U.S. debt limit and the Neo-Middle Ages

The U.S. debt have crossed the $14.3-trillion legal limit on the amount of money Washington can legally borrow. On July, 12 President Obama said in an interview to CBS News "I Cannot Guarantee Social Security Checks Go Out On August 3rd" to put pressure on the Republicans and challenged Congress to share what he called his willingness to compromise in solving the debt problem by allowing the raise of this debt limit and a bail-out plan.
It won't be a surprise, the Republicans will accept to increase the U.S. debt ceiling to balance the budget because otherwise the first economy of the world will become insolvent creating a chain reaction that will smash the financial markets and probably return the world to a Neo-Middle Age.
So Washington will borrow again money from Federal Bank (Fed). And "when the government borrows money from the Fed, it almost always has to be paid back with accrued interest. In other words, almost every single dollar that exists must be eventually returned to a bank (in this case the Fed), with interest paid as well. But, if all money is borrowed from the central bank and is expanded by the commercial banks through loans,is being created in the money supply…. So then, where is the money to cover all of the interest that is charged?
Nowhere. It doesn’t exist. for the amount of money owed back to the banks will always exceed the amount of money that is available in circulation. This is why Inflation is a constant in the economy, for new money is always needed to help cover the perpetual deficit built into the system, caused by the need to pay the interest." [1]

My point is: Enjoy your life as much as you can, before the system collapse :)


[1] Zeitgeist the movie, 2007