Why The Debt Ceiling Means Nothing, Yet Everything

February 17, 2018

Over the past month, we have heard a growing roar of dissent and fear as people within the United States and around the financial world worried about a rapidly approaching deadline.

A deadline, that if reached, would spell disaster for all!

This deadline—self-imposed by Congress—is an artificial ceiling put in place to reign in the controls of big government and keep it in check! If it is reached, look out below. Things are going to fall apart and chaos will erupt.

If you haven’t caught on yet, I'm being sarcastic. The debt ceiling means nothing in its current shape and form.

For decades, this artificial ceiling has been raised time and time again—at a faster and faster rate—as the United States expanded its global empire, supplanted governments and placed so many military bases around the world it would make the Roman Empire blush.

For decades, it has been utterly useless. Yet, you wouldn't know this if you were listening to the Mainstream Media over the past month, who have been absolutely hysterical about this approaching deadline. Which they have barely bothered to notice over the last eight years.

Odd indeed.

So what has changed?

The answer is obvious. Trump has changed.

Since being elected, the debt ceiling has been of particular interest to the MSM as they are, by and large, almost exclusively left-leaning. This is OK in and of itself, and it is good they are finally starting to inform the general public about this ticking time bomb. But their intentions are obvious and, therefore, despicable.

If the lying MSM actually cared about this matter, they would have been along for the ride over the last few decades—as members of the precious metals community have been—warning the masses about this threat.

Now, as it stands, the debt ceiling has once again been put off until March 2019. Extend and pretend is here to stay, and as I have stated for years now, its end goal is infinity.

The question is now, what does the United States do about it? How does one reign in an "official" debt of $20.6 trillion ?

The answer may shock you, but it’s very straightforward. Nothing.

Nothing can be done at this point. Changes can be made that could benefit society as a whole. However, the facts are the facts and these are frank.

What cannot be repaid will not be repaid. Period.

The United States government, fueled by out-of-control spending, has not only gone over the cliff, but have continued on and jettisoned into orbit. They have left planet earth and are so disconnected from reality that reality no longer applies, at least in the short term.

Politicians know this, the ones loaning the U.S. money know this, and everyone who doesn't is asleep at the wheel, blissfully ignorant.

So what happens next?

This is a multi-pronged question, and the answer is counter-intuitive to what you might think.

The government should keep spending, but spending on the right things. Infrastructure, buying natural resources and hard assets should be at the top of their list. Bringing their troops home and securing their homeland with the most state-of-the art military defenses money can buy should come next.

For you see, the day will eventually come when the piper demands his due and this whole farce comes crashing down. The US will default and the dollar will become worthless. Precious metals will explode in price, and those who were wise enough to take early action will partake in one of the greatest wealth transfers this world has ever seen.

Meanwhile, if the United States takes my advice (don't hold your breath), they will be in a key position to rebuild and restructure after a major default. Sitting on a horde of real, valuable assets that they bought with phony fiat money. In addition, they would have a strong military force—that none would dare oppose—for decades to come.

But then again, what do I know?

I'm just a simple silver bug, typing away behind a computer screen, attempting to forecast a storm somewhere over the horizon that the majority of people would simply rather ignore.

Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world.

He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

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