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Congress To Eliminate The Debt By Not Counting It Anymore...
Submitted by Simon Black of Sovereign Man blog,
You know the old rule of thumb about laws–
The more high-sounding the legislation, the more destructive its consequences.
Case in point, HR 3293– the recently introduced Debt Limit Reform Act. Sounds great, right? After all, reforming the debt seems like a terrific idea.
Except that’s not what the bill really does. They’re not reforming anything. HR 3293′s real purpose is to authorize the government to simply stop counting a massive portion of the US national debt.
You see, one of the biggest chunks of the debt is money owed to ‘intragovernmental agencies’.
For example, Medicare and Social Security hold their massive trust funds in US Treasuries. This is the money that’s owed to retirees.
In fact, nearly $5 trillion of the $17 trillion debt (almost 30%) is owed to intragovernmental agencies like Social Security and Medicare.
So now they basically want to stop counting this debt. Poof. Overnight, they’ll make $5 trillion disappear from the debt.
On paper, this looks great. But in reality, they’re setting the stage to default on Social Security beneficiaries without causing a single ripple in the financial system.
Remember, when governments get this deep in debt, someone is going to get screwed.
They may default on their obligations to their creditors, causing a crisis across the entire financial system. Or perhaps to the central bank, causing a currency crisis.
But most likely, and first, they will default on their obligations to their citizens. Whatever promises they made, including Social Security, will be abandoned.
And if you read between the lines, this new bill says it all.
Not to be outdone by the United States Congress, though, the International Monetary Fund recently proposed a continental-wide ‘one off’ wealth tax in Europe.
Buried in an extensive report about Europe’s troubled economies, the IMF stated:
“The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair).”
In other words, first they want to implement capital controls to ensure that everyone’s money is trapped. Then they want to make a grab for people’s bank accounts, just like they did in Cyprus.
The warning signs couldn’t be more clear. I’ve been writing about this for years. It’s now happening. This is no longer theory.
Over the last few weeks I’ve been having my staff revise a free report we put together two years ago about globalizing your gold holdings.
In the report I mentioned that capital controls are coming. And that some governments may even ban cash transactions over a certain level.
These things have happened. Cyprus has capital controls, France and Italy have limits on cash transactions. And given this new evidence, it’s clear there’s more on the way.
Every rational, thinking person out there has a decision to make.
You can choose to trust these politicians and central bankers to do the right thing.
Or you can choose to acknowledge the overwhelming evidence and reduce your exposure to these bankrupt western countries that will make every effort to lie, cheat, and steal whatever they can from you… just to keep the party going a little while longer.
It’s time for people to wake up to this reality. You only have yourself to rely on. Not the system. Not the government. And certainly not the bankers.
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"Remember, when governments get this deep in debt, someone is going to get screwed."
The person holding a promise (SSI, Pension, Medicare, Loan, Bond, etc.) will get screwed.
The person holding gold will have something of value.
Perfect! I'm going to stop counting my mortgage payment and credit card debt. Poof! All gone.
*fingers in ears* lalalalallalalalalallala
Aaaaannnnnnnd it's GONE! Now we can spend MOAR!
Pretty soon they'll have co-opted the National Debt Clock sites and have them rolling backwards...for the children's sake.
CTRL + P to Infinity and Beyond.............
We are going from Benny & The Inkjets to whatever the Hell Yellen is Smellin'
remember pelosi told us she was going to "deem" obamacare as passed (without even voting on it)?
this is the same thing....just "deem" it paid off.
problem solved.
/s
Yippee! The crash is getting even closer!
Forward (over the cliff)!
Hmm.. a business opportunity..
Pure hemp necktie outlet stores at every major road leading into DC.
Nylon and other synthetics for the non-smokers.
..with a section featuring imported oil for boiling, upmarket tar and designer feathers.
IDIOCRACY - The Movie.
Why stream it when you can experience it.
aaah, the ole ostrich strategy. Ya, that'll work. Calling them Morons or idiots just doesn't seem to cut it anymore... they've graduated to a new level...
They are utterly insane and the water is spinning so fast I am dizzy.
The Capitol, the Mall, the White Mosque, all...going....down......
Got.To.Hold.On.To.PM.For.Stability.
They're not insane. Well, not JUST insane because they know what they're doing and what effect it will have on this already sinking ship.
A more accurate word for it is: Evil.
But "lockbox"
I think there's a big credibility GAAP they are overlooking.
