pivotal Market Turning Point - 15th Aug 17
Tech Stocks DOT COM Bubble Do-Over? - 14th Aug 17
Deep State Conspiracy or Chaos - 14th Aug 17
From the Trans-Atlantic Axis and the Trans-Asian Axis - 14th Aug 17
Stock Market Intermediate Correction Underway - 14th Aug 17
The Islamic State Jihadi Pivot to Asia - 13th Aug 17
Potential Pivots Upcoming for Stocks and Gold - 13th Aug 17
North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - 12th Aug 17
Gold Stocks Coiled Spring - 12th Aug 17
Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - 12th Aug 17
How to Alton Towers Half Price Discount Entry 2017 and 2018, Any Time, No Pre-Booking! - 12th Aug 17
Top 3 Technical Trading Tools Part 2: Relative Strength Index (RSI) - 11th Aug 17
What Makes Women Better Investors - 11th Aug 17
Crude Oil Price Precious Metals Link in August - 11th Aug 17
Influencer Marketing Predictions All Businesses Should Take Into Account - 11th Aug 17
Really Bad Ideas - Government Debt Isn’t Actually Debt - 10th Aug 17
Gold Sees Safe Haven Gains On Trump “Fire and Fury” Threat - 9th Aug 17
Why Is The Stock Market Not Trading On Fundamentals Lately? - 9th Aug 17
USD/CAD - Can We Trust This Breakout? - 9th Aug 17
New Monthly Rebate to Help Reduce Your Trading Costs - 9th Aug 17
Stock Market Divergences Are Now Appearing! - 9th Aug 17
Is Inflation an issue or did the Fed Mess Up? - 8th Aug 17
Top 3 Technical Trading Tools Part 1: Japanese Candlesticks - 8th Aug 17
Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - 8th Aug 17
What Happened to Thousands of Sheffield's Street Trees 2017 - Fellings Documentary - 8th Aug 17
Solar, Bubble, Banks, War, and Legal Tender: Five Reasons Why You Should Buy Silver Now - 7th Aug 17
CRASH - If Some People Do It, Nothing Bad Happens, But If Everyone Does It, All Hell Breaks Loose - 7th Aug 17
Gold and Silver : The Battle for Control - 7th Aug 17
Precious Metals Sector is on Major Buy Signal - 7th Aug 17
Stock Market - Has Time Run Out? - 7th Aug 17
Get Ready for an Historic Upside Gold and Silver Run - 7th Aug 17
BOOM! Bitcoin Rockets To New All-Time High As Cryptocurrencies Surge Higher! - 7th Aug 17
U.S. Dollar: This Crash Signals the End - 6th Aug 17
Predicting The Price Of Gold Is A Fool’s Game - 6th Aug 17
Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - 6th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

US Debt Ceiling Shutdown: What Would Happen if the Government Shut Down For Good?

Interest-Rates / US Debt Apr 05, 2017 - 12:51 PM GMT

By: Jeff_Berwick

Interest-Rates

It’s that time of year again where the US government acts like it will “shut down” and argues about nonsensical things to try to make people believe they are somehow necessary.

In 2015, Congress suspended the ceiling, which let the government borrow as much as it wanted through March 15, 2017. On that date, the total national debt was $19.846 trillion, and the government can't exceed that limit without approval from Congress.


In the meantime, the government uses all kinds of accounting tricks to shuffle the chairs around on the Titanic and all manner of vultures will be fighting over who gets the bounty of stolen funds extorted from Americans.

This type of thing has been going on for nearly a century.

The very first “debt ceiling” was put in place exactly 100 years ago, in 1917, and nearly every year since then a group of parasites working for stolen money (taxes) gets together in a place called the opposite of progress, Congress, to act like they would ever shut down the very thing that employs them.

It’s an exercise in stupidity, but it does lead to the question, what would happen if the US federal government shut down for good?

In other words, what if the United State(s) actually was the United States… and not the United State.

