As you watch the United States Congress and the Obama administration lurch toward the financial collapse of the American economy, and as the international credit rating agencies are poised to downgrade the US. AAA credit rating, don’t expect Obama to do what is best for the country. Expect him to do the opposite.
Regardless of what the Federal Reserve does now, soon the demand for American debt will wane. The world is rapidly seeing us as less than credit worthy and a declining power. In order for the US to attract buyers for our riskier debt, interest rates are soon to spike, making our cost of government soar from $3.7 trillion to even far more unaffordable levels.
Whether Congress agrees to raise the debt ceiling or not, absent a massive reduction in federal spending, the United States government is soon going to be unable to meet payroll and its massive other obligations. Once he is unable to count on hundreds of billions fiat money, Obama will not cut the new employees he’s hired since inaugurated in 2009, the thousands of new apparatchiks at the EPA, Energy Department, HHS, and the IRS.
He will move to close down national parks and suspend social security payments. He will move to inflict the greatest amount of pain on the American public possible. Amidst the resulting downward economic spiral and chaos, what could arise is the very real danger that our ability to fund military and intelligence operations could be interrupted, leaving us unable to actively interdict rogue plots aimed at our overseas troops and assets as well as American cities. Moreover, it might well signal to enemies such as Iran, North Korea and possibly even China, that the time to strike has arrived.