Maybe; but that's ok as long as they don't mess w/ DWTS, The Voice, and Survivor
"Hell Yellen is Smellin"
Was that you who said "I bet she could stink up a bathroom" ? Man, I busted a gut on that one.
even better- instead of the terrible terrorist color oh my god threat level chart, we can have the national debt terror color chart! now with periwinkle!
Falls right in line with the rest of the economy. It's all bullshit. Let's just declare the debt gone all together. What would happen? I mean shit, bankers get big fat bonuses every year on completely mythical profits. And nobody seems to care. Pass this bitch and let's kick this mother fucking can some more!
"Congress To Eliminate The Debt By Not Counting It Anymore"Like the numbers for the unemployed, GDP, inflation, education.....
After the "happy" figures, everything to be "revised" down the following month.
And how does this head in the sand rubbish help cash flow? They already have fraudulent accounting, but bad can always get worser.
Stupid is as stupid does.
because obama.
And what millions of people would like to know ... How can they reform their personal debt to make it go away without paying anything off?
Tell the bankers, "I break with thee, I break with thee, I break with thee", then poop on their shoes.
Or give them two choices:
1} Forgive my [mortgage] debt or
2] Put your head in this noose
"I didn't build that debt."
ahhhhhh yes ,the pull the blanket over your head defense.......
I don't know. I'm kind of warming up to the idea. Reality is just so irritating. Perhaps if we all agree to ignore and not talk about it, may be it will just go away. Just like sitting in a restaurant. As long as no one touches the check, all is good.
Miffed;-)
"Perhaps if we all agree to ignore and not talk about it, may be it will just go away"
Which is exactly what tens of millions of Americans are doing right now...
I see. I momentarily was seduced by Blue Pill. I brief respite with a Soma indulgence. Being awake sure takes a toll on the adrenals I will say ;-)
Miffed;-)
Re: Perfect! I'm going to stop counting my mortgage payment and credit card debt. Poof! All gone.
The TBTF bank I used to work for had a mortgage plan where you could "choose" to pay any amount you wanted each month. We called them "Forever Loans" (the Marketing Sociopaths called them something else, but I can't recall the offical name).
The government should try this. Make paying the interest optional too.
I think my wife worked at the same place - they used to call them "pick a pay" loans, at least in public. You could decide to pay the full monthly payment, make a partial payment, or pay interest only. We were both shocked at the idea.
Sounds all subprimy and McMasiony...that worked out so well, didn't it?
Not yet.
During hyperinflation, people do stop paying their bills. They wait and wait and wait, as the penalty for late payment always consumes less purchasing power than timely payments.
@ rubiconsolutions
That's one of the funniest posts I've ever read.
Exactly!!! We have idiot children writing laws.
Wasn't it revealed that Detroit city pension holders will get 16 cents on the dollar? Yowza. I've been flipping my silver stack the bird for 6 months now ( while adding to it). I expect someday in the not too distant future I'll fall back in love with it.
"There are two kinds of people in this world. People with guns and people who dig." - Blondie to Tuco in The Good, The Bad, And The Ugly. Tuco commenced digging.
The person with the guns will assume ownership of the gold.
Hence the assault on 2nd Amendment.
Buy a Dillon. It works.
All my gunz and PMs fell down a well.
Oh, well
E Z come, E Z go.
You can't fix stupid and that surely goes for the voters of Florida who sent this convicted criminal to the House.
complete Hubris, Bravado, Megalomania & outright Criminals consorting amongst themselves.
Is it ever more evident now more than ever that Criminal, sociopathic, psychological business practices are now the norm?
The Global Criminal Oligarch Cabal Bankster Intelligence Crime Syndicate has installed their "Agent Smiths" at all of the highest levels of Education, Political, Educational & Economic Systems which control man/woman.
Over time & throughout Centuries these same Criminal Global Elite Oligarch Crime Syndicates have managed to condition the masses through deception, Illusion, & lies to Divide & Conquer man.
Trayvon being one of Obama's sons, if I'm not mistaked Alcee Hastings is one of Obama's brothers.....
Is the congressional cosmetic surgery bursary still flush because Nancy Pelosi is one facelift away from having a goatee if you know what I mean, and I want to see that.
New advertising angle for BTC: "Capital controls got you down? Bitcoin can help."
And the next step is to reneg on the already taxed entitlements (S.S., etc.).
Just like the Detroit pensions; 40 year promises broken to shovel more money to the banksters.
Not a chance: https://www.govtrack.us/congress/bills/113/hr3293
Making the bill two thousand pages instead of two pages would probably increase the likelyhood of enactment from 0% to 50%.
