The Real News

While the press is in a blather over the debt ceiling negotiations some news even more ominous hasn’t even qualified. When the Fed began hinting about a week ago that they were considering another round of QE, the press didn’t even call it that. Since every round of QE is another technical default on our debt, that would make default number three. We are at the point where we are the sole significant lender to ourselves. Since the stated purpose of the programs is to drive down interest rates, it begs the question, at what rate would we find willing lenders(other than ourselves)? And as rates rise at what rate would we be able to afford only interest and little else in the budget? And since at higher rates it becomes obvious that we carry more debt than we can honestly pay, why would anyone ever loan us anything? No, don’t worry. We will just keep lending to ourselves so we can keep all those wonderful programs running that keep us the land of the brave and the home of the free.

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