Lost in the Debt Ceiling Debate

(Why increase debt, when it can all be retired, instantly!)

Silver Stock Report

by Jason Hommel, July 28th, 2011

"--The borrower is the servant to the lender."  Proverbs 22:7

There is no need for the government to borrow more money to be able to make payments on old debt. 

The US Treasury does not need to borrow from the Federal Reserve.  The US government does not need to "serve" the Federal Reserve.

The US Treasury can be authorized by Congress to print US Treasury notes (money) directly, like they used to do, and stop issuing Federal Reserve Notes.

In fact, all of the US debt can be retired entirely, all of it could be paid back immediately, merely by issuing new US Treasury notes (money, bills, dollars).

Oh, this was just suggested today, as I was writing this:

3 ways Obama could bypass Congress
By Jack M. Balkin, Special to CNN
July 28, 2011 10:48 a.m. EDT:


" A little-known statute gives the secretary of the Treasury the authority to issue platinum coins in any denomination. So some commentators have suggested that the Treasury create two $1 trillion coins, deposit them in its account in the Federal Reserve and write checks on the proceeds."

Or, as I note, 14 of them!

The sun would not stand still, buildings would not collapse into their footprints, life would go on, inflation would continue, default would be averted, and the $14 trillion or so of total US government debt could be gone.  GONE!

And the debt should be gone.

A government is instantly subverted and overthrown the instant it goes into debt.  Why?

Because a government in debt serves the lender, rather than serving the people.

A government in debt has a conflict of interest!

Anyone loaning money to the government should actually be guilty of treason, for having successfully overthrown and subverted the national interest of serving the people, first.

I sincerely believe that a debt cap is not what the nation needs, although I believe it would be better than raising the debt ceiling as they always do.

The nation needs a spending cap, and much more, it needs dramatic spending reductions.

Every bit of money that the US spends is not only wasted, but actually harms the economy in multiple ways far more insidiously than most writers recognize and can articulate.

This morning a democrat in the house on C-Span was saying that the government needs to "invest" in schools, health care, infrastructure, and jobs, rather than "cut, cap, and balance".

All of that would be a mistake.

Government money spent on schools is worse than if the government spent nothing at all.  Government teachers have an inherent conflict of interest; they will rarely teach against the concept of government, like the Bible does, because they get their pay from the government.  Government schools are propaganda for more government.  That's bad.  Government schools are a monopoly of government schools, which mean there are little to no real incentives to teach students any better.  So, the kids get less knowledge, or inaccurate knowledge, if any at all.  Both are bad. 

The solution would be a government that prosecuted any other governmental entity, Federal, State, County, or City, that spent any money at all on education, banning it in the nature of violating the "establishment of religion (of government)" clause of the first amendment!  The solution is free market based educational solutions; teachers that earn their money directly from the parents who will naturally choose the best for their children.

The democrat said Government should "invest" money in health care?  Even worse than nothing at all!  The problem today is the government granted monopoly on health care supporting the druggers and cutters, while making illegal herbal solutions, or making illegal natural whole foods like unpasteurized unhomogenized whole milk or health claims for walnuts.  The solution is ending all funding for the FDA, and opening up the "modern medical monopoly" to real free market competition from people who offer real healing solutions.

The democrat said government should "invest" in jobs created by government spending on more schools or hospitals?  Even worse than nothing spent at all.  All such jobs would be temporary, another artificial boom, and lead to misallocations of wealth, taken from people who actually created wealth from real jobs, and given to over bloated projects that only make the nation worse off.  The solution is to let those people who produce the jobs, keep the money, so they can expand their businesses, which is the only way that real jobs are ever actually created!

The claims that the nation needs to raise the debt ceiling, or else "the roof will fall in" and other such calamities is totally false.  The debt is a joke.  The debt is nothing, and can be paid off tomorrow with fresh money freshly printed.  After all, it's not like we are on a gold standard here.  (Hint, buy gold, or better yet, silver!)

The real problem is the out of control government spending.  Anything that can reduce government spending will be a boon to the real economy.

Tea Party republicans need to hold strong, and vote against any debt increase.


I strongly advise you to take possession of real gold and silver, at anywhere near today's prices, while you still can.   The fundamentals of silver indicate rising prices for decades to come, and a major price spike can happen at any time.

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    Jason Hommel