Zero Hedge reports:
America’ new debt ceiling of $16.3 trillion, or 107% of GDP is now just a formality, about to be interrupted by a little circus clowning.
1.2 trillion dollars is enough money to:
- Buy 240,000,000,000 $5 value meals. Which would feed two meals a day to 120,000,000,000 people; alternatively, it could feed the population of America two value meals a day for roughly 400 days.
- Buy 600,000,000 $2,000 televisions or computers. This would be enough to provide a new big screen TV AND a personal computer to every single citizen in the United States.
- Buy 40,000,000 $30,000 vehicles. There are presently ~137 million automobiles in the United States. So in other words, 1.2 trillion is enough to replace roughly a third of all the cars in existence in the US.
What I want to impress upon you is the fact that the resources those 1.2 trillion dollars will control will not be used to produce new cars, new TVs, new computers, or meals for anyone. It will go toward bombs, tanks, aircraft carriers, wealth redistribution schemes that transfer money from the young into the pockets of the old, bank bailouts, crony industries, and other fascist entities that produce nothing of market value.
Resources in any given economy are finite. Money is simply a representation of who can control those resources. When the State prints money by issuing new debt, it is seizing control of real resources that could go to produce things of value for consumers. Instead of letting the private sector put those resources to productive use, the State will take those resources and burn them in a pit of destruction.
Your food will become more expensive, your cars and energy costs will become more expensive, in fact everything you use in your daily life will become more expensive because the State is taking those resources away from people who produce things that others want to voluntarily purchase. The State can not magically create more resources simply by printing money. Every dollar the State prints takes real food out of real people’s mouths.
In essence, the State is about to take your Big Macs and flush them down the toilet. Sorry citizen, but we need more bombs, more police, more laws, and more chicanery paid for at your expense. There just aren’t enough of you behind bars or living in poverty yet. Further, I haven’t even touched on the problems that come from having a debt ratio that is 107% of a country’s GDP.