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The U.S. Government plans to sell millions of barrels of oil from the Strategic Petroleum Reserve starting in 2018 as means of raising cash in order to help fund the massive and growing spending deficit – Bloomberg LINK.
This is part of the new budget deal which has been agreed to between the leaders of Congress and the Obama gang but still needs full approval from the House and the Senate.
But given that the general consensus in mainstream America that gold is no more useful than a Pet Rock, why not unload part of the alleged U.S. gold holdings rather than a useful, strategic asset like oil? By now everyone who cares to examine the issue understands that the U.S. Government has endorsed and supported an aggressive program being executed by the Fed and the big Wall Street banks to suppress the price of gold at any cost.
Why not let the gold market engage in unfettered price discovery and then sell some Treasury gold instead of oil? Even at today’s price, if the U.S. were to sell a mere 1000 tons – or just 12% of its alleged 8100 ton stash of gold – it would be able to raise $37 billion. If the gold is really there and it’s just collecting dust why not sell the gold?
The answer is pretty obvious…the gold is not there to sell – just ask the German Government…
Spend and they will borrow or print money to fund it. The debt ceiling limit currently is $18.1 trillion. This number is 101% of the Government over-estimated GDP. If you add in the $7 trillion of taxpayer guaranteed Fannie Mae and Freddie Mac mortgage debt, the true directly funded level of Government debt is about $25 trillion, or 138% of the overestimated GDP.
The Treasury hit the debt ceiling limit earlier this spring. Since then Jack Lew has been borrowing cash from various “pools” of dedicated Government spending accounts, like Social Security and the Federal Employee Pension Plan (but not the Congressional Pension Plan, of course). Lew was on CNBC a couple days explaining that his “smoke and mirror” tactics are now exhausted and if the debt ceiling is not raised, the Government will default on obligations.
But this is nothing more than a production of political Kabuki theatre. The Senate I’m sure will rubber stamp any spending and debt plan that Obama sticks under its nose. But the House is controlled by Republicans with an agenda – not to force spending cuts and actually reduce the rate at which the taxpayers accumulate more debt – to use this crisis in order to force the passage of their fanatical military, political and moral legislation du jour.
The truth is that ultimately a new debt ceiling limit will be established and the Government will continue printing and borrowing printed money from other Governments in order to continue on its historically unprecedented rate of growth in spending. Mind you, this is spending mostly on programs which are used to transfer wealth from the middle class to the big corporations and wealthy elitists.
The fact that Paul Ryan is willing to step up and assume the Speaker of House role if certain of his pre-conditions are met tells me that the behind the scenes politicking and deal-making has already been largely accomplished. Now it’s simply of matter of the Government utilizing the media to apply a heavy dose of scare-mongering so that the sheeple in this country can lose a little sleep before getting the relief of an eventual agreement which should take the new debt limit over $19 trillion. Rest assured that this “crisis” will pass and no one will miss a swipe on their EBT card and the Pentagon can continue funding its terrorist activities around the globe.
The middle class in the United States has been badly misled into thinking that way of life and standard of living that has been experienced in this country will last forever. But do any of you finding yourself cringing when you hear friends or near-by strangers with young kids discussing where they hope to send their kids to college?
I am predicting that 5-yr olds in this country will never have that opportunity.
The middle class has been embued with such a strong sense of entitlement that they are blinded to the massive “two-by-four” that is being swung at the back of their heads. By the time they see it coming, it will be too late to duck.
There is a strong possibility that the entire world is headed for “The Road.” Short of that outcome at the end of what is unfolding, life is going to become medieval for everyone. The SGT Report invited me on to discuss the issues connected to what is beginning to unfold more quickly in the world, including the possibility that the precious metals may soon become unavailable through retail channels except at extremely high premiums:
The other day I was wondering what happened with the March 16 deadline facing the Government on its “suspended” debt ceiling limit. March 16 had come and gone without any media fanfare. It’s almost as if the White House demanded silence from the media on this.
So I googled the topic and found out that the debt ceiling limit was reset to $18.113 trillion. That is $1 trillion above where the outstanding debt was one year ago. But didn’t Obama tell us that the spending deficit in 2014 was only $483 billion? Pourquoi? If the amount of debt outstanding increased by a trillion, how can he claim the spending deficit was only $483 billion? Because he is a liar.
So Congress quietly approved raising the debt ceiling limit to $18.1 trillion and now the Treasury debt outstanding has busted through that ceiling: $18.152 trillion and counting.
For now the criminal Treasury Secretary, Jacob “Jack” Lew, is implementing a bunch of “legal” accounting moves that let him continue signing checks to pay the Government’s zealous overspending. “Accounting moves?” Sound more like a Ponzi scheme. What this means is that Lew is tapping into various dedicated trusts which has meager surplus levels of cash – like the Federal pension fund and the Social Security trust – in order to pay bills. But this avenue will hit a wall this year and then Congress will have to deal with the debt ceiling limit again.
It’s a truly sad, Orwellian state of affairs when the Government’s ability to continue issuing Congressional paychecks and welfare EBT debit cards boils down to accounting gimmicks…this country is pathetic (source: King World News):