When the people find they can vote themselves money, that will herald the end of the Republic. Ben Franklin
+1. And the democrats have mastered this game plan going back 50 years now. The question is it too late to even turn the boat around, or have we become the EU?
Why do people assume that either keynesians of monetarists or austrians are right. They are all wrong.
My point addressed the timing of the eventual default. Not the possibility of it. Bad mouthing the dollar and US credit rating unnecessarily hastens a dollar collapse by undermining market confidence before due course. Sure, the collapse will come. But we're talking economic Armageddon. The US will go into a severe Depression (20%+ gdp contraction). At this rate of spending, the US Government has another 4-5 years before market rumblings. They should use it to prepare the country. Not force the disaster, then cram through all types of emergency legislation in the ensuing panic. But again, that's my point. If Congress continues to invite destruction, then I would conclude that's their intention. Voters are loathe to change during normalcy while calamity is proven expedient for dramatic change. God Knows what types of reforms we'll get in an economic collapse. Look at 911 and '08 crash. At this point, this is the first talk of default from a high-ranking US official. He may be playing games, political brinkmanship, posturing.