Debt Ceiling & Repudiation

The debate in Washington, D.C. over the federal debt continues as the Aug. 2 deadline for raising the “debt ceiling” approaches. Standard & Poor’s has already reported that it would cut the U.S. credit rating from AAA to D, the last rung on its scale. John Chambers, chairman of the company’s sovereign rating committee, says, “If any government doesn’t pay its debt on time, the rating of that government goes to D. Having said that, we think the government will raise the debt ceiling. They’ve raised it 78 times more or less since 1960, often at the last moment, and we think that will be the case this time.”

Chambers is probably correct, the Republicans and Democrats in Congress will put on a facade of not being able to agree, yet consistently work together in their own self interest to get bills passed. One need only look back to the 2008 passage of TARP (Troubled Asset Relief Program), commonly called the “banker bailout.” TARP was supported by both major party Presidential candidates, John McCain & Barack Obama; as well as then-Speaker of the House Nancy Pelosi, current Speaker John Boehner, both major party VP candidates and some prominent talk show hosts (Glenn Beck, Sean Hannity & Jim Cramer). reports that former Senator Evan Bayh “described a scene from 2008 where Ben Bernanke warned senators that the sky would collapse if the banks weren’t rescued. ‘We looked at each other,’ said Bayh, ‘and said, okay, what do we need.'”

Instead of saying, “No, we will not raise the debt ceiling.” Members of Congress will come to a compromise that will increase the debt ceiling, further inflate the currency and continue to enslave tax-payers with a perpetual debt that will never be paid off. However, there is a solution; debt repudiation! Though, repudiating the debt will not be an easy task. In 2009, the Boston Tea Party National Committee passed a resolution stating, “Resolved, that the Boston Tea Party’s national committee hereby calls upon both houses of the US Congress to promptly pass,and calls upon the state legislatures to ratify, a constitutional amendment repealing section 4 of the 14th amendment, prohibiting future indebtedness and deficit spending on the part of the federal government, and repudiating all federal government debt and debt service obligations accrued prior to the ratification of said amendment.”

An alternate proposal for eliminating the debt, is to eliminate the federal government that created the debt. Again, not an easy task, though one that will likely occur at some point in the future; either being replaced by a new national government or with a total collapse of these United States of America. There are many theories of what a post USA North America would look like, though most agree that there will be at least 8 new nations. I’d prefer to see a peaceful split of the country rather than a violent rebellion.