It’s not enough to simply impede raising the debt limit; if critically minded free-market politicians in Washington really want to affect change, they will do everything in their power to make certain the United States Government defaults on its debt.
It’s true, there is no shortage of people who will claim the sky is falling. They will point fingers, scream, kick, bite, drool, snivel, and whine as they lose precious programs and funds to which they claim they are “entitled.” But they are not entitled.
The Austrian/libertarian objective is not to negotiate with leftists; it is to disassemble centralized authority. True Jeffersonian liberals have an opportunity to begin the process of systematically dismantling the behemoth federal government that has led us into our current economic malaise. Now is not the time for any sort of compromise — whatsoever. The debt ceiling should remain fixed (or even reduced), and any politician proclaiming his or her distaste for the bureaucratic monstrosity in Washington has a bona fide obligation to ensure that the federal government defaults on its debt.
A government that has no cash loses its ability to do harm.
Disclosures: Paco is long gold and oil, and short Treasuries — all through leveraged ETFs.
You can buy Paco's novel Discipline wherever books are sold.