By Silver Shield

I made a call earlier this year that the debt ceiling would be raised after a Contrived Drama plays out in Washington. I became even more emphatic in April when I said that you can “Count On It!” The reason for my bold assertion is because I know that our debt based monetary system MUST have a constant expansion of debt in order to function. Our money IS debt and they are on in the same. Debt needs to be increased every year in excess of the debt AND interest accrued the year before or we would face a catastrophic deflationary crash. And since bankers profit from creating debt/money and politicians gain control from spending money/debt,they will not end this game willingly. They will put on a huge act to reign in our expectations,but this head fake will only result in a higher debt ceiling and QE3.

The government must act as the spender of last resort since the Boomers are entering their elder years. Boomers have been wiped out from the stock market and housing bubbles and now they are worried about their jobs and retirement. The economy is now feeling the permanence of this demographic shift from the largest and most debt enamored generation slowing down. Businesses,large and small,are scaling back their endeavors to reflect a growing reality of a new normal. The slow down in the largest consuming nation is sending ripples around this globalized world. Countries see the economic slow down of consumer spending that makes up 70% of the economy and no longer want to invest their capital with so many problems on the horizon both here and in their own countries.

This leaves the Federal government as the spender of last resort to keep the music going. They not only have to worry about the $1.4 trillion dollar budget deficit,they have about $4 Trillion in short term debt that needs to be rolled over in the next two years. Who will spend to keep the music playing if not the spender of last resort,the Federal government? Who will buy this debt if not for the lender of last resort,the Fed? And how can the Fed buy more debt if the government has a pesky debt ceiling?

We are now playing a big game of chicken. The Fed says no more money/debt and the government says no more debt/money. Who are they fooling? They are like junkies saying they are going to sober up as they head out the door with Charlie Sheen. They desperately want more debt and money,because that is where their power comes from. They also know that if they do not get it,they will have a catastrophe on their hands. The key is fooling you to accept another shackle on your chain,because you are the one that pays for this game.

The Fed made the first head fake,by announcing the end of QE2 and that there would not be a QE3. The Fed is managing economic expectations so as not let the public panic and leave all paper assets en masse. The Fed knows that if the public ever truly saw the amount of money printing they create,people would lose faith in the currency. Can you imagine Ben Bernanke saying,“yeah,we are going to print trillions of dollars and give it to our buddies so that hey can continue gambling and this should create 20% inflation and more job losses.”If that happened,people would dump their dollars and they would cease to have any value. Gold,silver,food and fuel would sky rocket as more and more dollars chased after a limited amount of real assets. This would collapse all paper assets,including and not limited to,stocks,bonds and real estate. A collapse of that system would destroy the Elites power structure. The Elite is never going to choose that course of action. They must extend and pretend. They must inflate or die.

This CONfidence game must be played so that you believe that the dollars you hold actually have some intrinsic value. The banksters must put on a good show of dour economists spouting economic gibberish. The breathless reporters will then report that we should meet these economic terrorists demands or the world will end. This leaves the political roadblock.

AIPAC’s newest tool,Republican Eric Cantor,is proposing a Balanced Budget Amendment to the Constitution. Obama is talking tough too. Both parties are putting on a political show for their constituents with all the drama of a WWE Smackdown. In reality,the Republicrats are managing political expectations so as not let the public out of this false left-right paradigm of choosing the lesser of two evils. This act is to contain the political anger of 20%+ real unemployment and the massive spending that has resulted in NO jobs. The Republicrats do not want any real change to come to their very well scripted game. They would not want a third party to gain power that would end the wars,bring home the troops from 777+ military bases. They do not want some party to shut down most of the federal government so that states would have more power. And they certainly do not want any real change to the economic system that would end the debt based monetary system or the fractional reserve banking and usury that enables this system. No,they are going to battle hard and at the last second they will reach a “huge”bipartisan compromise for the “good”of the nation. Our heroes…

We are going to have exponential growth of debt leading to hyperinflation.

The big question remains what will come first,the crisis or the compromise? If the Elite feels that there is real resistance to the raising of the debt ceiling,they will spring a economic shock to scare the people with a little taste of deflation like they did in 2008. If they can get away with raising the debt ceiling,the Fed will announce further easing measures to keep the music going later on this summer. I personally believe that we will see a crisis no matter what happens,because that is where the Elite make their biggest gains. With all of this in mind,I encourage everyone to get ahead of the curve and get out of all paper assets now and buy real tangible assets. (Read:The Silver Bullet and the Silver Shield.)

For the record,it is not that I am opposed to a balanced budget,it is just not realistic. In order to truly have a balanced budget we would need to change everything we are,starting with what our money is. We cannot have a debt based monetary system and a balanced budget. It does not work long term since there is never enough in the system to pay the debt AND interest. For those of you that still believe we had a balanced budget during the Clinton years,look at what happened to our social security fund. Look at all of the unfunded liabilities we now face. If you wanted to work towards fiscal sanity,we could start by bringing home all of the troops and using that money here at home. Even that would not last too long,because we have too many now starting to take from the generational Ponzi scheme. Also it would result in the collapse of the Petro dollar,as we would no longer be able to muscle the world to use our money for oil.

The only way out of this mess is a total collapse.

There is no reforming the system.

It must die of its own cancerous excesses and leave a generational scar so that we never again create a system based off of debt and war.

To learn more about what you can do to prepare for this mathematically inevitable collapse,  join the Son of Liberty Academy. See how you can be aware and prepared.