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All the hubbub lately in the US is the debate over raising the debt ceiling in the US. It’s so much show, since everyone worth their weight who deals in finance knows this deal will happen, because it has to. It says here that the din you get on the news is there to adjust expectations of Americans as to what their vaunted government has available to them in terms of funds and the services the government will be able to offer. Allow me to reiterate – all the din you get on the news is to tell Americans they can expect less and will pay more to get it.

Obama recently threatened that if their was no deal then there would be no social security cheques sent out. Sure it looks like pressure on the Republicans to get a deal done, but not so explicitly the message is there – US finances are a total mess, and in order to keep things the way they are someone has to pay. You can bet it won’t be the banks…

Getting back to why this deal has to happen – can you imagine what happens if the US doesn’t send out social security payments? That alone will have a massive impact on the US economy let alone to US citizens. And social security payments are only the tip to the iceberg. Pundits are telling us that if Greece defaults it could cause a massive recession all over Europe. If the US were to default, the impact would be felt worldwide, and there’s not enough money out there to cushion the blow. So the deal will happen – what’s scary is that one day the US WILL default, and the bankers will be coming to cash in their bonds, regardless of what dire circumstances lie ahead.

Don’t take my word on it – check out Jim Rogers, investing guru, and his take on the debt ceiling charade:

The Money System – it’s a great scam – and here’s how it works. Private banks around the world deal with private reserve banks in pretty much every country on the planet Earth. With fractional reserve banking, private banks are allowed to loan out over 90% more money than they actually have in their vaults and accounts. They take your $1 deposit and loan out $9, at interest. They’ve made $8 out of thin air and are making points off it. Do this often enough and you end up with every newborn baby born in the US owing about $250K in debt! Every year this number increases – it never decreases, and it’s the same in just about every country in the world. You would think that somewhere someone has to hold the IOUs, and they do – they’re called banks – the same banks that diddled and fiddled with our money and in 2008 needed billions more from taxpayers worldwide lest the economy collapse. The world’s debt can never be repaid (barring some incredible discovery of trillions of currently non-existent assets), because the debt to asset ratio is 10:1 or worse. So the banks make their points on money that truly doesn’t exist and is not backed by anything, and when those debts aren’t repaid they can come and get real assets in lieu of paper money. A great scam indeed.

Any questions or comments – write me at strawman@rogers.com.

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