In 2015, Congress suspended the ceiling, which let the government borrow as much as it wanted through March 15, 2017. On that date, the total national debt was $19.846 trillion, and the government can't exceed that limit without approval from Congress.
In the meantime, the government uses all kinds of accounting tricks to shuffle the chairs around on the Titanic and all manner of vultures will be fighting over who gets the bounty of stolen funds extorted from Americans.
This type of thing has been going on for nearly a century.
The very first “debt ceiling” was put in place exactly 100 years ago, in 1917, and nearly every year since then a group of parasites working for stolen money (taxes) gets together in a place called the opposite of progress, Congress, to act like they would ever shut down the very thing that employs them.
It’s an exercise in stupidity, but it does lead to the question, what would happen if the US federal government shut down for good?
In other words, what if the United State(s) actually was the United States… and not the United State.
First, all of the countless wars and occupations undertaken by the Department of Offense would cease. It’d be hard to imagine that the states of Texas, Vermont, and Idaho would feel the need to protect their particular interests in Syria and pay directly for the costs. In fact, it sounds silly, doesn’t it? Could you imagine hearing the news that Idaho had just accidentally blown up a school full of 200 children in Syria while fighting the CIA’s ISIS?
It seems silly because it would be. It’s only through decades of government schooling, pledges of allegiances and hundreds of pro-war propaganda films out of Hollywood every year that makes anyone think the US government occupying half of the Middle East is anything but a massive crime against humanity.
So, with no US federal government, there’d be almost no more war in the world. That alone is a good enough reason to get rid of it.
What else would we lose if the federal government were to shut down for good?
Well, actually, very little else. You see, the US federal government takes almost all the money it extorts US tax slaves for every year and spends it on conducting terrorism (war) and much of the other expenses are just to keep all of its Ponzi schemes running.
The two biggest Ponzi schemes are Socialist Insecurity… or what they call Social Security… and Medicare. These two systems are so bankrupt that they soak in most of the tax revenue and take up much of what is called “mandatory spending” in the budget.
For example, because of the Tenth Amendment, most education policy is decided at the state and local levels, meaning that really, all the Department of Education does is redistribute taxpayer wealth in the form of student loans and government grants. Essentially, they siphon public money and after paying their 4000+ parasitic employees, the rest of the collected money - around 70% - goes toward making loans and grants that should be made in the private market.
Or you could take for example the “Department of Health and Human Services” (HHS) which actually is a major disservice to the American people.
The Department of HHS includes the FDA, CDC, and the National Institutes of Health. And as many now know, the FDA has approved prescription and over-the-counter drugs that knowingly have killed hundreds of thousands of people annually, has allowed an increase in irradiation of the food supply, and to top it off, has covered up the dangers of vaccinations. Not surprisingly, the FDA has ties to companies like Monsanto and Bayer.
And pretty much every other agency of the federal government is similar… either doing nothing that needs to be done or making things worse than they already are.
So, as you can see, if the federal government were to “shut down” for good, all that would really happen is most of the wars in the world would end… which is obviously a wonderful thing… and a ton of communist style central planning agencies would cease to exist freeing up not only the marketplace but a lot of capital that is wasted on these boondoggles.
And, of course, about 2.7 million people with absolutely no skills or capabilities in the free market, former federal employees, would have to find something of value to do for their fellow man.
There would be one massive issue, however. If the US government were to shut down and to renege on its $20 trillion in debt it would cause a worldwide economic and financial collapse and depression that would make the 1929 Great Depression look like the glory days. It would forever be known as the Greatest Depression and people would warn forever more into the future to never allow government to grow to the size of the US government for the devastation it brings when it all inevitably collapses.
Fortunately, the US government reneging or defaulting on its debt is going to happen whether the US government shuts down now or not. It is already past the point of no return.
And that’s why you should be preparing for that eventuality. Whether it happens now, which is unlikely, or happens quite soon, which is 100% guaranteed, you should be preparing for it.
For this reason, we are offering our ebook, Getting Your Gold Out of Dodge completely free. It normally retails for $44.95, but we are offering it for free to help as many as possible prepare for what is coming.
If the US federal government were to shut down and never reappear it would be one of the most wonderful moments in human history. Wars would cease and millions of people currently held in concentration camps in the US for “victimless crimes” would be freed. And trillions in funds would no longer be wasted and could be put to productive use which would cause a worldwide boom unlike any seen before.
But, before that happens we’d have to see a collapse of biblical proportions. Those who are prepared for it, such as TDV subscribers (see more here) stand to not only survive through the collapse, but to profit immensely afterward as they will be some of the very few who make it through the collapse with their assets intact.
In the meantime, the next time someone tells you that they heard the US federal government might “shut down”, tell them, “Good!”
About the Author
Anarcho-Capitalist. Libertarian. Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world’s freedom, investment and cryptocurrency conferences including his own, Anarchapulco, as well as regularly in the media including CNBC, Bloomberg and Fox Business. Jeff also posts exclusive content daily to the new blockchain based social media network, Steemit.