As much as we're tired of discussing it And you're probably tired of hearing About it we have to discuss this issue That we're facing over the next few Weeks because it could very well be the Proverbial straw that breaks the camel's Back I'm talking about of course the Debt ceiling and before you click away This video is going to be a little bit Different than our previous videos on This discussion we're going to look at This issue from a few different Perspectives you may not be aware of I Recently did a poll in this issue asking You the community what you think is Going to happen a full 53 percent of you Selected that you don't think anything Will come of this and like times before When we pushed up against the debt Ceiling in this proverbial game of Chicken one side of the political aisle Blinked and it amounted to nothing and I'd like to believe that's what's going To happen this time around as well I'm Personally 50 percent kind of like the Community about 50 50 on this issue but I'm leaning a bit toward the direction That this could be the time when one Side of the political aisle does it back Down which will and I choose this word On purpose forever impact the standing Of the US dollar as a World's Reserve Currency and don't make the mistake of Just simply dismissing this or
Considering it business as usual or Other people's problems if there is a Default things will likely Fall Apart Quickly and the US will never really Regain what it's about to potentially Lose and I think that's the takeaway Here this is not a singular event that We simply move on from it will follow Our nation the rest of our lives in this Video I'm going to quickly explain the Debt ceiling in simple terms but the Main focus of this video will be more on What may happen next if this does not Get resolved some will say that no Increase should happen until there are Spending cuts others will say that the President should use the 14th Amendment While some legal Scholars argue that he Can't and others are pushing just to Raise it still others are encouraging That we just simply let it blow up I'll Take a look at each of these there are Just two weeks before the US is Technically unable to pay its bills Anymore it's really economic suicide if We get to that point I'll also let you Know what you should be doing now to Prepare for this you'll also want to Watch to the end because we skipped a Giveaway last week so I'm going to put In two giveaways in this video and I'll Explain a little bit more about how you Can be eligible for that so let's go Ahead and jump in what is a debt ceiling
Let's just briefly explain this the debt Limit or debt ceiling restricts how much The federal government can borrow to pay Its bills and allocate funds for future Investments almost every year the Government spends more than it collects Is in taxes that's the deficit now to Make up the difference it borrows money Which accumulates over time that's Called the debt now when Congress Appropriates or directs government money To be spent the government is obligated To pay those funds creating a bill that It must pay a Congress has increased or Suspended never reduce the debt limit 78 Times since 1960. I have covered this More in depth in some other videos which I'll link to in the comments in the Description section below if you want to Do a deep dive into the meeting in History a bit more now you may remember The last considerable debate on this in 2011 just after the 2008 recession when Military benefits and pay got held up And some federal workers were furloughed Then Congress stopped agreeing to pass Annual debt limit increases and they Pass short-term limit increases instead A pattern then emerge where these Debates be became more contentious with Each vote What happens if it's not raised I cover Most of what will happen in a video that I did a few weeks ago again I'll link to
That Below in that video I cut through The BS and the media sound bites to try To explain the real ramifications of the Ball so I invite you to check that video Out if you want to find out more in a Nutshell not raising the debt ceiling is Like spinning money but ignoring the Past two notice immediate consequences They include postponing retirement Account payments for the federal Employees and holding up paychecks for The Military Department of Defense and Other essential workers now Beyond just A military federal employees include Food safety inspectors air traffic Controllers border patrol and Customs Personnel postal workers FEMA Coast Guard reservists disaster management Personnel housing and national parks to Just name a few now also payments for Ongoing Federal contracted projects such As things like Bridges roads airports And infrastructure they would all be Held up payments to Social Security Medicare welfare and food stamp Recipients could be suspended as Administration would have to pick Between sending checks to seniors the Poor and others or making interest Payments on the debt now Federal Contracted construction projects for Bridges roads airports and more could Also be suspended in the past a similar Standoff led to a 20 percent drop in
Major stock indexes wiping out trillions In household wealth and impacting Retirement accounts now people postpone Large purchases because of their Financial insecurity so the real estate Market could freeze over even as Interest rates pushed to eight percent Or higher new construction grinds to a Halt in these scenarios some estimates Suggest that more than 8 million jobs Could be wiped out in a deeper recession Inflation are guaranteed here at home This would trigger a recession job Losses and a freeze in the real estate Market and the global impact would be Severe with the dollars Reserve currency Status being quickly eroded in countries Increasingly turning away from the U.S It would give a healthy boost to the Autocratic and communistic Nations Comprising bricks who are already Seeking alternative currencies to the United States dollar it would also erode Global confidence in our political System damaging our standing in the World now these scenarios are not Extreme but they're actually based on Past debates and here's a kicker even The possibility of these events could Slash our credit rating in a road Confidence in the U.S economy and the Dollar for years to come the unknown Consequences of default make a situation Even more dire as the U.S has never
