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Originally Posted by Delthefunky
Was hoping some people could shed some light on this, as the U.S. approaches their debt ceiling. What are the implications this time around, compared to 1995? How much of this is just posturing by the Rep's, and what are the consequences of an on-going debate, or if the U.S. fails to come to any agreement?
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Ultimately, its about negotiating and reaching a point of maximum pressure which is where the August date comes into play.
There is clearly one side that subscribes to the notion "Deficits don't matter" and the other side that believes its either important or a good way to distinguish themselves from the side that is becoming increasingly unpopular.
The American people seem to believe in polling that "Deficits Do Matter," although, like people everywhere, including Greece, as long as reductions don't affect them.
This article in a calmer moment in 2004 is probably still relevant in giving some explanation as to why some people feel government deficits don't matter:
http://money.cnn.com/2004/02/02/news...dget/index.htm
Jean Chretien in the early 1990's also had a Finance Minister who also publicly thought "deficits don't matter."
These days . . . . . . deficits probably do matter.
Cowperson