Debt Ceiling Shouldn’t Cause Market Failure

If congress does not raise the debt ceiling there will be winners and losers in the stock market, but since low interest rates can be helpful to a short sited consumer spending driven economy there will be more losers than winners. While interest may raise, the United States may not pay off its debt obligations so it would not really be prudent to sell shares of profitable companies with low debt in exchange for notes that may or may not be paid off. The value of the dollar is bound to drop if the debt ceiling is not raised, however it is uncertain whether or not there will be deflation if the ceiling is not raised. There may be inflation either way. The only certain thing that has been happening throughout the debate is that people have been buying up gold and silver in mass quantity. The price of gold has risen to over $1,600 per ounce while silver has risen to over $40 per ounce. Oil is also on the rise, after Europe bailed out Greece and demand in the U.S. remains high. If the raise in debt ceiling results in a plan to raise taxes, the market will most likely react negatively. Regardless, in the age of reckless spending and lack of thought on the debt issue, I’m sure a plan will be devised in the last minute which will make sacrifices on both ends – an increase in taxes plus a reduction in spending. However, if the reduction in spending does not exceed the amount of ceiling increase the debt problem will only get worse. Raising the imaginary “ceiling” is an imaginary move that will have a placebo like effect. Long terms changes must be enacted before default is necessary or inflation skyrockets through the roof (which if you use the price of gold to gauge inflation it already has). Pay close attention to what comprises consumer price index, as the basket used to determine this has been changing over the years to help make it look like inflation is lower than it actually is.

The United States National Anthem – Lyrics and Full Song

Not many people know all the versus to our national anthem. The entire song is rarely sung, and I’ve never heard it sung at any sports event. Enjoy

Oh, say, can you see, by the dawn’s early light,
What so proudly we hail’d at the twilight’s last gleaming?
Whose broad stripes and bright stars, thro’ the perilous fight,
O’er the ramparts we watch’d, were so gallantly streaming?
And the rockets’ red glare, the bombs bursting in air,
Gave proof thro’ the night that our flag was still there.
O say, does that star-spangled banner yet wave
O’er the land of the free and the home of the brave?

On the shore dimly seen thro’ the mists of the deep,
Where the foe’s haughty host in dread silence reposes,
What is that which the breeze, o’er the towering steep,
As it fitfully blows, half conceals, half discloses?
Now it catches the gleam of the morning’s first beam,
In full glory reflected, now shines on the stream:
‘Tis the star-spangled banner: O, long may it wave
O’er the land of the free and the home of the brave!

And where is that band who so vauntingly swore
That the havoc of war and the battle’s confusion
A home and a country should leave us no more?
Their blood has wash’d out their foul footsteps’ pollution.
No refuge could save the hireling and slave
From the terror of flight or the gloom of the grave:
And the star-spangled banner in triumph doth wave
O’er the land of the free and the home of the brave.

O, thus be it ever when freemen shall stand,
Between their lov’d homes and the war’s desolation;
Blest with vict’ry and peace, may the heav’n-rescued land
Praise the Pow’r that hath made and preserv’d us a nation!
Then conquer we must, when our cause is just,
And this be our motto: “In God is our trust”
And the star-spangled banner in triumph shall wave
O’er the land of the free and the home of the brave!

Happy Fourth of July

Two hundred thirty-five years ago the Declaration of Independence was adapted, making the United States independent from Great Britain. Below are a couple of patriotic songs for the occasion.