Quote:
Originally Posted by Slava
Heres the part that I can't figure out though. If the teapartiers get their way and the markets react "unfavourably" (which is basically a foregone conclusion in my estimation) then how do you go back and explain that to the people?
If they essentially make a decision that rather than prudent cuts along with increasing the debt ceiling to get through things for a while, that the US should head back to recession and potentially a longer and more painful one then they really are dumber than I would give them credit for. How that position is tenable for even half of an election campaign is just so far beyond my grasp I suppose...simply bizarre.
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Its not just that, if they go ahead and default the US interest rate will almost certainly go up precipitasly as a consequence, this is the same as a tax increase for virtually all americans, except the money goes to the banks and not to service the debt.