Really defaulted before How this changes the world So can we just let it all blow up in Default on paying the bills due on all That money that's already been spent now Some theorize we should break the cycle Of spending more than we bring in in Inflating the national debt consider it The hard reboot crowd's philosophy the Difficulty here is that a reset is not Guaranteed and millions and millions of People will feel the pain perhaps most Importantly though defaulting would Erase overnight America's influence on The world built after World War II of Course there are going to be people that Will say good to that as well summer Accelerationists whose philosophy is That we should suffer a societal Collapse and start anew I think there's A video ideal here that I may explore Later spoiler alert when economies do Crash in almost every single instance The ultra wealthy only become more Wealthy as they always do the same thing In these type of downward Cycles they Snap up assets at bargain prices and the Poor become just more poor it's not the Other way around but I digress with Certainty the default that lasts even a Few weeks will plunge the world into a Deep deep recession many countries would Challenge supplies to Ukraine America's Ability to enforce International conduct
Would be question and Challenge and Likely China would see this decline of The U.S economy and the economic Instability as an opportunity to make Territorial gains that would not be Challenged as a whole brics would get a Booster shot in the arm and an Alternative currency to the dollar for International transactions would rise Overnight and the U.S dollar would Forever be in competition having lost Its once vaulted status Russia would Subjugate more countries and harvest Their gold as they're currently doing in Sudan to further support invasions at The absolute very least the fall of the Dollar off the world stage the resulting Recession or depression and the slowing To a crawl of the World Trade would Force the U.S into dark isolationism Punctuated by poverty and a lack of Essential Services let that sink in for A minute now complete default will Forever alter America's standing in the World and forever change how we Negotiate our finances we will no longer Have the upper hand in global Affairs or Trade deals and people need to Understand this that all sounds super Fun right Is our solution Oddly enough the closer that we get to The estimated date when we run out of Money to pay the bills which is June 1st
The least likely any substantial change Will occur any actual legislation would Take longer to craft than the time Remaining before we run out of money the President and the GOP they remain Divided over the debt ceiling the house Speaker has put forward a plan called The Limit save grow Act and the President will surely veto it because it Really According to some economists lack Specific Cuts but proposes to cut Several measures that he fought for in The infrastructure investment in jobs Act and if you look at what is happening In DC it's like we're all on a Driverless bus careening towards a cliff And simply blaming each other for the Fact that there is no driver if the war In Ukraine were to seize liquid natural Gas oil and grain supplements stabilized Worldwide Global Financial markets were Less speculative it's possible that Things could get better perhaps even Improve but those are too many Conditions not likely to be achieved Even in the next few weeks such an Exertion of executive privilege would Immediately be challenged in the courts At this point though that may be the Only viable option for it if members of Congress cannot come to an agreement and We want to avoid a dead default another Party wants to be caught holding the bag On a shutdown and the destruction of the
Economy and all the while they're Mutually holding the bag until the very Last second they can and that could Easily result in a misjudgment with a Point of no return is there may yet be a Compromise or solution but it's really Murky at best in the deadline it's going To be here very very soon now remember We don't have to get to these extremes Before Millions suffer as we Collectively get closer to that critical Date in the debate and blame game Continues without any substantial change And how things are done you can expect The accounting maneuvers of the Treasuries Extraordinary Measures to Become more sweeping and severe you can Expect that the US dollar in confidence In the US economy is going to continue To decline as well America's influence Around the globe you can expect that Progress will be put on hold the Recession will deepen inflation will Move to double digits and millions will Suffer from employment housing and food Insecurity now we're still in the early Days of this but the crisis will swiftly Come to a head giveaway for this week's Giveaway we'll give away 12-pack Portable water purifier packs to One Winner in one second after Trilogy to Another and to be eligible for a chance To win either of these giveaways just Simply post a comment below and click
The thumbs up icon to like the video for Following video I'm going to use a tool To draw a winner from the comments on This video randomly and for the last Videos winner of the dual fuel camping Stove the winner is a subscriber girl de Burro I'll be reaching out to you Shortly to get that sent to you what can You do If it's going to happen and we're going To get right up to that deadline or Beyond it confidence in the US economy And the dollar is going to continue to Evaporate around the world inflation and Interest rates will soar and there's not A whole lot that we can do about it to Avoid it while there are probably clever Investment strategies out there for the Super rich and members of Congress to Really insulate themselves even profit By Short Selling America I'm not sure There's enough there to keep the country From long-term irreversible damage that Said for everyday people like you and me There are several things that we can do One recent commenter summed it up by Simply writing that we should continue Doing what we've been doing all along Which is preparing anticipating this Default possibility and continuing your Prepping is really the key to weathering The storm following a default prices Across a board would experience Significant fluctuations as everyone
