Quote:
Originally Posted by Tinordi
To be clear I'm not saying that this is a non-issue. I was arguing to a poster's claim that this was happening because of impending financial collapse. It's not. It's happening because of an arbitrary political limit subject to, it appears only the U.S. of the wealth nations.
To belabour the point, the U.S. isn't being dragged here like how the EU is because of market limitations. It's a domestic political limitation. Big difference. And a likely also a big difference in the fallout in the event of a default. Although a default under any situation is very bad.
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Oh I wasn't piling on your comment. I wholeheartedly agree that this is different to the PIGS situation in that the US isn't seeing yields blow out and there is still endless demand for their bonds at those yields.
That's probably why we're headed for a half measure compromise that doesn't come up with $4 Trillion spending cuts/revenue increases.
And the partisans in this thread can seriously give their head a shake. Democrat sympathizers should realize that their plan doesn't cut at the heart of government spending and is actually just predicated on less military involvement abroad. Cuts should be more broad based to inflict the efficiencies that are necessary. Republicans need to give their heads a shake too because it's not like necessary tax increases are going to mark the end of the world as we know it. Compromise on a $4 Trillion budget revision that includes small tax increases and heavy cuts, and increase the debt ceiling so the treasury has enough to get past the next election cycle.
No Downgrade
No Default
No artificial recession