Why Hard Assets May Save the Investor against the National Debt Ceiling

Did you know that the US has a ‘debt ceiling’? Few of us do. You know how you can effectively max out a credit card when you spend more than the amount a bank has deemed you worthy? Well, the United States kind of has that restriction. They set it themselves – actually, ourselves via our elected officials. We have set a cap of $14.295 trillion dollars.

$14,295,000,000,000 is a really huge number, so we cannot be close. Wait, we can get so close that government may have to raise the ceiling as it has done 74 times since March 1962. The US crossed the $14 trillion debt mark yesterday – hitting $14.001 trillion. Note the .001 trillion is still one billion (1,000,000,000) dollars.

So, let us say that the government, for some crazy reason does not raise this limit (although I would bet $14,295,000,000,000 they do). Then the US can not borrow any more money. All those savings bonds don’t really mean much now anyway. Why not make them worthless. Remember government pension plans, now would be a good time to make pretend the money you never saw in your paycheque never really existed and it was all a propagandized dream.

With the national debt becoming past uncontrollable, what faith is there in the dollar? What makes a country think they can lend us money and we pay them back? What makes a country think it is wise to hoard these green pictures of founding fathers to fund their treasury?

That dollar is backed by the promise that the US justice system will be the same tomorrow as it will today, and United States citizens still live in the “Land of Opportunity,” but that ounce of gold holds no negative connotations and well, has no strings attached.