Raising the debt ceiling means printing more money (electronically). After the debt ceiling is raised the Department of Treasury will print up some new government notes, bonds and bills and sell them to the Federal Reserve. The Federal Reserve will then create some new money and give it to the US Treasury. All this does is dilute the existing currency and weaken the value of the dollar. Businessmen pay close attention to the actions of the government in regard to creating new money. The second the debt ceiling is raised, they raise prices to compensate for the diluted currency. Raising the debt ceiling will accomplish nothing in the long term except put government deeper into a debt they can not pay back.
Something that is accomplished very well by raising the debt ceiling is that the privately owned Federal Reserve Bank would profit more from the additional interest that is owed to by the the Federal Government. Every time the Federal Reserve lends money to the US Treasury it has to be paid back with interest. That additional interest does not exist yet in the entire monetary system. It forces the US Treasury to come back in the future and borrow more money in order to pay the debt back.
Here is an illustration to explain how the Federal Reserve works.
1-In 1913 the privately owned Federal Reserve Bank issues the first Federal Reserve Notes to the US Treasury for $1,000 (amount is figurative).
2-The US Treasury now owes the Fed Res Interest + Principal. So the US Treasury is now indebted for $1,200.
3-The US Treasury owes $1,200 but only $1,000 exists. The additional $200 has not been created yet.
4-The US Treasury now has no choice they must go back to the Fed Res and borrow $200. The Fed Res creates the new money and backs it up with additional debt.
5-The US Treasury now owes $1,400. Same problem. Only $1,200 exists. More money most be borrowed.
Today- The US Treasury owes 14.5 Trillion. That amount of money does not exist. The US Treasury needs to borrow more to pay back that interest. Which will only increase the total debt owed next year. What we have here is a dog trying to catch its own tail and running in circles.
Please read the following article for more details on now Factional Banking works:
I have heard some interesting remarks from politicians and political-economists that the people of this country do no understand what is at stake if the debt ceiling is not raised. They don’t give the American people enough credit. We understand very well that we are mixed up in a Federal Reserve Ponzi scheme. The national debt is a bottomless pit that is mathematically impossible to ever pay back. At no time is there enough money in existence to pay back the national debt entirely.
Very few people actually grasp what the number Trillion means. Here is something that we can relate to:
Million Seconds ~ 11 Days
Billion Seconds ~ 31 Years
Trillion Seconds ~ 31,000 YEARS !!!
(Note: Permission to reprint and link with credit to Bill Tsafa is hereby granted)