Tuesday, July 26, 2011

I *heart* debt

Not really. Curiously, while all the news networks talk nonstop about the GOP and Dems both battling out some resolution to the debt crisis on Capital Hill, we really don't feel it at the everyday Joe the plumber level most of us live in. Yes, gas prices have gone up and food prices and such but those are market factors at work, when was the last time you actually said "Oh damn, the national debt prevented me from buying XYZ" Really, the US has held a debt for the better part of time since the 1940s if not earlier. Only recently did the debt really jump to the levels we're panicking about today.

Since neither side of the political spectrum seems to want to budge (I think they're suffering from a severe case of Kindergarten "I don't wanna"itis) it could be a possibility that the US might default on her loans. Why can't this happen? Well, for better or for worse, the US' position as the main superpower of the world politically and economically (at the time being, China is creeping up fast) means defaulting would show weakness, and in the massive global game of chess, the US's position of King of the West needs to be guarded. There is a reason why whenever some crisis occurs in Africa or Asia, it's the United States who is called upon to provide aid. We have the money, the resources and the man power to do so, it's the basis for how she can get other nations to do what she wants. If the US defaults, her hegemony is essentially halved or even more (less?). The message sent out to the world isn't one of power, omnipotence and omniscience regarding international affairs, but as the fallen giant who epitomizes the reason we had our last recession, spending money we didn't have. So, while today we might not directly feel the impact of the debt, in the next few years we probably will, and not in the "I can't buy this" sense, but in the "Who gives a shit about the country who can't pay its own debts?" sense the next time we try to do something big in the international arena.



Politicians needs to stop bickering and get off their sorry asses and get shit done. They've forgotten the reason they're in their elected position in the first place, to serve the nation and put the interests of the public in the forefront. Instead, they've gotten stuck trying to put down the opposing party and blowing hot air. My generation is already economically screwed over thanks to these goons who think raising the debt ceiling will change anything. Ignoring the problem or sweeping it under the rug won't do anything, in five years, we'll be right back where we started only to find the problem has grown even bigger.

So Republicans and Democrats: Stop acting like little children and get your shit together.

1 comment:

  1. We had the deficit crisis here in Canada about 12yrs ago with the Reform party in particular sounding the alarm. The difference here is that the Liberal party in power had the majority in parliament to do something about it. They had the budget balanced in 5yrs and and surpluses after except for the last year cos of the global financial crisis.
    -The bottom line is that if a country doesn't get it's act together financially then the financial markets will do it for them with bad credit ratings and high interest. Like a family that spends more than it earns it takes painful cuts to things you love to get rid of debt.
    -Two things paralyze the USA when it comes to effective action. First the notion of having congressional elections every 2yrs; an opposing majority insures that nothing gets done. Second, the 60% majority requirement to pass anything in the Senate; the partisan minority will squash reform. Sometimes a little dictatorial power means that the bad medicine required to get things straightened out is administered before things really get out of control. - Wayne

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