Make it twenty thousand pages to ensure enactment.
Bingo. Guess Simon should have done a little more research on the bill than on the free report.
You mean not a chance to pass it overnight, but will pass it anyway in any time? I hope it will PASS!
My God...It seems like we are speeding up in our spiraling down the toilet, not too much further to go?
And you have to love how they are pulling out the intragovernmental agency card again, how they pulled the carnard over us when Clinton and Gingrich 'gave us surpluses.'....
Can we just hang 99% of them for the last 25 years... Throw in a few ceos into the mix as well.
Stuff always spins the fastest just before it goes down the drain.
It's amazing. The disconnect from reality that is happening in the financial markets right now is staggering. The very definition of Cognitive Dissonance.
It's back to the burning question. How much longer can this grand fiction trump reality?
jubilee!
...and now it's an ASSET!!! wam bam thank you mam
What did you expect from Alcee Hastings?
I only trust the [Red | Blue] Team politicians to do the right thing.
And, people with wise looking beard, they can be trusted too. And people with nice smiles, and nice suits.
Go Cubs!
Yea, the old "we owe it to ourselves so it really doesn't count" bullshit. Again.
Only a PhD eCONomist could say it with a straight face, like Krugputz.
Let me guess: this new policy will not apply to home mortgages and personal debt.
401k loans where you borrow your own money!
Every year I receive a statement from Social Security that shows what I've earned since my first part time job when I was in high school. It also shows what my 'expected' benefit should be when I retire. On the front page is a disclaimer, been on there for years, that my benefit may only be a portion of the stated amount. I don't always agree with Simon Black but I think he's got this one right. Default(s) to the citizenry are likely. BTW...anyone can request their statement from SSI, no charge.
This is what happens when you do not understand the difference between an Assets and Liabilities statement and an Income Statement. Even if they default on the entire debt and confiscate all assets, they still have the problem that the need to borrow $1 trillion a year. If they confiscate all assets, who are they going to borrow from? Even if they succeed, if they do not fix the overspending problem, in 17 years, they will be back to owing $17 trillion.
"God decidied to sue Satan. He had a big problem - where was He going to find a lawyer?"
Not a bad point with an excellent metaphor.
The problem Walt, is that the government is too fucking stupid to reason that way. You presume they have some intelligence- you give them far too much credit. They will do both.
A lockbox was just mental accounting. What is wrong with a consolidated balance sheet? Isnt debt double counted otherwise?
....just need to have the chosen attorney sign a conflict waiver.....
The part of this piece that I find fascinating doesn't have a fucking thing to do with how the charlatans count the debt. It is this part that fscinates me most...
In other words, first they want to implement capital controls to ensure that everyone’s money is trapped. Then they want to make a grab for people’s bank accounts, just like they did in Cyprus.
The warning signs couldn’t be more clear. I’ve been writing about this for years. It’s now happening. This is no longer theory.
Over the last few weeks I’ve been having my staff revise a free report we put together two years ago about globalizing your gold holdings.
In the report I mentioned that capital controls are coming. And that some governments may even ban cash transactions over a certain level.
These things have happened. Cyprus has capital controls, France and Italy have limits on cash transactions. And given this new evidence, it’s clear there’s more on the way.
Every rational, thinking person out there has a decision to make.
When this faux economy collapses, as it surely will, these fuckers will come and try to steal your shit. FDR did it in 1933. Corzine did it Halloween, 2 years ago. The legend of MF Global and the hedgeless horseman.
Indeed...here is the IMF saying "how about robbing 10% of everyone's bank accounts?" in plain sight. (p.49)
http://www.imf.org/external/pubs/ft/fm/2013/02/pdf/fm1302.pdf
People are awake. No one's got the balls to arrest the FEDs. But, as opportunities continue to increase from their lawlessness some entity will surely not pass by the chance of a lifetime. F'kers
from that page:
1% chance of getting past committee.
0% chance of being enacted.
Anyone else sick of this shit?
I am all out of fucks.
Fuck it.
It kinda makes sense. It is just mental accounting. If a business sold a bond to itself it would be a wash.
Right? Where am I wrong here? Why not a consolidated balance sheet? Social security is pay as you go anyway.
True, but that is not what they sold to the folks. Remember it is in a lock box.
If a business sold a bond it would have the cash equivalent sitting somewhere.
Uncle Scam does'nt have $5tn in an offshore account.
Nada, as in bankrupt.
