Debt Ceiling, Bankruptcy and Civil Unrest

The Debt Ceiling


Treasury Secretary Timothy Geithner has warned that the government would hit the debt ceiling by May, 2011 and possibly default on the US debts by August. He has urged Congress to act before that date.

It took just 7 months for the National Debt to increase from $13 trillion on June 1, 2010 to $14 trillion on Dec. 31, 2010. The debt has hit the statutory ceiling of $14.294 trillion set by Congress and signed into law by President Obama last February and is now $14.6 trillion.

The federal government will default on its loan obligations if Congress fails to increase the Debt Ceiling before the limit is reached.

A debt default would throw markets into turmoil and dramatically increase the government’s borrowing costs. Defaulting on loans devalues a nation’s currency, damages its trade standing. In effect, defaulting on loans would cause stocks to plummet, investor nations to lose confidence and call in loans, force nations to use other currencies other than the dollar as their backup currency, and generally wreck the American economy (and perhaps the world economy as well).

Moody’s Investors Service reported that the U.S. will need to reverse the expansion of its debt if it hopes to keep its “Aaa” rating.

The United States is on track for an economic collapse if we are not able to control our debt and deficits. The US is basically already bankrupt on paper.  If it were not for the huge benefit that we get from being the worlds de-facto reserve currency, we would have seen problems long ago. The government is actually borrowing money to pay the loan payments on the existing loans.

If a standoff on raising the debt ceiling lasts for a significant amount of time, the alternatives to borrowing eventually may not be enough to provide the government with the cash it needs to meet its obligations.

Government Preparation for Civil Unrest

An economic collapse would result in riots and the overthrow of State and Federal Governments.

A bill entitled the National Emergency Centers Establishment Act (HR 645) was introduced in the US Congress in 2010. It calls for the establishment of six national emergency centers in major regions in the US to be located on existing military installations.

The stated purpose of the “national emergency centers” is to provide “temporary housing, medical, and humanitarian assistance to individuals and families dislocated due to an emergency or major disaster.” In actuality, what we are dealing with are FEMA internment camps. HR 645 states that the camps can be used to “meet other appropriate needs, as determined by the Secretary of Homeland Security.

The Health Care Bill also had provision added to establish a constabulary force.

Commissioned officers of the Ready Reserve Corps shall be appointed by the President:

Unified Quest 2011


Posse Comitatus is a Reconstruction Act that came out of the Civil War, and was a promise that Federal troops would not be used against American citizens.

A collapse of the US dollar however will leads to disruptions in the flow of U.S. food supplies. The government has been doing war games to prepare for a possible civil unrest problem caused by food shortages. Hurricane Katrina opened the eyes of government officials as to how they can loose control of large areas of the country.

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2 Comments

  1. Bill says:

    There is no way the Congress will not vote to enlarge the debt ceiling. Why do you think Obama was wining and dinning the Chinese president. The Chinese president was over here in the US so we can beg for a couple of trillion dollars to prop up the government for another year. However we are past the point of ever being able to pay back the loans…

  2. the truth says:

    What people need to realize is that this is all part of the master plan…….how would you get out of owing someone alot of money?……the answer is simple, make the person you owe the money to not want the money any more!!  Now you ask, how do you do that?  Well, now it gets a little bit more tricky!!  The powers that be and the government have realized that we will never be able to pay what we owe to the federal reserve bank (which is not part of the government at all) and other countries of the world.  However, our power came from the plain and simple fact of “we are good for it”….so we have borrowed ourselves into oblivian!!!!….Now, the time is coming for all of the other countries and international bankers to call in their t-bills and bonds (basically nothing but  I.O.U.’s) and the United States just doesnt have it!!!….Dont beleive any of the hype about “we have plenty of money to pay for everything we need and then some, and the federal reserve has trillions in reserve cash!!!”……WRONG!!!…….first,  all of the “money” that we have, is all borrowed! ..so essentially, any money we spend is just more money that we owe in the long run!!  We would be paying people with money that we borrowed at interest!!…….and second, THE FEDERAL RESERVE ISNT PART OF THE U.S. GOVERNMENT PEOPLE!!!!!!…..they have no interest paying any of our debts, they are a bunch of private bankers that lend money to the government …AT INTEREST!!!!…..we already owe them so why or how would they pay themselves if we default!!!!  (and by the way, you are the ones who pay the money back, with interest out of your paycheck….its called INCOME TAX!!!, makes you feel good huh!!!)……so……back to the master plan, ….how do make people not want the money that you owe them……..simple…….MAKE IT WORTHLESS!!!!!…….AH HAH!!!! ….i can hear the light bulbs going off!!!  That means you can borrow everything and anything and when the time comes, the people you borrowed from wont want your money to pay them back!!!……you need to make the U.S. Dollar worthless!!!!!……and that my friends is EXACTLY what a debt default would do!!!!!….it would essentially be a declaration of  United States bankruptcy!!!!….the rest of the world would view us as dead beat debtors!!!….people who charged up thousands on a credit card and couldnt pay the bill when it came in!!!!……downside-this country would be thrown into a hell that it has never seen, or that the world has ever seen before,….a depression of unimaginable magnitude!!!!…..upside-(for the elite bankers)-they will have everything they need to survive because they essentially stole it and dont have to pay back a dime for it!!!!…..well…..i hope everyone took notes on this quick crash course economics lesson…….because it doesnt really matter if they raise the debt ceiling or not……we will never be able to pay it back, so we are just kicking the can down the road!  If the default happens next week, good luck everyone, and if it doesnt……its just a matter of time……the sand in the hour glass is running out….and the rats who run this country are looking for a way out!!!…unfortunately…..their way out will mean you will have to suffer……the laws are already in place to turn this country into a different place if that happens, they have already thought about it!! trust me!!!……but thats another lesson entirely!!!….like i said….just a matter of time!!!!

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