Debt Ceiling Situation means America will Eventually Default! Why?

Keynes solved the Great Depression situation of the 1930's and 40's but his model was based upon the accumulation of unsustainable DEBT (forever)! Forever is now HERE!

Today, the big issue in Washington is raising the Debt Ceiling so America can continue to kick the debt can down the road further. This mindset has been part of American politics since the end of our last great depression (1929 - 1937). The debt situation started with this new economic model called Keynesianism. It all started way back in 1934 when our then President, Franklin D. Roosevelt, needed a model so as to get out of the Great Depression. Who arrived with a new model?

It was this British economist, called John Maynard Keynes. His new model was to allow DEBT to grow indefinitely...as in the LONG RUN we are all dead. Most thinkers recognized the flaws in this Keynesian debt model (at the time), but the mindset was to get out of this great depression (now). FDR needed help and John Maynard Keynes came along with his new debt model to solve the crisis. Amazing!

And this model has solved the economic crisis for some 89 years. However, the LONG RUN which Keynes prophesied is now HERE. Debt has accumulated to unsustainable levels. The National debt is over $31 trillion. The total debt is over $96 trillion. And the unfunded liabilities are nearly $200 trillion. America has road the DEBT cycle for some 89 years (and counting). The math is now being recognized as unsustainable!

Our politicians recognize that NOTHING can solve this DEBT issue except a DEFAULT. America must eventually default on all its debt obligations and start anew with a NEW MODEL. The Debt Ceiling issue now being negotiated in Washington D.C. is merely a symptom of a problem which can not be solved completely. American is technically BANKRUPT (now) and anyone with some math knowledge can discern this reality. See the numbers here: www.usdebtclock.org.

So raising the Debt Ceiling may help us KICK the can down the road for a new more months, but it will not SOLVE anything. Our politicians must eventually SEEK a new model for our nation and DEFAULT on the existing debt. Even Mr. Donald John Trump recognized this reality in his last TOWN HALL meeting with CNN news (this week). He said that American debt can not be completely resolved with this debt ceiling issue. Just look at the math on the website above for clear evidence of the problem.

America's entire economy functions on adding MORE debt (and credit) to the markets. American consumers have over $24 trillion in consumer debt and over $1.2 trillion is credit card debt. None of this can be paid off as consumers need debt to survive. Our National government needs debt to survive. We must continue to KICK the can down the road until the SYSTEM implodes and/or DEFAULT. Default will eventually HAPPEN. The problem can not be SOLVED. A NEW MODEL is needed after the coming DEFAULT.

I have been teaching about this Keynesian debt model for over 50 years. I knew that a day of reckoning would arrive eventually. That day of reckoning is HERE (now). Our politicians (Biden/McCarthy, et al) can not solve this problem. They could KICK the can down the road for a few more months (maybe a year at most). But Americans will need to elect a NEW leader in 2024 if they desire to survive economically. Robert F. Kennedy, Jr. might be a leader who would desire a NEW MODEL. 

Biden and Trump are not leaders who desire to solve this continuing problem IMO. Biden wants continuing 'counterfeiting' of our dollar so he can SPEND more for his corrupt 'woke' policies. Trump also has not shown me any leadership on this issue. Robert F. Kennedy, Jr. may be a leader with some resolve on this serious issue for America. Now is the TIME to think about a NEW MODEL for America and also a NEW leader for America. Today's children need a model which is sustainable and which will create new freedom for their children. 

Think about my idea of totally eliminating this concept called MONEY from our planet. What is money in reality? Where does it derive from? What is exchange value? Where does this concept derive from? Is it possible to eliminate this curse on humanity forever? Give this some reflection at your leisure. What is money and what is Value? What would be a BETTER alternative for our children and their children? The current mindset of our politicians can not solve these issues. Their THINKING is flawed! Get in the arena and do your own thinking on all these issues of survival! Have a good day!

Money starts out as a proxy for 'value'. It then evolves into a government note. Later it becomes a digital unit of consciousness (nothing physical)! Where is it within our greater material universe? Can anyone FIND it? Is value and money the biggest illusion of mankind? Think on this!

https://youtu.be/MFO6OtnmEDo

I am: Donald B. Swenson, Economist/Philosopher, donaldswenson.blogspot.com.

http://kingdomecon.wordpress.com