The airwaves are going to be flooded with talk of Congress’ debate over raising the US debt limit. Most of those making noise will be justifying their support of raising the ceiling because, let’s face it, if a few players on Wall Street can be considered “too big to fail”, there is no chance that the government that has aided in keeping them from wearing a scarlet letter “I” will be allowed to be branded guilty of the same crime of “Insolvency”.
The problem Republicans have is that many of the freshmen are riding in on a wave of backlash against the bailouts, TARP and outrage from those who have been “Taxed Enough Already”. They must confront the fact that if they hold true to the mandate that brought them the job, they would vote against raising the ceiling and thus be saddled with the burden of the economic fallout this brings as the dollar would all but surely collapse.
Democrats are faced with the dilemma of having to face the fact that the backlash has eroded their control of the House and the collectivist solution of bailing out anyone with their hand out has them painted squarely into the same corner as Bernanke and the Fed as the real culprits in this economic debacle. Now they are forced to move toward the center in an attempt to slow down the inevitable demolition of the dollar while spinning their actions to appear not as financial conservatism, but sound monetary strategy that they “knew all along” would be necessary.
The situation does offer an opportunity to the Republicans to effectively revolutionize US economic policy IF they can take a page from the collectivists’ playbook and not let this crisis go waste. With the vote to raise the debt ceiling being critical to stave off an almost certain demise of the dollar, the Republicans may ransom their votes to force approval of a balanced budget amendment.
While the proposal of balancing the budget around the calendar year rather than the business cycle seems folly to some economists, it is motion toward enacting monitoring policy to prevent future catastrophic deficits. Such moves have carried favor in the House and the Senate at various times in the recent past. Senators Lindsay Graham and Jim DeMint of South Carolina last proposed such an amendment to the Constitution in 2007 and reintroduced it last year.
What does all of this mean to those who are not waiting for permission to survive?
- If Congress fails to delay raising the ceiling on the national debt limit, the ramifications on the value of the US dollar are ostensibly catastrophic. Commodity prices for items such as silver, gold, copper and the like would climb considerably.
- If the debt ceiling is raised, the trade off is a delay in the dollar’s collapse allowing more time for those with foresight to prepare and engage in alternative forms of wealth security.
Regardless of the outcome of the vote, 2011 has begun with the American Open Currency Standard engaged in a number of new initiatives including state and local legislative actions, new currency evolution, expanded marketplace development and production capacity and efficiency. All of these efforts are focused on bringing potential solutions in the form of complimentary currencies and services to market as quickly as possible. The last year saw a considerable increase in the number of groups and communities that introduced private complimentary currencies and an increase in the number of people who reportedly engaged in private trades.
Stay tuned for more solutions…