We’ve Just Breached the Debt Ceiling… Next Comes the Default

Phoenix Capital Research's picture

While Barack
Obama is chugging Guinness and Congress is doing… well not much of anything, we’ve breached the US debt ceiling.


correct, the US now has more debt than is legally permitted. We’d crossed the
“more debt than is healthy” as well as the “more debt than is sane” levels long
ago. However, it wasn’t until the last few weeks that we cleared the legal debt


You’d think
that the world’s largest economy (and home of the world’s reserve currency)
exceeding its debt limits would be big time news. But we’ve yet to hear a peep
about it from the mainstream financial media.


It’s even
stranger that we haven’t heard mention of the fact that the US is in fact
RAIDING pension funds to continue to fund its debt.


correct, Tim Geithner, who aside from being a tax dodger has managed to make US
Treasuries (formerly the ONLY risk-free investment in the world) so
unattractive to foreign investors that he is now using money that was promised
to retirees to fund his debt orgy.


Let’s think
about this for a moment… US Treasuries are so unattractive that investors no
longer want to buy them… so we’re using money promised to those who worked… to
buy them.




Aside from
being morally wrong, Geithner’s moves are the usual “I’ve got no solutions so
I’m just going to come up with something on the fly” nonsense we get from the
DC crowd. Even Geithner himself has admitted that his latest scheme will only
buy the US about three months’ time before we start defaulting on our debt.


That’s not a
typo… Geithner has publicly stated that barring any sudden changes in the
demand for US Treasuries, the US will DEFAULT in August 2011.


In some ways
this doesn’t matter. The US was going to default soon anyway. The US Federal
Reserve is the primary buyer of Treasuries now. And it’s simply buying 50+% of
all new debt issuance back from Wall Street (usually within a week or two of
the debt being issued).


In other
words, the entire US debt structure is now a giant Ponzi scheme.


On that
note, if you’ve yet to take steps to prepare your portfolio for the coming
inflationary disaster, our FREE Special Report, The Inflationary Disaster explains not only why inflation is here
now, why the Fed is powerless to stop it, and three investments that absolutely
EXPLODE as a result of this.


All in all
its 14 pages contain a literal treasure trove of information on how to take
steps to prepare AND profit from what’s to come. And it’s all 100% FREE.


To pick up
your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.






PS. We also
offer a FREE Special Report specifying exactly how to prepare for the coming
collapse in the US stock market (inflation will NOT be positive for stocks for
much longer).


I call it The
Financial Crisis “Round Two” Survival Kit
And its 17 pages contain a
wealth of information about portfolio protection, which investments to own and
how to take out Catastrophe Insurance on the stock market (this “insurance”
paid out triple digit gains in the Autumn of 2008).


Again, this
is all 100% FREE. To pick up your copy today, go to http://www.gainspainscapital.com
and click on FREE REPORTS.