Title: Will the US Federal Government Default on its Treasure Bonds? In reality - YES.
Author: Andrew M Molchan
Date: Tue January 1st, 2013


January 1st 2013. ANDY'S UNPOPULAR INSIGHTS. Will the USA Default of Its Treasury Bonds? In reality - YES.

Yesterday, one of the jerks on a major TV News Channel was screaming about Senator Rand Paul (Ky, and Son of Congressman Ron Paul), screaming about Rand Paul saying, "the US is on the road to defaulting on its T-Bonds."

The TV jerk was foaming at the mouth, "Rand Paul is saying that if America keeps building Debt it will default on its Bonds. That's NOT true, Never, Never! I'll grow hair on my bald head before America defaults on its Bonds!"

The FACT is that America ALREADY has more Debt than it can every possibly repay. TOTAL Debt in America, counting everything, is about $85 Trillion Dollars - that's $85,000,000,000,000.00 dollars. That's 500% of America's total GNP.

Worst of all, the assholes at the FED sincerely believe that the ONLY cure for a problem of too much Debt is a LOT MORE Debt.

What is America going to use to pay-off it's Treasury Bonds? You have to pay off Debts with profits, with a surplus. You Cannot forever do what the assholes at the FED are doing, keep on buying US T-Bonds with fabricated, phony, fraud Queer Money.

Where during the next 10 and 20 years is the US Government's tax surplus going to come from to buy back USA T-Bonds at purchase price like value? In the last 53 YEARS, from 1959 to 2012, the Federal Gov has had only 5 years of Surpluses: 1960-$301 Million, 1998- $69 Billion, 1999- $125 Billion, 2000- $246 Billion and 2001- $128 Billion. That's only $558 Billion in Federal Surpluses in the last 53 (fifty-three) Years.

Total "official" Federal Debt right now (using under-estimated crooked accounting) is still a giant $16 Trillion Dollars. Do the math, 100% of ALL of the Federal Gov Surpluses for the last 53 years would pay for 4% of the current (under-estimated) Federal Debt.

Will America EVER see another "Surplus" in the lifetimes of Americas young people?

Using HONEST Accounting, and taking in the Liabilities of Social Security and ObamaCare, the Federal Government's DEBTS are ALREADY growing at Four Trillion Dollars a Year. Total REAL Federal Government DEBT (using Honest accounting) is about $85 Trillion Dollars.

Even using the Government's dishonest accounting, the Current "Official Yearly Deficits" are still astronomical: 2009- $1.4 Trillion, 2010- $1.3 Trillion, 2011- $1.3 Trillion, 2012- $1.4 Trillion.

The "official" Federal Deficit in 2012 (using dishonest accounting) is still $1.4 Trillion dollars. (The REAL Federal Deficit growth in 2012 was over FOUR Trillion).  An "official" dishonest Deficit of $1.4 Trillion when in the last 53 Years the Total Federal Surplus has only been $558 Billion Dollars. And the assholes like Bernanke keep telling us that the "Solution" is a LOT MORE DEBT.

What's the difference between Bernanke and Osama bin Laden? In my opinion Osama was only 1/10,000 as dangerous to America as Bernanke. 

The small Federal Surpluses of 1999 to 2001 were caused by the Baby Boomer Generation (70 million adults) being at the VERY TOP of their age/work/spending/ productivity Bell Curve in that 1998-2001 period. Today in 2013, the total Baby Boomer generation is over the top of its Bell Curve and on the Negative Side decline of its spending. As the 70 million Baby Boomers continue to retire and go on Social Security and ObamaCare that will ADD TO the Size of America's Exploding Deficits.

So, was the talking-head Obama whore on the TV News correct when he said that America would "Never Never Default on its Bonds!" Using Con Game lawyer words, the answer is YES, the USA will Never Default on its Bonds.

WHY Not? WHY will a Nation building MORE Debt as fast as possible always be able to "Redeem" its T-Bonds? Because the Federal Government owns the money printing press, or to be modern, the Computer. In the year 2020 YOU turn in with your $1,000 T-Bond (that you bought in 2010), and want cash. No problem whatsoever. The Government types an extra $1,000 into the Government's checking account, and then gives you a check for $1,000. YOU were paid, and every other US T-Bond holder in the world will also be "paid." The fat Obama whore on TV was "correct," the US Federal Government will NOT default on its T-Bonds.

So, YOU then cash your $1,000 Gov check, and go to Starbucks to buy your $1,000 cup of coffee. But it's the cheap cup of coffee because the really good coffee costs $2,000 a cup. Do you Get It?

The Chinese and Japanese are Starting to "Get It."

(A note to the Gold Bugs) Somewhere in the future the Democrats are going to put a 50% tax on the sale of Gold. It will be A CRIME, with BIG fines, to Buy/Sell Gold without paying the tax, and to take Gold out of America without paying the Tax. The US Government will make it a crime for anyone IN THE WORLD to buy Gold from an American without paying USA taxes, just like it's ALREADY illegal for an American to have a foreign Bank Account anywhere in the World Without Reporting it to the US Government.

Permission to Reprint. Permission to reprint is given by the author, Andrew M Molchan, to reprint, and/or quote, any of Andrew M Molchan's  1,765 essays and stories he has written over the last 40 years, including this current essay.  


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