Well it’s official: the US credit card has officially been maxed out…
The United States is expected to reach the legal limit on its debt later on Monday and will start dipping into federal retirement funds to give the country more room to borrow, a Treasury official said.
As Reuters reports further, The U.S. Treasury will settle $72 billion in maturing bonds on Monday, which will push the country right up against its $14.294 trillion borrowing cap, the official said.
To all those who thought only the insolvent government of Ireland will plunder pension funds, our condolences.
This is yet another confirmation of what we’ve been predicting since 2008…
The US has two options… Default and a deflationary depression…
Or turn up the printing presses for QE3,4,5 and beyond into hyper-inflationary oblivion.
So which will it be?
Well if you want to know what’s going to happen, forget everything else, and simply ask yourself… What do people do?
Because the pattern is the same throughout history…
What do people in power do with that power? Do they willingly give it up, or do they abuse it?
What do people in power do with opportunity? Do they let it pass, or take it?
What do people in power do when they make mistakes? Do they do what’s right for the masses at their own expense, or do the protect themselves and their friends first?
What do people in power do with responsibility? Do they accept it, or pass it on to someone else?
What do people in power do? What’s right for others, or what’s right for them?
So ask yourself… What will our politicians, lawmakers, bankers, and traders do?
Will they face the pain of their decisions and do what is right to fix the problem, likely losing everything they have and all of their power in the process, or will they do everything then can to try and keep their power, and above all else, protect the status quo?