Is It Really A Good Idea For Congress To Raise The Debt Ceiling?

Should we really raise the debt ceiling just to go further into debt? That doesn't sound like a smart idea.

For the last two days, mainstream media pundits have been having an aneurysm over “republicans not wanting to raise the debt ceiling,” which first of all, isn’t even accurate, as there are plenty of republicans who have no issue raising the debt ceiling at all (cough… Mitch McConnell cough…). But is a fight against raising the debt ceiling actually a bad thing?

I’d argue, no. In fact, raising the debt ceiling further would just be another instrumentation of the state to postpone what we all know will eventually happen: the inevitable default of the United States’ debt. Why does the American political establishment, and particularly the elites, always want the debt ceiling raised?

The answer is because the elites of the world are making piles of money off not only the devaluation of the American dollar which artificially skyrockets the value of their assets, but also off monetizing the United States’ debt. Many ordinary people either don’t know or don’t understand that the Federal Reserve actually has many private investors. These investors are paid dividends by the Fed for the “stock” shares they own of the entity. Who are these investors? Well, the answer is: nobody really knows.. 

One thing that we do know, though, is that a number of foreign entities own a good bit of the United States’ debt, including the Chinese Communist Party, which owns about 1/30^th of the U.S.’ debt alone. Does the American public really want such an entity to have such influence over our economy? My guess is probably not, but the American people probably don’t actually know enough about the United States’ debt to even realize it’s happening. 

So why not just default on the debt? The elites tell us it would completely destroy our economy… but would it really? “Defaulting on the national debt” really only means that the U.S. doesn’t actually have the economic resources to pay back its debt – which in all actuality, it doesn’t – and therefore will cease to make payments on it. Would that really hurt the economy? It would certainly relieve a good bit of the tax burden on the middle class, which is paying vast amounts of money just to keep up with the debt interest payments. Defaulting on the debt would also certainly require Congress to reevaluate what it currently spends (or wastes) money on. Would cutting the amount of money the American people give to Lockheed Martin and Raytheon every year really hurt the U.S. economy? My guess is probably not as much as the elites are telling us. 

And yet another reason the elites don’t want us to default on the debt seems quite obvious when thinking abstractly: the “private investors” of the United States Federal Reserve don't want us to. If we cannot repay the debt, a lot of these “investors” would lose out on the money that the American people “owe” them. No one, including the richest of the rich want to take a loss on a big investment. But that’s exactly what a debt default would do, make these “private investors” actually experience a loss on a large investment, something that I assume many of them have been “lucky enough” (or have always been privately-informed enough of upcoming market changes before they happen, I surmise) to have never truly experienced before. 

I think we should allow the United States to default on its debt, allow these “private investors” of the Federal Reserve to take their losses and feel the pain of making very risky and lousy investments, and start to rebuild our economy on a new foundation – a foundation that’s built on real risk-taking without government intervention after-the-fact on behalf of the 1%, a true meritocracy, living within our means, and responsible Congressional spending. 

Let’s hope this turns out to be a fight the republican dissenters actually win this time.