Thursday, June 2, 2011

Taking an Axe to America's Assets

The Consequences of Tea Party Drivers behind the Economic Wheel
As much as Tea Partiers / GOP like to bandy about the power of the Invisible Hand, it's remarkable to me how little they understand how modern economies function.  One of the most important elements of American Exceptionalism is the power of our nation to create wealth through the sheer force of the size of our economy.  Because of that, our debt is considered a safe harbor investment.  Now the pig fuckers in the Tea Party / GOP want to trash the massive power of our debt as an instrument of global economic power.
But the decline in Treasury yields indicates the nature of the fire with which legislators are playing. If Congress called into question the safety of the one safe asset for which markets have an almost unlimited appetite, all hell would break loose.
Can you imagine the chaos if Treasuries were no longer good?  Can you imagine the consequences not just to the American economy, but to the global economy as a whole?  I believe the President would have to step in and simply declare a rise in the debt ceiling.

The childish gamesmanship the Tea Party / GOP have introduced into this sombre process reflect the dire ignorance of their members.  Like teenagers behind the wheel of their parent's car, they're drunk with the power and freedom of the experience.  Unfortunately for the rest of us, we're trapped in the back seat.

Hang on, everyone...

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