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United States Government Now Has Less Than Two Months to Raise the National Debt Ceiling to Avoid Bankruptcy

Written by Andrew Puhanic
Published on Thursday, November 8th, 2012
Globalist Report

An image of the united states debt ceiling that Obama will have to convince congress to liftWITH every passing day, the national debt of the United States Government continues to grow.

The current level of debt the United States Government owes stands at over $16.24 trillion.

President Obama, during his 2008 campaign, criticized former President Bush for allowing the national debt to grow to $11 trillion, yet he has done the exact opposite to what he promised.

In fact, President Obama promised that he would reduce (cut) America’s national debt in 2009 by 50% immediately after he was elected within his first term in office.

Four years later, America’s national debt has exploded to $16.24 trillion.

For President Obama to deliver on his 2008 promise, he would have to cut America’s national debt by an astonishing $10.7 trillion dollars.

In reality, to expect the American government to reduce America’s national debt by $2.7 Trillion per year over the next four years is unrealistic considering that America’s national debt has been growing at an appalling $1.55 trillion per year on average since 2008.

An image of american debt printed on fiat currencyHow Long Before The United States Government Defaults on its Debts?

THE current debt ceiling, also known as debt limit, is $16.39 trillion. Therefore, at the current rate other growth (Borrowing), it is estimated that the United States Government will fail to meet its debt obligations in just over one and a half months.

At the current rate of growth ($1.55 trillion per year on average), if the American Government’s debt ceiling isn’t lifted before Christmas, then the consequences for the American economy would be dire.

Although the American Government has never failed to repay its debts, lifting the debt ceiling will only further delay the inevitable collapse of the United States economy.

How stupid does Obama and the United States Government think it’s constituents are in believing that the national debt can ever be repaid?

An image of the us debt and the us deficitHow Could Obama Reduce America’s National Debt?

So what could President Obama do to reduce the American national debt? The only obvious solution that the newly elected president could employ is to immediately reduce government spending.

Unbelievably though, for the budget of 2012, the deficit totaled $1.09 trillion, an unsurprising fourth consecutive year that the United States Government deficit has been in excess of $1 trillion.

Therefore, considering that Obama has been in power for more than four years, does he need another four years to change his policies and attitude?

Alternatively, the United States Government could continue to do as it has done in the past to delay reaching the debt ceiling.

ONE unpopular tactic used to delay reaching the debt ceiling is to temporarily remove investments from government employee pension funds. How long this unsustainable practice can continue is unknown.

Therefore, If the United States Congress fails to increase its debt ceiling, an event unprecedented in American history would take place. This potential self-inflicted financial crisis could be more severe than the great depression that began after black Tuesday on October 29, 1929.

  • lilbear68

    in history the debt ceiling has only not been raised once.
    this is more a smoke screen than anything else

  • Jean Barnes

    I agree with all that you are saying. You may well be better off if you no longer have to deal with the U.S. dollar. The fear is the globalist will be there to take over and implement what? We all could be worse off. I think the good working people of this world could make better decisions and run their own country better then these power hungry control freaks.

    I am an American and I believe the U.S. could also be a self supporting nation. I don’t have a problem with balanced trade with countries who aren’t as fortunate. But then I can’t help but to think that the problems in these poor countries are their corrupt governments.

    I put in a link to an article regarding the U.S. Fed.

    http://www.economonitor.com/lrwray/2011/12/09/bernanke%E2%80%99s-obfuscation-continues-the-fed%E2%80%99s-29-trillion-bail-out-of-wall-street/

  • Jean Barnes

    You are very well informed and correct, it goes much deeper then Obama. Rockefeller are only one of many pulling the strings. Right now survivalist are operating separately, a kind of everyman for himself although there are some small groups, mostly families.

    I haven’t got any answers for you. The only thing I can think of is to look at history to see what some of the effects may be. This has all happened before and they seem to be following the same playbook. I’m sure there are different scenarios but it may give you an idea. Daniel Estulin has been working on all this for years. I know he has a web site, you might want to check him out. If there are any like minded groups out there to take on these globalists, they are acting covertly under all radar.

  • Richie Hunt

    re Tony – US financial implosion = confidence in international markets collapse. US dollars make the world go round and the world is global, markets are interconnected, trade would be severely derailed and so would most of our lives. Mind you, this is all meant to happen, it’s all been planned for a very long time so there is no need to guess.

    • http://www.oziz4oziz.com Tony Ryan

      Thanks, Ritchie. Yup, I am aware of this; and in fact have been for decades. But for Australia, this could be a good thing. This is the only nation in the world that is potentially self-sufficient. As we are capable of producing for all of our needs there is no compelling reason to trade at all (the compulsion factor being balance of trade). We do so only to make the owners and recipients of exports rich; which, as it happens, is inherently inflationary when it effects domestic prices (ie beef and lamb).

