US Senate approves gargantuan national debt increase

obama bucks

obama bucks

“The legislation would put the government on track for a national debt of $14.3 trillion—equal to about $45,000 for every American—and provide a vivid reminder of the United States’ dire fiscal straits. New estimates released by the Congressional Budget Office on Tuesday show that the U.S. this year could run a deficit matching last year’s record $1.4 trillion shortfall. “

WASHINGTON (AP) – The Democratic-controlled Senate has muscled through a plan to allow the government to go a whopping $1.9 trillion deeper in debt.

The party-line 60-40 vote was successful only because Republican Sen.-elect Scott Brown has yet to be seated. Sixty votes were required to approve the increase. The measure would lift the debt ceiling to $14.3 trillion. That’s about $45,000 for every American.

What safer investment than investment in Government? It must be very tempting for high level private investment. At that level they are more interested in security than venture. If specific governments see a way to raise money that way, they please those investors but, as the proverb says, the government becomes the slave to the lendor. That interest causes inflation. That inflation may not be immediately apparent as a rise in cost of living, but it is apparent in the enormous economic clout that the lendors receive over time and the disparity between rich and poor.

With that clout they may destroy the nation if they are not careful. Sometimes the more depressed need a tranquilizer in the form of a bailout or they could take the nation down with them. Government at all levels must be freed from debt so the government may truly govern. Pulling the debt back to small, local banks, and away from a centralized bank (like the Federal Reserve or Bank of Canada) is an excellent idea.

Any party that makes that their platform and could advance their reasoning for it, would be a serious threat to the others except they all adopt that platform. Otherwise we may have to rely on the common sense of the rich which isn’t always for the worst, if they have any sense. They may have more than us because they they enslave us with debt and no one complains.

According to the Austrian School of Economics, central banking is responsible for the cause of the boom bust economic cycle because central banks set interest rates too low and cause inflation. According to the Austrian Business Cycle Theory, the business cycle unfolds in the following way. Low interest rates tend to stimulate borrowing from the banking system. This expansion of credit causes an expansion of the supply of money, through the money creation process in a fractional reserve banking system. Source: Wikipedia, 2010.

It might be better for now because our politicians and public lack the sense to even see or understand the truth, and this applies to our media outlets as well. There is always the danger of fascism no matter who holds our debt or even if we have none. That may be the more serious threat. Debt you can pay back, but when they own you for life, that is slavery.

Story continued

Democrats had to scramble to approve the plan, which means they won’t have to vote on another increase until after the midterm elections this fall. To win the votes of moderate Democrats, President Barack Obama promised to appoint a special task force to come up with a plan to reduce the deficit. The House must still vote on the measure before it’s sent to Obama for his signature. You can read the rest of this story at AP news.

2 thoughts on “US Senate approves gargantuan national debt increase”

  1. I find this page to be extremley difficult to look at, much less read. You need to revamp in a big way!

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