Debt, a four letter word indeed

There are two kinds of people in the world my friend, those with a rope around their neck, and those who do the cutting. -tuco

 There are parallels to be drawn from Tuco's words of wisdom. The spiraling out of control national debt is the noose threatening to hang us all. While those in charge of the cutting, our elected leaders, seem oblivious to our plight.

After months of wrangling between Obama & both houses of congress,  there has been a deal struck to raise the debt limit. This means we, as a nation, can go on spending money we don't have - it just goes on the federal credit card. It is the 70th time we as a nation have had our "limit" increased. Seems kind of silly to call it a limit really.  Could you imagine reaching your mastercard limit, then asking for an increase, and getting it - 70 times? 

 The agreement reached, like all good compromises,  has nobody getting what they want (need), but everybody getting a little something. Democrats get the next debt limit showdown moved until after the next election. Tea party gets no new taxes, Republicans get - well - their way, the masses get assfucked, and Gold & Silver Bulls make Bank - with a capital B.

  The   United States is the mathematical equivalent (with 8 zeroes removed) of  the guy who makes 24 grand (2.4 trillion revenues) per year while spending 39 grand (3.9 trillion budget) - Oh and his net worth is negative 150 grand (15 trillion debt).  The situation is simply not sustainable. Yet here we are. As anyone who has managed household budget would tell you, the first step is to get the spending under what you make - then tackle the debt. 

  So, after months of wrangling how do our leaders, ostensibly our best and brightest, approach this problem? The village idiots, I mean congress  decides to spend 37 grand rather than 39 - and then celebrate as though they are conquering Roman war heros returning home for the Bacchanal.  Instead of cutting spending in half, like is commensurate with the problem - we get token cuts. The kind smarmy politicians can show their constituents as proof they are addressing the spending issue. Like my dear departed dad would say, It ain't worth being the village idiots, unless you can prove it. 

  Meanwhile back on Earth, the real issue (the debt) continues to grow, unabated. In fact, they have agreed not to address the issue again until after 2012 election.  Our  political leaders are not serious about addressing the spending deficit. Which means they are not serious about addressing the debt either. So, if getting spending under control is off the table; then inflating (printing) the currency and/or default is all that is left.  

  Make no mistake, until our political focus changes - gold will head higher. In as much as our leaders have decided to print more currency - seemingly until we run out of trees - Gold bulls are the only real winners from today's deal as we recognize the US dollar and the political charade with it for what they are;  a currency in collapse and an empire in decay. Like Tuco might say, there are 2 kinds of people in the world my friend, those who get it (and buy gold) & those who don't. Which one are you?