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The New York Sun: America Defaults

In respect of the fiscal fight underway this weekend in the Congress, The New York Sun is in favor of recognizing that America has already defaulted on its obligations. The default has become evident in the collapse of the value of the dollar to below, at the moment, a 1,600th of an once of gold. It has plunged to as low as an 1,800th of an ounce of gold during the Obama presidency from the 860th of an ounce of gold at which the dollar was valued at the start of his first term and the 265th of an ounce of gold at which it was valued at the start of President Bush’s first time. This collapse is a default.

This is a context in which lifting the ceiling on the federal government’s debt, one of the measures now before the House, is a kind of fiction. What is the difference between refusing to pay a debt and paying it back with something of less than what was borrowed? What we favor is an advance to the recognition of the monetary role of gold and silver. This is the constitutional legal tender. It is American bedrock. It means that lifting the ceiling on what the federal government is permitted under the law to borrow is a meaningless gesture absent certain reforms.

The most important of these have already been introduced in the Congress. One of them, a bill to audit the Federal Reserve, has passed the House by a wide, bi-partisan majority. That a measure has been championed for years by Congressman Ron Paul. A second reform is another of his bills, the Free Competition in Currency Act — HR 1098 — which would end legal tender paper money and permit the minting and circulation of privately issued coins and notes. A third measure, championed by Senators DeMint, Lee, and Paul, would remove taxes on gold and silver coins that are recognized by either the federal government or any state as legal tender.


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Limit Buying

Chinese products and watch all hell will break loose there. What are all those hundreds of millions peasants that were driven into the cities going to do without sustenance and shelter?

China will become the new Syria then imo.


Caveat Emptor

"What is the difference between refusing to pay a debt and paying it back with something of less than what was borrowed?"

Night and day. All loans and investments carry risk. To say China was unaware of this risk is absurd because they issue fiat currency too. Guess who they learned that little trick from?

Moving on, given as China is engaged at the national level in economic acts of war and sabotage on our nation. UTTER REPUDIATION OF OUR DEBT TO CHINA seems appropriate. If this results in total trade embargo I guess we'd have to start making our own cheap, disposable plastic crap again.

Most of those who think so actually don't and most of those who think sew actually rip.

In debt to China?

I thought the Federal Reserve was the guarantee of the debt? Screw the fed!

When Fascism goes to sleep, it checks under the bed for Ron Paul!

Smudge Pot

What is your opinion on usury?

LL on Twitter: http://twitter.com/LibertyPoet
sometimes LL can suck & sometimes LL rocks!
Love won! Deliverance from Tyranny is on the way! Col. 2:13-15


the very term itself is in a moral/ethical construct and contract law supersedes this to whit:

1. both parties had appropriate disclosure in other words if you took a loan from a pawn broker and the next day you complain about the deal from a biblical perspective all that is is a disingenuous attempt to cover for your own mistakes.

2. Anything less than repayment for this bond represents breach of contract and....

3. you are liable in civil court.


Most of those who think so actually don't and most of those who think sew actually rip.

Wise words indeed

and yes screw China. Ross Perot hit that one out of the ball park

"You Cannot Stop An Idea Whose Time Has Come"

Somehow, I just can't

hear Ron Paul saying, "Screw China."


...not in those words but investers, even sovereign countries, know that there is a risk to buying bonds. If any invester were to look at our books, which are available, and still wish to invest then it is to their own peril. Ballooning un-Constitutional government should not be carried on the back of the poor and I believe that Paul would almost certainly allow us to default on some of the debt.

I guess I'm not alone