Well, I must admit, that concept never even crossed my mind.
Out of site, out of mind!?!
How is this any different than throwing your bills in the trash without even opening them?
Who's the credit agency that gets to call on the federal government?
In our country now anyone can buy the right to collect on debt owed.
I'll pay $500 for the right to collect $1 trillion. Like any good collector, I'll even send some goons to break Senator's legs until I get paid.
The Senators will send your goons back to you in plastic bags.
I want this rule to be applied to me toooooooooo!!!!!!!!!!!!!!!!!!!!!!!!!!
Can I????????????????
Should get to $25 trillion pretty quickly now.
Why not $100 trillion, how about $50 Quadrillion? I do not think the size of the number means anything anymore. We are just going to take it in the ass until the whole system violently implodes.
Americans will just wake one day and they'll learn their currency is worthless. The US isn't immune from a currency crisis. It can delay it.
Has delayed it for five years.
The rest of the world is getting antsy, you cannot say they were not patient.
Instead of sorting out the deficit,Uncle Scam doubled down.
The only question now is does the house give us taxi fare.
Look either Simone black is getting stupider or I am getting stupider but it cant be both, I hope.
It is normal accounting to net out assets and liabilities right? The bond is a trust fund asset but a liability in the other part of the government. This is just bringing standard accounting principles to the govt right? Isnt that a step forward?
I love it when the Tylers throw out red meat just as much as anyone in fight club, but I am just not getting that nice full feeling I usually get.
Yeah, it's nice when you can value your assets from out of your own ass to "balance" things on the books... Keep your money AND your worthless script at home right next to a load-ed wee/pon.
This misses something rather large, double entry accounting means (at least) two ledger entries PER ENTITY must be changed in order for the books to still balance.
So either the Social Security Trust Fund INSTANTLY goes bankrupt, or the entire obligation to US seniors is INSTANTLY erased.
Public Accounting is a fraud that makes TBTF Corporate Accounting look tame, but it does have its limits.
You have to keep in mind that it is a liability that is ultimately owed to American citizens, not the government. You can't just net what the gov owes SS and what SS is owed to 0, there's still a big fat liability on the part of SS.
i've been warning my family to get their assets or at least some of it out of the EU for 2 years now ... they are just starting to consider that maybe, sometime ... basicly they still think they can outrun the government once this comes into law. They'll be too late, they'll lose millions ...
Let's call it what it is - The tyranny of the articulate.
Read more here:
http://www.strike-the-root.com/tyranny-of-articulate
Forward
Soviet!
Bitches!!
http://www.today.com/entertainment/jimmy-kimmel-skit-sparks-protest-afte...
since usa .gov is so childish this kid is probably right on the mark.
Bonehead author. The intragovernmental debt should be excluded from the debt limit. Including it makes no sense and only opens up the limit to manipulation.
I like the trillion dollar coin idea better. but no one has asked me.
it will come to that. when they realize the the inevitable will not be avoided someone will jump ship and strike the coin. my bet is japan will be the first.
"Congress To Eliminate The Debt By Not Counting It Anymore..."
sounds like a classic onion headline ...
No one I know wants to discuss or acknowledge that we the people are about to be gang raped by the Gov't. How can so many people look the other way and remain oblivious to the threats that surround the nation? Unbelievable...no discourse...no interest...no preps and worse yet I get a reputation as Mr. Doom. I give up...on them.
This article is crap. Read the bill. It does not say that. What it says is that intragovernmental debt will not be used for the purpose of calculating the debt limit. It is strictly a sneaky component of calculating rules for the debt limit. It has nothing to do with wiping out debt.
Things will one day soon play out the way the author says, but this bill sure is not it.
Plus it's sponser is Alcee Hastings, a wacko leftist and one of only 8 federal judges ever to be impeached. Boehner probably already dumped it in the shreader.
this is more proof mathematical economists think the economy is just a model that can be arbitrarily manipulated by simply changing the variables in their model. they think reality is what they say it is and not what your lying eyes see.
Since we owe it to ourselves it can't be debt, right? ;)
It's only a lie if you think it is - George Costanza
It's only a debt if you think it is - Ben and Barry
What interesting times these are. Recalculate GDP to make it appear larger. Reclassify debt to make it appear smaller. Change the laws to let TBTF banks obfuscate the market value of their assets. Devalue the currency. Point to the rising (Ponzi) stock market and artificially pumped housing market and declare victory.
FUBARFUBAR.
Whatever they steal from the people, they spend and it goes back to the people. So where's the robbery?
