youtube.com/watch?v=iJ-DET5XUsE 264 ------ 305 ---- 333 ----- 436 We are confusing TWO DIFFERENT THINGS: - U.S. Gov't DEBT CEILING - DEFAULTING on U.S. GOV'T DEBT. The U.S. Gov't debt ceiling is THE OFFICIAL LIMIT the Gov't is ALLOWED TO SPEND: it has "NOTHING" TO DO with whether of NOT it has that money to spend. Raising U.S. GOV'T DEBT ceiling does NOT mean the U.S. Gov't is "spared" from defaulting on its DEBT. Defaulting on its DEBT has EVERYTHING TO DO with ... - THE DEMAND for its T-BILLS: the demand is NOT there - THE GOV'T HAVING LESS + LESS TAX REVENUE - as more + more businesses close - + more + more people lose their jobs This means the U.S. Gov't "will" default on its $32 TRILLION debt: it does NOT have THE necessary MONEY to do otherwise. AND WHEN IT DOES (+ IT WILL): the U.S. DOLLAR will FALL! HOW FAST? That will determine "HOW FAST" AMERICANS BECOME POOR. You're looking at 3 cents Canadian to ONE U.S. DOLLAR. :D However, by KEEPING INTEREST RATES HIGH the Gov't has been able - SO FAR - to keep the U.S. DOLLAR STRONG! It is IMPORTANT TO NOTE: the HIGH U.S. INTEREST RATES have NOTHING TO DO WITH INFLATION, but EVERYTHING TO DO WITH KEEPING THE U.S. DOLLAR STRONG. That strategy works AS LONG AS THE DAM can HOLD BACK THE WATER (i.e. THE U.S. GOV'T HAS THE necessary MONEY to continue as usual, but it doesN'T.) THAT ADMISSION THAT THE U. S. GOV'T is "seriously" short money to the point that it canNOT HONOUR ITS DEBT OBLIGATIONS becomes "THE" PIVOTAL MOMENT in U.S. economic history. THAT ADMISSION means THE STATUS QUO no longer works. So what is the U.S. Gov't going to do about it, eh? Sit back + laugh? (Ha! Ha!) Ken, Toronto, CANADA