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View Diary: Greece Can Happen Here: Hitting our Heads on the Debt Ceiling (12 comments)

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  •  I cannot really agree (0+ / 0-)

    with the "sky is falling" argument. We are hearing it in one form from the right and now another from the left. I would start by making the observation that the USD is the world's reserve currency and that is unlikely to change for a while. Everyone from drug lords to oil traders uses USD as the medium of exchange. The amount of USD value just in oil contracts is staggering. I interpret this debt ceiling talk on the right as so much posture that is derived from the fact that they are facing the expiration of the Bush tax cuts and they are trying any way they can to stop that from happening because their ideological goal is to kill social welfare. In that context, I have to wonder whether alarm on the left is not just aiding the rightwing talk and making the debt ceiling a bigger deal than it is in fact.

    •  Actually, that's NOT what they're saying (0+ / 0-)

      They're saying that it WON'T be a big deal.  Michelle Bachman's statement from yesterday is an example of that.

      I'm not sure what will happen myself;  pushing up against the debt ceiling is a stupid tactic that's never been tried this seriously before.  No one knows what will happen, beyond the following:

      1. It definitely will disrupt certain kinds of payments from the US Treasury.
      2. It will create cash flow problems for some government contractors, and some of these businesses will close permanently as a result.
      3.  Some kinds of payments will not go to people in marginal economic situations, and a variety of problems will happen to these people.

      How markets will process this I have no idea.  I don't think it reflects well on how the US is governed, but we just don't know.

      I wouldn't necessarily say the sky is falling.  But I wouldn't make light of it, either.

      You can't govern if you can't tell the country where you are taking it. The plot of Obama's presidency has been harder to follow than "Inception." -- F. Rich

      by mbayrob on Tue Jun 28, 2011 at 04:57:04 PM PDT

      [ Parent ]

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