Tuesday, September 4, 2012


By, Chris Rossini
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To The Federal Government:

Looks like your debt has just hit $16 Trillion.

You've embarrassed yourself enough.

Time to come clean and default. Listen to Murray Rothbard (here) and Ron Paul (here).

I know...you have a central bank that can print money and purchase your bonds. In doing so, you default indirectly by paying your debts with debased money.

Pat yourselves on the back, that's pretty slimy.

But we're feeling it. Our bills are rising and standard of living is falling. Thanks for forcing us to absorb the blow for you by the way.

You're playing with fire. People can only absorb your inflation to a point.

If you don't default outright, you run the risk of bringing everything down with you.

Ludwig Von Mises warned you:

"If the credit expansion is not stopped in time, the boom turns into the crack-up boom; the flight into real values begins, and the whole monetary system founders."

You've boxed yourself in.

Do the right thing.



  1. We should only be so lucky. I do like seeing my metal climb though.

    1. I know right!

      Until you realize its not the value of the metal going up, just the value of the notes going down...then its kind of just a push.

    2. I'm well aware, but as it stands right now the price of metal climbs. The lack of purchasing power is fine by me for the long term.

  2. On Pg. 60 of "Democracy: The God That Failed" by Hans-Herman Hoppe he lists the U.S. Govt. Debt at $6 Trillion Dollars. The book was released in 2001, so in just over a decade they have tacked on another $10 Trillion. Still reading this book, but what he wrote has unfortunately all come true in terms of the state, and exploding debt. And this book was likely completed before 9/11 and of course 2008, when the state clearly showed its hand in terms of the Fed, To Big To Fail, bailouts. A plug for one other book, "Beyond Democracy" by Frank Karsten and Karel Beckman. It is not lengthy, but excellent for the average reader to understand what a disaster Democracy has become.

  3. And the sad thing is, had Bush maintained the surpluses that were made during the last few years of the Clinton administration when Clinton had to deal with a fiscally conservative Republican Congress and Senate, the debt would have likely been paid off by 2010.


    What could have been. Of course, the Federal Reserve would have still created the dot.com and housing bubbles under Alan Greenspan, but the American economy would have been in much better shape if the national debt were paid off. Oh well.

  4. Without any courage of any conviction the oligarchs of the state will choose to "Default" through inflation. Anything else would be to admit failure, and they can't do that.

  5. Anonymous, the sad thing is that you actually think that the Clinton surpluses would have paid off the debt! The surpluses under Clinton were the result of Greenspan's expansionary monetary policy, which inflated asset prices and gave the government something that looked like wealth which it could tax. The surpluses were no more real than the 20% annual appreciation in the "value" of the homes in Southern California.

    It was the inflating of the bubbles you reference that funded the surplus. It is the deflating of those bubbles that is wreaking havoc on the economy, despite the best efforts of the powers that be to frantically try to pump some air back into them.

    Eventually the piper must be paid, and he is piping awfully hard...

  6. Well said, Mr. Rossini! But all here know that this will not take place - it can not take place - in fact it is totally and utterly impossible.

    You are asking them to "do the right thing" - to take out their own balls, place them squarely on the chopping block, and filled with good humor, love of country, and overriding sense of personal responsibility, cleanly bring down the cleaver. No sir, they are (as many of us are) simply too invested in the current dysfunctional, failing, criminal system to take the honorable way out.

    Most of us are here at EPJ because we have seen the writing on the wall. We know without doubt that the system is going to collapse, it is now only a matter of time. We intellectually huddle together against the cold with like minded souls, watching the approaching cataclysm, knowing there is nothing we or anyone can do to stop it, or even escape it, because for the first time in history it is global in scope.

    "Crack-up boom" is a wonderfully descriptive term, but gives one little sense of the extreme hardship, turmoil, and violence that can be involved in actually living through one. We all are going to have to make peace with the fact that there is no "White Knight" riding in to save us. Such stories are for children and the mentally infirm. It will be up to us as individuals and communities to look after each other. Many will not make it, but many will.

    "That which does not kill us makes us stronger." Friedrich Nietzsche

    I, am Spartacus

  7. Not to worry, folks, Mike Norman is here to point out that the debt is nothing more than 1s and 0s: http://mikenormaneconomics.blogspot.com/2012/09/the-us-16-trillion-debt.html

    Just in time, Mike!

    Now, why would the government set up such a complicated, convoluted monetary system (a monetary system which is SO complex that only the MMT crowd truly understands its "operational realities"), when they could just as easily have kept a commodity-backed, market money and told people "You owe X% of your income/wealth this year"?

    That's a question Mike Norman isn't asking.