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View Diary: The debt ceiling dance and the trillion dollar coin (218 comments)

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  •  Not at all (0+ / 0-)

    I answered that in the second paragraph.  Investors borrow over 10 year periods or even 30 year periods, so a solution that results in neither tax increases nor spending cuts and shows the political system to completely not work would, I'm guessing, lead investors to be a bit more skeptical of the united states.  (a clean bill would do nothing on the appropriations side, but would still reflect an understanding that our congress isn't insane).

    I did assume the treasury would borrow the two trillion all at once, which is probably not the case.  

    "This world demands the qualities of youth: not a time of life but a state of mind[.]" -- Robert F. Kennedy

    by Loge on Sun Jul 31, 2011 at 10:38:52 AM PDT

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    •  Go look up "flight to quality" (1+ / 0-)
      Recommended by:
      psyched

      Investors will stick with the U.S. instruments because, as a friend of mine used to say, this country is where the last capitalist will die.  At most, you're worried about some general inflation.  That's not deadly.  Recession/depression is deadly.

      We are being moved towards serfdom.  I can't believe that a Democrat is steering.

      In my avatar, the blue bars show how many want Reps who COMPROMISE; the aqua bars show who wants Reps who STAND FAST no matter what. (Left=Overall; Center=Democrats; Right=Republicans.) And there's the problem!

      by Seneca Doane on Sun Jul 31, 2011 at 11:00:04 AM PDT

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