By Greg Hunter’s USAWatchdog.com (Revised)
The Democrats think they won the debt ceiling debate, but they did not–at least not in the long run. Nobody won when you consider the fact the U.S. needed to borrow or print more money just to pay its bills. We are running a trillion dollar a year shortfall. Yes, I know the government said the latest shortfall was only $700 billion, but that is a one off accounting trick. The sad fact is we are spending about $1 trillion more than we take in every year. This gap cannot and will not go on. That is the real problem, and Washington is not going to fix this because it will be far too painful. Cuts will be needed, and there will need to be a few tax increases too. We know that is not going to happen. What is going to happen is the dollar is going to come under attack, and that is what happened yesterday. When the dollar loses value, we pay more for just about everything. On the other hand, gold jumped. The world knows we are not going to fix this debt problem. That is why China is calling for the U.S. dollar to be replaced as the reserve currency.
Here’s another reason why the Democrats did not really win. When the smoke clears with this debt ceiling budget fiasco, there will still be a failing economy that needs to be propped up. Obama Care, or the Affordable Care Act, will be front and center. Yes, I know only one percent has been actually able to sign up, but that is just a computer problem. The real problem will come when everyone realizes that you will be forced to pay more for health insurance to get less. Poor people will be shocked at the deductibles and co-pays. They will be much higher than anyone imagined. As far as the subsidies go, where’s the money going to come from? More debt will be piled on the tab. Obama Care will be like adding a 50 pound lead weight to an economy that is barely keeping its head above water. In six months, Republicans will be saying things like ‘we tried to tell you this was bad for the country,’ and Democrats will be running from Obama Care. This will turn into an Obamanation, and many Democrats know it’s going to be a loser. Talk of the Democrats taking back the House of Representatives is delusional. That would mean the economy would have to get much better, foreigners will have to continue to lap up our debt and Obama Care will have to work and be a good deal for the country. That ain’t going to happen.
What are the Democrats going to do? Play the race card, because they got no place to go. Syndicated columnists to TV pundits are calling anyone who disagrees with President Obama racists. And if you are African American and you disagree, you “lend their racism a sheen of respectability.” Leonard Pitts, Jr., of the Miami Herald said that this week about Pediatric Neurosurgeon Ben Carson because he dared to criticize Obama Care and compare it to slavery. This looks like the game plan, at least for the far left social fascists. Funny how Democrats do not utter a word about Jessie Jackson, Jr., being jailed for several hundred thousand dollars in campaign funds being misused, while bankers steal billions of dollars and walk free.
This brings me to the biggest story that slipped under the radar during all the budget battles in Washington. It is the Iran nuclear story. Now, the Iranians want to take a year to resolve the dispute over its nuclear program. Iran says it’s for the peaceful production of energy and the West thinks they are stalling so Iran can build a bomb. I do not think the West is going to give Iran a year to settle this question, and that includes Israel. This is one gigantic wild card you need to keep an eye on because war with Iran in the Middle East will cause the global economy to implode.
Join Greg Hunter as he gives his analysis on these stories and more in the Weekly News Wrap-Up.
There is also a new story out that JP Morgan Chase is NOT limiting withdrawals or banning international wire transfers according to Forbes. Here’s the link:http://www.forbes.com/sites/halahtouryalai/2013/10/17/no-jpm-isnt-banning-international-wire-transfers-no-limits-on-withdrawals-either/