Reply To: Re: Nobel Winner Robert Shiller Demolishes UK's Help-To-Buy Scheme

[gurusid]

And this from the ‘shutdown’ agreement – perhaps what they wanted all along???
From ZeroHedge – Submitted by Simon Black of Sovereign Man:

Slowly at first, then all at once

“How did you go bankrupt?” Bill asked.

“Two ways,” Mike said. “Gradually and then suddenly.”

The dialogue above is from Ernest Hemingway’s 1926 novel, The Sun Also Rises.

….

As part of the bargain codified in HR 2775 (which President Obama signed into law), the Treasury Department is authorized to SUSPEND the debt ceiling. In other words, for all intents and purposes, there is now NO LIMIT government borrowing.

This limitless borrowing authority will expire on February 7, 2014. But it sets the precedent that dismissing the debt ceiling is a perfectly viable course of action.

Congress has effectively removed their handcuffs… so you can almost assuredly bet down the road that this provision will be extended, and ultimately become permanent.

No one in the Land of the Free seems to care. But foreigners do. The lead commentary out of China’s state media the other day was very clear in its position:

“It is perhaps a good time for the befuddled world to start considering building a de-Americanized world.”

Watch that debt increase from 20 to 200 to 2000000 times… etc. At precisely what point it goes from gradually to suddenly remains to be seen.

Edit: Great video at ZH on what happens when the ‘interest’ doesn’t get paid on all that debt (at about 14 mins in). Hint: it first letters start with D & C.

https://www.youtube.com/watch?feature=player_embedded&v=iFDe5kUUyT0

L,
Sid.