Guest Post from Clint Siegner, Money Metals Exchange

Republican leaders in Congress, with the urging of Treasury Secretary Steve Mnuchin, are anxious to raise the federal borrowing limit from $19.8 trillion – no strings attached.

MD: Remember, governments “never” deliver on their trading promises. They just roll them over … and “all” rollovers are defaults … and guaranteed defaults are counterfeiting. So they’re asking to raise the “counterfeiting limit” here. There have never been any restrictions on government counterfeiting … none!

The only hitch is those pesky conservative voters who were promised restraint by party leaders. GOP establishment hopes to quietly pass a “clean” bill to raise the debt ceiling – a direct betrayal of that voter base – don’t currently enjoy enough support from other Republican members who still consider themselves accountable. So, a deal with the Democrats beckons.

Republicans technically have the power to finally honor the limit on borrowing by reducing spending. After all, Republicans control both Congress and the White House.

MD: But just like the Harlem Globe Trotters and the Washington Generals work for the same company, so do the Republicans and Democrats. It’s all theater.

The last thing most Republican voters want is for McConnell and Ryan to start cutting deals with Nancy Pelosi and Chuck Schumer for a debt ceiling hike and MORE spending. But that may be exactly how this batch of sausage gets made. Watch for a coalition of big government Republicans and Democrats to leave future generations holding the bag – yet again.

Sen. Orrin Hatch (R-UT) says any politician who opposes more debt “doesn’t deserve to be here.”

MD: As I have illustrated, no person on Earth opposes debt. All are indebted in some way to someone or something. But “more” debt? That’s another matter altogether. We exceeded the “more debt” limit before I was born … i.e more than 70 years ago. With a proper MOE process, governments would have no debts. They would be precluded from having them (as any trader is precluded from creating money) by their propensity to default on their trading promises … such propensity being 100%.

GOP Senator Orrin Hatch is scornful of anyone in his party trying to impose spending restraint. He had this to say: “Some conservatives think they can get some programs cut. Well, that’s not gonna happen… We have to pay our bills and anybody who doesn’t want to do that doesn’t deserve to be here.”

MD: But people who take on bills they have no hope of paying? … they deserve to be there? In my opinion “there” doesn’t even deserve to be. Iterative secession is the only solution.

Hatch and his friends in leadership – on both sides of the aisle – share a bizarre philosophy when it comes fiscal responsibility. They insist that the best way to meet obligations is to embrace perpetual deficit spending and simply borrow without limit to cover it.

MD: If they didn’t share that philosophy, they wouldn’t be in leadership. It’s required by the money changers who institute governments in the first place. It’s their whole con.

As far as they’re concerned, any elected officials with an opposing view don’t even belong in Washington DC.

Given that Congress has raised the borrowing cap 72 times since 1962, and that neither party has ever held the line, we can certainly agree that believers in fiscal restraint are marginalized on Capitol Hill. Representatives who bluff about fiscal responsibility, but eagerly fold at the first opportunity, fit right in, of course.

There are some hoping to see a real fight, and perhaps even a victory in the coming months.

It can’t be ruled out, but leadership is anxious to avoid any fuss and will reach across the aisle rather than consider the fiscally responsible course.

MD: Reach across the aisle? Remember the Globe Trotters?

Nevertheless, conflict over raising the debt ceiling could add to the headwinds for the Federal Reserve Note. And, in the long run, borrowing without restraint will further devalue the greenback. Perhaps more investors will be reminded of that fact in the coming weeks and buy some gold.

MD: “could add to the headwinds”? The operative relation: INFLATION = DEFAULT – INTEREST. DEFAULT in this case is certain. INTEREST in this case is way below what it needs to be to reclaim these DEFAULTs (i.e. this counterfeiting). Thus INFLATION is certain … but since it can’t be measured, lying about it is also certain.

Buy gold? I favor buying raw unimproved land in a low tax, low services county. And have lots of friends who want to come and live on it with you and help you defend it when the inevitable reset comes.

What I really favor is iterative secession … at least to the county level in my case.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

MD: We only hear this “buy gold” nonsense from people in the business of selling gold. If they believe in gold so much, why are they selling?