Getting back to the Sacred Cow discussion. I hope that some have read my earlier (long) posts and have had a chance to do a little research. I hope you found my links informative. These posts represent many hours of diligent research effort, much of which had challenged my thinking and caused me to shift positions. I am not a conspiracy theorist, however there is evidence of a grand manipulation at a high level of world banking.
The US Dollar is already in process of loosing it's Global Reserve Currency, soon to be replaced by the Chinese Renminbi. This is already happening and we can't stop it.
http://www.businessinsider.com/renminbi-soon-to-be-a-reserve-currency-2013-9Every dollar bill that the Fed prints is devaluing the US Dollar. There will be a massive destagflation of the dollar when the s#$% hits the fan. Much of these newly printed dollars have not made it out into the wild yet. When they do, many people around the world are going to loose value. There are big stakes here.
Mathematically, we have already gone over the fiscal cliff. I am not a mathematician, so I welcome any feedback from one after crunching the numbers, perhaps there is something I am missing in the equation.
http://www.usdebtclock.org/Look at that bottom line, Yikes.
The US Debt is wholly vesting in US Treasury Bonds. There are regular auctions of these bonds. Anybody familiar with this site?
http://www.treasurydirect.gov/RI/OFAnnce 17 Trillion of these bonds are out there in the wild right now. We not only have to pay the interest on these bonds, but when they mature they need to be paid back (if they are not rolled over). The Fed printing bills, devaluing the dollar is allowing for a very low interest rate. This can't last forever, interest rate will by necessity have to rise back to common levels. Right now .25% on 17 trillion is about 4.25 Billion - this interest rate will not send us into default if the Debt Limit is not raised. We have to pay it first, and worry about cutting in other areas to avoid a default.
What is not being said is that when (not if, but when) interest rates return to normal levels 5 to 6% the interest on the debt explodes. We are now talking about 85 Billion per year (on interest alone). This will certainly happen as we get closer to the US Dollar loosing it's Global Reserve Currency status.
Historically, other currencies have lost this status and have survived. The British Sterling is a prime example, and the reason it went well for them was due to a very long transition time.
http://www.worldfinancialreview.com/?p=511The errors made by the Bank of England (and with a little help from George Soros- shorting the pound) the Pound is on it's way down again. This article put 2015, however I hold the position that this is already underway (I watch world currency values)
http://www.huffingtonpost.co.uk/adrian-ash/the-pounds-littleknown-crisis-of-2015_b_2440371.htmlI understand many here do not like long posts (research does involve reading--which many do not like to do anymore). There is much more to support these subjects, and I welcome dissenting comments, or those seeking clarification. I am not offended by it.