First, all of the countless wars and occupations undertaken by the Department of Offense would cease. It’d be hard to imagine that the states of Texas, Vermont, and Idaho would feel the need to protect their particular interests in Syria and pay directly for the costs. In fact, it sounds silly, doesn’t it? Could you imagine hearing the news that Idaho had just accidentally blown up a school full of 200 children in Syria while fighting the CIA’s ISIS?

It seems silly because it would be. It’s only through decades of government schooling, pledges of allegiances and hundreds of pro-war propaganda films out of Hollywood every year that makes anyone think the US government occupying half of the Middle East is anything but a massive crime against humanity.

So, with no US federal government, there’d be almost no more war in the world. That alone is a good enough reason to get rid of it.

What else would we lose if the federal government were to shut down for good?

Well, actually, very little else. You see, the US federal government takes almost all the money it extorts US tax slaves for every year and spends it on conducting terrorism (war) and much of the other expenses are just to keep all of its Ponzi schemes running.

The two biggest Ponzi schemes are Socialist Insecurity… or what they call Social Security… and Medicare. These two systems are so bankrupt that they soak in most of the tax revenue and take up much of what is called “mandatory spending” in the budget.

In the “discretionary spending” piece of the pie, the military accounts for a massive part of that expenditure.
And much of the rest goes to alphabet agencies that, for the most part, produce or do nothing and are just massive money pits of communist style, central planning bureaurats. Yes, I spelled bureaurats correctly.

For example, because of the Tenth Amendment, most education policy is decided at the state and local levels, meaning that really, all the Department of Education does is redistribute taxpayer wealth in the form of student loans and government grants. Essentially, they siphon public money and after paying their 4000+ parasitic employees, the rest of the collected money - around 70% - goes toward making loans and grants that should be made in the private market.

Or you could take for example the “Department of Health and Human Services” (HHS) which actually is a major disservice to the American people.

The Department of HHS includes the FDA, CDC, and the National Institutes of Health. And as many now know, the FDA has approved prescription and over-the-counter drugs that knowingly have killed hundreds of thousands of people annually, has allowed an increase in irradiation of the food supply, and to top it off, has covered up the dangers of vaccinations. Not surprisingly, the FDA has ties to companies like Monsanto and Bayer.

And pretty much every other agency of the federal government is similar… either doing nothing that needs to be done or making things worse than they already are.

So, as you can see, if the federal government were to “shut down” for good, all that would really happen is most of the wars in the world would end… which is obviously a wonderful thing… and a ton of communist style central planning agencies would cease to exist freeing up not only the marketplace but a lot of capital that is wasted on these boondoggles.

And, of course, about 2.7 million people with absolutely no skills or capabilities in the free market, former federal employees, would have to find something of value to do for their fellow man.

There would be one massive issue, however. If the US government were to shut down and to renege on its $20 trillion in debt it would cause a worldwide economic and financial collapse and depression that would make the 1929 Great Depression look like the glory days. It would forever be known as the Greatest Depression and people would warn forever more into the future to never allow government to grow to the size of the US government for the devastation it brings when it all inevitably collapses.

Fortunately, the US government reneging or defaulting on its debt is going to happen whether the US government shuts down now or not. It is already past the point of no return.

And that’s why you should be preparing for that eventuality. Whether it happens now, which is unlikely, or happens quite soon, which is 100% guaranteed, you should be preparing for it.

For this reason, we are offering our ebook, Getting Your Gold Out of Dodge completely free. It normally retails for $44.95, but we are offering it for free to help as many as possible prepare for what is coming.

If the US federal government were to shut down and never reappear it would be one of the most wonderful moments in human history. Wars would cease and millions of people currently held in concentration camps in the US for “victimless crimes” would be freed. And trillions in funds would no longer be wasted and could be put to productive use which would cause a worldwide boom unlike any seen before.

But, before that happens we’d have to see a collapse of biblical proportions. Those who are prepared for it, such as TDV subscribers (see more here) stand to not only survive through the collapse, but to profit immensely afterward as they will be some of the very few who make it through the collapse with their assets intact.

In the meantime, the next time someone tells you that they heard the US federal government might “shut down”, tell them, “Good!”

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2017 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife