The US Government has (nearly) Defaulted on the National Debt!

[David Merrill]

In conjunction with my Financial Peace* University classes, I have retained the basic collection of Letters about the recent Debt Ceiling issue - mostly from Timothy F. GEITHNER.


From my History of last week - more recent first. Interestingly I caught the Denver Post article within an hour of cyber-posting Friday night. Our Senator BENNET wrote directly to Geithner and got this response (cc: BERNANKE and LEW at the OMB):


...well, how about that? The only link, the Colorado Independent article is down. I cannot find the .pdf of the actual letter. But I printed it out for Sunday School class yesterday morning and can scan that.

GEITHNER to BENNET.

[It really satisfies my conspiracy theory when I think maybe I salvaged a letter that has been scrubbed...]

http://www.treasury.gov/initiatives/...debtlimit.aspx

This one cropped up while looking around:

http://www.treasury.gov/connect/blog...%20Boehner.pdf

Here are the two earlier ones I have already linked.

January.

April.

Here is a fun read:

http://www.treasury.gov/initiatives/...ct%20FINAL.pdf


The April link there - that holds something in the implementation of corrective measures that is very disturbing to me. GEITHNER, as I understand things, is going to start offering mortgage-based securities for sale as part of his measures, in the letter to BENNET, to keep the Treasury running in honor until August 2nd - or Congress approves a new Debt Ceiling - whichever comes first. The disturbing component is not so much that this securitization on home foreclosures is what caused the Subprime Mortgage Crisis of August 13, 2007 that led into the Global Financial Crisis. The disturbing thing is that the securitizing is gambling on American homeowners losing their homes to foreclosure!

Now, as of today, the US Government is gambling on American Homeowners being foreclosed on, rather than the original charter - to protect the property rights of Americans...

Does anybody else find that disturbing?



Regards,

David Merrill.


* Financial Peace University. - Understanding the character of a peaceful inhabitant is helpful to comprehend the significance in the numero-linguistic interface of these words and the timing of author Dave RAMSEY infiltrating the American Christian church at this time - teaching a sublime message - get out of debt.