Attempts to assess and factor in the Increased risk the cost of imported Goods is expected to rise and there Would likely be a spike in oil prices as Petro States shift to to pricing oil and Alternative currencies Panic May grip The population as media outlets and Other sources highlight stories of Default and potential shortages an Unfounded fear could lead to panic Buying resulting in sold out supplies of Items such as ammunition and as we've Seen recently toilet paper now Additionally the cost of food is likely To increase if you have a three-month Supply food as we recommend in our Videos similarly named which I'll link To Below in a garden or some other Source to produce or acquire local food You're going to be insulated from both The dramatic price increases the Panic Buying and the inevitable disruptions of Our Food Supplies what you're doing with Your food supply is buying yourself time To plug in your own solution to the Larger problems as a recession worsens In unemployment skyrockets the pressure On infrastructure becomes greater as Routine maintenance repairs and new Systems is going to continue to fall and When these systems go offline they are Slow to come back online Alternative sources of water and energy Are essential and again I have to refer
You to the videos I've linked to in the Comments for more ways that you can prep For the eventuality and from a financial Standpoint the only silver lining in the Cloud is we all suffer the devaluation Of the dollar together Rich poor young Or old our dollars all spin the same They buy less and it takes more of them And all-out dramatic collapse is less Likely than a long drawn out series of Failures and collapses and because of This it's important to position yourself To survive through it and Thrive coming Out of it I would encourage you to Implement small strategies as we detail In the recession-proof guide which we'll Make available for free it's just a Downloadable guide that we'll give to You in the link in the description Comment section below so many Financial Lessons aren't passed from generation to Generation let's be honest the systems Change still there are some constants That you can apply today to get you Better position to face a chaotic and Declining fiscal future as the old Saying goes a recession is opportunity In Wolf's clothing and really coming in On the hills of a global warm a current Recession and several high-profile Financial institutions filling this debt Ceiling debate could not come at really A worse time and I'll be honest with you Um this time has the potential to be
Worse than the previous Market downturns That we've experienced if you felt the Recession of 2008 and I remember what That was like going to that time there's A lot of uncertainty I assure you this One could potentially be far worse it Also has some of as of yet unforeseen Possible for the collapses like more Banks in the entire commercial real Estate market the only thing you can do With certainty to brace and prepare for It is to prep with every downturn Typically there is a recovery where we Brush ourselves off and hopefully learn Our lesson but hopefully and it doesn't Appear that we're going to see that for Perhaps the rest of this decade your Preps are really a life raft in these Scenarios Let me finish by saying this I would Encourage you to keep preparing whatever It is you're doing whether that's Storing up food working on gardening Building a water Reserve developing Skills working on energy security Building again there's so many different Aspects of this if I were someone Watching this video and you're saying Look I'm just starting out I have no Idea where to begin my advice is to Focus on food again I'll post a link to A video that we did a while back about Three months is all you need as a Prepper we go into a lot of detail about
That very very specific video I would Encourage you to build with your Community Whether that's a church whether that's Family whether that's neighbors whoever And whatever is your community build With them Is there someone that you know that Needs help in your community I think This is going to be the time Um where We're going to have to help each other More than usual if this situation plays Out and even if it doesn't uh we're Clearly in a time where people are Stretched then and if you're in a Position to help I would encourage you To do so it's uh that old principle of Sewing and reaping when you give when You help others the hope is one day You'll get that in return that principle Does it always play out but there's Nothing wrong when it's in your ability To help others that need it especially Those that are in your group your family Your community that really need it Again I look at this time as not a time To be pessimistic it's just another Um indicator to me that we're living in A time of transition uncertainty hey Fingers crossed nothing happens that This is just another game of chicken That we've seen time and time again this Debt ceiling issue we get it resolved we
Move on and I'd love to believe that I Like I said at the beginning of the Video I feel like we're kind of on a 50 50 split here I could really see this Going out either way because uh Let's just say watching how Congress has Behaved here recently I just don't see a Scenario where this is going to end Quickly or amicably I I don't know I'll Just finish by saying this I think There's potential for Um uncertainty and this to play out in a Wrong way but I like to be optimistic And hope that you know that they do Resolving that we all move on and uh we Bump up again next time and you know we Just realize okay this is a game of Chicken that will always be played so What are your thoughts what do you think Is going to happen I'd be curious to Hear feel free to post that below and as Always stay safe out there
