I have been asked how the current debt crisis will affect the average person. The first thing we need to understand is that the Satanic Psychopaths like us to choose our chains. It gives them the additional cover they need to bring about the ultimate destruction of America, Liberty and anything that remotely resembles Patriotism.
They have given us two choices this time:

1. Raise the debt ceiling by a few more trillion dollars.

2. Default on their manufactured debt.
Both choices will result in the destruction of the dollar. If they raise the debt ceiling then they destroy our nations credit standing. Since they control the credit rating agencies anyway, and have held off the inevitable for far to long, this will happen regardless of what they do. Default is the equivalent of not paying your credit card bills, mortgage and car payment. You become an unacceptable credit risk  and you are no longer able to borrow money.
The United States of America is the world’s largest creditor nation. We owe more money to more people than any other country on earth. We don’t sign loan applications as a country. Instead, we issue bills, notes and bonds.
Treasury Bills: Bills are short-term debt that will expire within the next 12 months. Your CDs at the bank invest in Treasury-Bills, so do the money market funds. In fact, T-Bills form the basic foundation for most of your savings programs. Default means that these funds will fail, because the U.S. government will not honor the debt, or make any payments to satisfy the principle. It also will destroy the banking, mutual fund and credit card industry.
Treasury Notes: Notes are 10 year obligations that are purchased as an investment by your mutual funds in their bond portfolios. Again, failure to pay this debt will cause the Bond market to literally collapse overnight, wiping whatever retirement, pension and long-term savings plans that invest in them (all of them), right off the books.
Treasury Bonds: Bonds are 20-30 year debt obligations. Mortgages are tied to Treasury Bonds. Mortgage interest rates are also tied to Treasury bonds. If the government defaults, then it would destroy homeowners with variable rate mortgages, or those seeking to purchase a new home. It would also destroy the bond market and mutual funds with a bond portfolio.
This is why default is not an option. At least, not yet. Which leads us to choice number two:
Raising the Debt Ceiling:

Aladdin Bail Bonds - 9th & Market
Aladdin Bail Bonds – 9th & Market (Photo credit: shingst)

This is like an out of control debtor borrowing more money from a loan shark. It will destroy our credit rating and force us to pay higher interest rates on all future bills, notes and bonds. Currently, we just keep refinancing our debt with the Federal Reserve that issued it in the first place. Meanwhile, interest keeps compounding and we find ourselves virtual slaves to the international banksters.

Raising the debt ceiling will also raise interest rates, since we become a greater risk as an investment. Expect bond-rating agencies to trash the U.S. credit rating. The following will result:
1. Higher interest rates will mean that all existing debt will be discounted by investors, you will see dramatic losses in the bond market and those that invest in bonds will suffer accordingly. This will affect 401K plans, pension funds, and other retirement plans.
2. Higher rates also mean that those with credit cards will also watch their payments skyrocket, increasing consumer defaults and killing off what remains of the retail industry.
3. Foreclosures will increase as those with variable rate mortgages will be unable to make their monthly payments.
4. A major stock market correction as companies forced to pay higher interest rates go under, stop making their debt payments and report dramatic losses in earnings.
5. Unemployment will rise.
The eventual outcome is hyper-inflation and economic collapse for either choice. The dollar will be destroyed and with it, the American economy. Silver prices will escalate dramatically and I believe the gold confiscation act will come about through Executive Order, with the promise of stabilizing our nations’ economy through a new gold standard.
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