It’s almost uncanny how this all works. The violence and debauchery of the misguided and self-indulgent Occupy movement has peaked just in time to draw all of the media attention away from the biggest problem both the 99% and the 1% face in the immediate future. Headlines of OWS miscreants terrorizing school children and throwing acid at police officers managed to push the headlines of the shameful and dangerous debt milestone – U.S. DEBT PASSES $15 TRILLION – to the inside pages. Just another example of a complicit media assisting our politicians in distracting the American people from the real issues that actually affect them, namely, the US Debt Crisis.

Buried even deeper was the report that Congress had to pass another continuing resolution to keep the government running, because it has yet to pass a budget after nearly three years. As a result, the current spending level has the country set on a trajectory of more than $46 trillion spent in the next decade. But you wouldn’t hear that from the media because the US debt crisis is not on their to do list.

What else is the media – the “fourth estate” entrusted by the Founding Fathers to be the final check on government – not telling us? In addition to sweeping the calamitous fiscal condition of our country under the rug, they’ve managed to keep some extremely serious developments out of the front pages besides the US debt crisis. For instance:

  • They won’t tell you that the Federal Reserve Bank just became the largest holder of U.S. Treasuries, surpassing China. Why might that be important to you? For one thing, it confirms that U.S. debt has become so toxic that no one else will buy it – not the Chinese, not the rest of the world, and not even the American public. In the last two Treasury auctions, the Federal Reserve had to purchase more than 75 percent of the Treasuries because no one else wanted them.
  • Why is that bad for us? Because, essentially, the Fed is exercising nothing more than a Ponzie scheme. To buy the billions in Treasury notes, which the government needs to finance its out-of-control spending, it simply prints money, at no cost to it. Then, it buys the bonds, which then pays the Fed interest. That’s a nice deal if you can get it. Meanwhile, the money printed out of thin air drives the value of the dollar down forcing prices of commodities up. Hence, we have rising, sometimes spiking, oil prices and food prices. But, the media won’t tell you that.
  • What they aren’t telling us is that the U.S. has no option but to default on its debt. However, it won’t be done overtly. The only option it has is to inflate its way out of debt by debasing the US dollar (USD) as it is doing right now. By doing so, it will eventually need to raise interest rates, which will increase the cost of debt so the Fed will be forced to print more money. But they won’t tell us that.
  • Neither the government nor the media will tell you that, when the world finally loses its tolerance for the Fed’s dollar debasement strategy which, essentially, exports our inflation to other countries, it will turn to other forms of currency reserves, such as gold, or, perhaps the Chinese Yuan. When that happens, the Fed won’t be able to print more money because no one will want it, which will result in massive inflation. When the USD collapses, your standard of living will crash and the American economy as we know it will cease to exist.

The bottom line is that there is no way that the U.S. will ever be able to pay its debt and entitlement obligations, which total $100 trillion. The country will never be able to generate the output, the government will never be able to collect enough tax revenues, and despite its actions to the contrary, the Federal Reserve cannot print enough money. The Federal Reserve is out of options, and it may be out of time, but it would never tell us that, nor would the media.

I’m not one for gratuitous hyperbole. This scenario could easily be construed as fodder for some late night infomercial selling gold bullion. But, there’s nothing here that you couldn’t find out on your own by studying government data and your history. The problem is that we have come to rely on the media to keep us informed of things that really matter to us. Instead, it seems intent on keeping us in the dark so as to not generate the panic and collapse of confidence that the government and the politicians fear most.

The Founding Fathers believed that the greatest danger to democracy is a uniformed (or misinformed) public that is unable to perform the critical function of the final “check” on government, corporate and media corruption. History has shown us that the seeds of soft tyranny are sown when the foundation of knowledge and accountability that thwarts it crumbles. But the public must share some culpability because it has the responsibility for exercising its checking power with its vote and its pocketbook. When corrupt politicians are elected to power, and the criminal actions of corporations go unpunished by consumers, then we sow our own seeds of destruction, thus, the US debt crisis.