-The Great McGinty
So every time an individual steals from another individual, no robbery took place, since the wealth is still in the hands of an individual. Thus, robbery is impossible.
This is the kind of absolute, complete, total and utter insanity that occurs when an entire species can no longer distinguish real from fiat, fake, fraud, fiction, fantasy.
Like when people say "tax cuts create debt?" That's one of my all time favorite exercises in double-think.
Tick, Tock...
Uh, the bill is sponsored by Alcee Hastings. You remember him, he used to be a federal judge before he was impeached and thrown out of office for bribery and racketering, before the fine, intelligent, well-informed people of the 20th congressional district of Florida elected him to represent them.
I can say with some confidence that Speaker Boehner will pigeon hole his bill where it belongs, in the circular file. No need to get huffy about this one.
I CANNOT say that Speaker BONER will pigeon hole this bill to where it belongs with any confidence whatsoever.
In fact if Mitch McConnell has anything to say about it he will demand a $2 Billion District stipend and sign off on it. Then BONER will be crying to Oblameo that it...it..it just smowballed on him.
Do you remember Two Weeks ago?
You still have faith in the State?
This will be reported in the MSM as easily as they would report that people are crushing the Ceramic Pellets inside of Smoke Detectors, for the Americurium, and salting Grocery Store Produce Bins.
They would not want to start a panic, would they? No worries. It would just pass through the Digestive Tract...er...Congress. Most will not hear a thing about it....at all.
Had a discussion with someone yesterday - he is a very intelligent guy - graduate degrees from various name brand colleges - recently retired from a very successful. lucrative career.
We were discussing various overseas property markets in which both of us are active - which have doubled or tripled in value since 08 - I suggested these are massive bubbles - in fact their is a MASSIVE global bubble.
I have just put one property up for sale asking 5x what I paid for it - FIVE TIMES! I may get 4 - definitely 3.
I will downsize to a small property that will include a number of acres of arable land - I will dump the rest of the cash into more physical gold - I will also buy some gold for idiot relatives who are too stunned to do so themselves (mainly because they will come to me to help them when the shit hits) - then I will blow the rest on fine wine, hotels and travel.
He of course suggesting I not sell - it will go up more. He does not think it is a bubble.
I said well that's strange because pre-2008 the market in this one country was basically following the rate of inflation + a slight bit more. What happened in 08 that caused this huge spurt upwards?
ITS A BUBBLE!!!
All supported by ZIRP and QE - and Bernanke just sent you the mother of all insider info when he recently said 'uh - we will not taper' OPEN YOUR EYES FUCK - that means WE CAN NEVER TAPER - 5 YEARS IN AND WE ARE NOT RECOVERING - WE WILL NEVER RECOVER - WE WILL PRINT AND PRINT AND PRINT AND PRINT - AND WE WILL DESTROY THE DOLLAR - YES WE KNOW THAT - BUT WE HAVE NO CHOICE
Classic example of smart people who are dumb - they just can't get it.
We are living in la facking la land here - where people think it it normal for things to triple in a few short years - where Texas Instruments profits crash for 5 years yet their stock price doubles.
The great pulverizing is coming soon - the penalty for sticking one's head in the sand is going to be financial annihilation - these people who are piling into stocks and bonds and holding fiat are going to be warming cans of dog food over fires started with their USD and fueled with plastic shopping bags.
FUCK EM
Seems to me that this whole mess could be solved if government didn't have to pay interest on debt. If you're going to insist on paying bank interest, each of any bank stock, bank mutual fund and bank E.T.F. are programmed and hard wired to do well for anyone in cash who waits for the big correction. That way you don't have the big security risk of keeping bullion around the home.
If they just legalize ganja at the federal level, then the populace will be too apathetic to give a shit about much of anything.
The Debt's Gone!!!! Yeahhhhh! Anybody got some Pringles and a can of Coke. LMAO
DId anyone else notice that the Intra-governmental holdings, which would be ignored by this bill, are 4.9 trillion dollars of the massive 17 trillion dollar debt. Doesn't the FED hold about 4 trillion in US debt and wouldn't this bill basically make the FED able to borrow any amount and have it NOT counted towards the federal debt?
I thought the same thing. It shouldn't be included, but with the fluidity of legal definitions these days in Washington it probably will (if the shit even passes).
late to the party, but.....
This way, the sheeple will never know we paid our Visa with our AMEX with our MasterCard with our Discover card with our prepaid HSBC card with our returned items from our EBT card..... Fucking morons.....