The People Fiddle as the Country Burns

Posted at 10:46 AM (CST) by & filed under

By Greg Hunter’s

Dear CIGAs,

Thank goodness the Casey Anthony case is over!  The jury thinks she is not guilty of murder.  I don’t know if they got right or wrong, but I do know many dollars and much air time was devoted to a story that will have zero effect on the lives of 99.999% of Americans.  I think the discovery of a walking, talking Martian would have gotten about the same attention.  I guess this stuff sells newspapers and gets TV ratings but is sure not what U.S. citizens should be focused on.  Maybe that’s the point.  Are stories like Casey Anthony just our version of a Roman Circus?  Are the masses being kept preoccupied with events that have no bearing on their lives while the country burns in a cloud of debt?  I think so.

Most people have no idea of the perilous position the U.S. is in.   One wrong move by our government or even a government the size of Greece, Portugal, Spain or Italy, and there could be a daisy chain of debt explosions around the globe.  The people are in the dark, and I blame the mainstream media (MSM.)  A story that should have people really terrified is the battle going on in Washington D.C. over raising the debt ceiling some $2.4 trillion dollars.  If the issue is not settled by early August, the U.S. could have the mother of all debt defaults.  The Democrats and Republicans cannot agree on a package that contains both tax increases and budget cuts.  President Obama has called for a “balanced approach.”  Bloomberg reported yesterday, “The Obama administration and congressional leaders are working to complete a deal on a long-term budget reduction package by July 22 as part of a plan to raise the $14.3 trillion debt limit. The Treasury Department has said that its borrowing authority expires Aug. 2 and could result in a first-ever U.S. default on its obligations.  Obama’s comments came as Democrats were intensifying a showdown with Republicans over whether tax increases should be part of a deficit-cutting deal before the Aug. 2 deadline.”  (Click here for the complete Bloomberg report.)

Everyone should be watching this debt ceiling negotiation because, no matter the outcome, it will affect the lives of 99.999% of Americans and many people around the globe.  If a deal is not reached, catastrophic consequences would follow.  In his latest report, economist John Williams from said, “Such a default would be a serious mistake, and it most likely will be avoided as political games push the limits of brinksmanship.  An outright default likely would trigger massive dumping of the U.S. dollar, and it would accelerate movement to much higher U.S. inflation and, ultimately, to hyperinflation.”  According to Williams, there are $12 trillion in liquid dollar assets held outside the U.S.  That is where the hyperinflation would come from.