Chairman Bernanke has informed the American people that interest rates will go up on consumer debt and mortgages, however this is not true. It is the repetitive tack used in our crisis riddled times to frighten people into passivity. Bernanke has an excellent track record of half truths and outright lies.

The US government takes in enough tax revenue to pay their creditors, without raising the debt ceiling they would be forced to instantly balance the budget but we would not default on the debt. No one wants to do this because it means we go into a depression as jobs will be cut due to federal government spending cuts.

There is the conundrum. Can we really rely on congress and the executive branch to raise the debt ceiling and then cut spending over time and balance the budget? If we do not and the ponzi continues on it will probably lead to a depression far worse than the one we would face if we cap the debt ceiling tomorrow.

Since there are historians lurking around can you cite a historical example of any nation or empire that had rampant debt and big wars that successfully navigated out of the problem within a short time span?

I hope we default. The near term pain of a default will force a reckoning with the bloat and excess. It will be instant depression (gov spending is a huge part of GDP and jobs) and a miserable few years but waiting on the other side of that will be a hungry nation with more power than people realize. All around me I see innovation in robotics, 3d printing, rethinking EDU, software, hardware. We have what it takes to recover and rebuild….. if……

We scale back military spending… lets face it war = jobs. If you dump an arsenal on innocent people its bad for karma but you need to make more boom sticks to replace those dropped. A miserable formula for jobs and hurtful to the innocent. We inflict pain and death on people who do not deserve it in order to keep people employed in industrial milatoronics.

Thats a sideshow thought compared to the biggest problem. We have to gut the big banks, like they are grizzly bears that ate an entire boy scout troop. The banks have tasted the flesh of the american people and they will just keep feasting unless we wreck them. There must be a separation between investment banking and lending banks. IB’s need to be set adrift out of the TBTF pool and allowed to take all the risk they want and get wiped out. No matter what we do if we do not fix this underlying problem it will zombify the entire American economy until we reach bannandom and from that we will not return. In addition to gutting the guilty must be prosecuted or there will be no limits to criminality by the banking class.

Imagine a soccer game in which half the players could do whatever they want. No one would watch and there would be no game, only anarchy and a bunch of listless players laying around trying to play by the rules. We need a referee, we need rules, and we need punishment or the the game isn’t worth playing or watching.

The debt ceiling is another tool of fear used by both parties to get what they want for who knows who. (banks, stock market, property assets) Obama said over the weekend “It’s very important that the leadership 1/8in Congress 3/8 understands that Wall Street will be opening on Monday, and we’d better have some answers,” He didn’t say hey guys the American people go to work on monday, just that the stock market opens. Screw the stock market, its a ponzi scheme that keeps the assets of the rich bloated by taxing he American people. If it were regulated it would work as an investment vehicle for the public but its just a tool to funnel future tax dollars into wealthy hands while IPO’ing pitiful job engines like Linkd in beyond decades of future value.

They will tell you once again just like Bush or Paulson did. We make war and torture or die from terror. Sign the blank check for bailouts or watch civil war in the streets. Raise the ceiling or the market will crash.

I vote to not raise but only if the military is scaled back and banks are gutted, if not then it doesn’t matter what they do as we are screwed either way.