      As to the US dollar making the world go round… bollocks. The US dollar acts as a global tax, which is why Saddam Husain got it in the neck because he was setting up an oil bourse dealing in Euros; and why war with Iran is iminent, because Iran set up a competing oil bourse some years ago.

      Here’s an example of what I mean: If we rejected the Oil Price Parity Agreement, and removed all fuel taxes, the cost of petrol would be 12 cents per litre at the bowser. (LaRouche estimated 25 cents per litre, but using US overhead base figures). Think of how this would reduce industrial overheads, transport costs, and retail and service prices. What a shot in the arm for manufacturing and agriculture. Restore tariffs and Australia would be the most prosperous nation in the world within five years; and the most influential.

      And, no trade means no punishing trade sanctions by the globalist elite.

      • Richie Hunt

        I am sure all countries can be self-sufficient given leaders who are humane, have the right values and intent. Maybe Australia more so as you say, however the country still falls under the same influences that are felt around the globe. You know the ones, the same financial experts, gurus and genius that got us into this mess in the first place. My point is that irrespective of your locale, it is probable that peasants will not benefit from a collapse in the worlds largest economy and currency.

        Your question of how long for the effect on the Australian economy – I think immediately. A ‘bank holiday’ can happen over a weekend. However, to me your question was posed as if the rest of the world would somehow remain in a state of business as usual – which I couldn’t agree with or believe a likely scenario.

  • http://www.oziz4oziz.com Tony Ryan

    Does anyone have any idea how long it will take US financial implosion to flood the Australian economy, and how? Obviously, if the dollar crashes our dollar will overvalue and kill exports, which will damage our market for wheat (in a climate of global wheat shortage); and will drown mineral exports (at a time when China is going to renege on contacts anyway). So who cares? Foreign tourism will die, but it is dead already. Beef exports are mostly live export, which we want to end anyway; so again, who cares? Getting back to killing our own cattle will resurrect 150 abattoirs and create 240,000 jobs, and reconstruct regional economies, so bring on the US crash. Or am I wrong? Ideas anyone?

    • Jean Barnes

      The crash of countries economy is the plan of the globalists. This is when they will step in with their world government takeover. There will be a new currency, new laws for all and the loss of all freedom and liberty. Resources will be taken over by China, Russia and other countries.

      Obama has been talking about the evil rich in this country. The thing people don’t understand is if you compare the U.S., Europe, and Australia to the rest of the world we are all considered rich. This is where the redistribution of wealth comes in. People do not understand the the redistribution means taken from all of us and given to the “3rd world countries.” You have to understand what Obama and the globalist ideology is. Obama believes that the western countries and Europe have stolen opportunities from these poor countries and this is why they have never been able to rise above a poverty level. Obama has said that the collective must be saved in order for him to be saved. I’m not sure what religion this is, perhaps it is collective, Salvation Theology from his 20+ years at Rev. Wrights church. There were other times in his speeches that he has referred to his Muslim faith, other times his Christian faith. Obama is a liar. As far as the globalists go, they want absolute power over everything. Muslims what to control the world and institute Sharia law. These different groups have been working together to achieve their goals. However, they each have different goals. Somehow I do not thing the rich and powerful are going to submit themselves to being ruled by Islam and Sharia. This will not end well.

      • http://www.oziz4oziz.com Tony Ryan

        I think you have summed up the the situation in the first half of your post, but Obama is a mere figurehead for David Rockefeller. Even before his candidacy, his appointed foreign affairs advisor was Zbigniew Brzezinski, who created the Trilateral Commission for its owner, David Rockefeller. Rockefeller serves the Zionist cause, along with almost all investment bankers and they want the destruction of Islam because it opposes usury and occupies the lands surrounding Israel. The call for Sharia law is merely the squarking of the uneducated element of the Muslim resistance movement, crushed under US and Israeli aggression and occupation. But Fabian, Communist, fundamentalist Christian, Vatican,/Jesuit, collectivist, Zionist, corporate, lobbies are but heads of the same hydra… NWO-seeking globalists who also own two of the five top banks in China, so there is clearly an accommodation there. The ideology you speak of is represented in the Lima Declaration, which is globalist-speak for impoverishment of all surviving peoples, few of whom will be black or brown if the eugenics and Agenda 21 enthusiasts have their way.

        But all of this is well understood by Occupy and the globalisation resistance movement in general. What I want to know is specifically, what will be the immediate impacts on Australia when the US crashes. I have practical and strategic reasons for asking. Has nobody worked on this critical aspect of Oz survivalism?