October 15, 2013 (San Diego) Well it seems we will default. This is going to be blamed by historians on the kind of dysfunction not seen in living memory. What is significant, is not just food banks in the US preparing for the money crunch. Or for that matter state pension plans expecting a crash. Here, reported by the NYT is the international reaction.
Investors on Monday reacted in tandem with the real-time reports of halting progress, with stocks falling in the morning before drifting into positive territory by the end of the day in response to reports of a possible deal in the Senate. At the same time, asset managers and banks began taking steps to be ready if the Treasury Department is unable to pay back its short-term debt on time. And world leaders expressed concern about the impact on their countries.
In Britain, Jon Cunliffe, who will become deputy governor of the Bank of England next month, told members of Parliament that banks should be developing contingency plans to deal with an American default if one happens.
And Chinese leaders called on a “befuddled world to start considering building a de-Americanized world.” In a commentary on Sunday, the state-run Chinese news agency Xinhua blamed “cyclical stagnation in Washington” for leaving the dollar-based assets of many nations in jeopardy. It said the “international community is highly agonized.”
It might need translation to the American public, what the Chinese official media is saying, speaking for the government. They are speaking in code, as to the end of the American dollar as the reserve currency. This should be near the top of the story, like the fist-to-cuffs the other day in another New York Times story.
So what is the House doing right now? There is an agreement, and they insist on playing games with Obamacare, which they hate so much, they cannot see the fire they are causing.
Historians will have a lot of fun with the last year or so of Congressional history. They will have to untie the gordian knot these people have tied. Whatever it is the personal motivations that lead the Speaker of the House, John Boehner, to put not just his party, a radical section of his party above the interests of the nation will be more than a mystery for the moment.
What is true is that even former Speaker Denny Hastert has come out saying that his rule is no rule and in this case it is an impediment to dealing with the business of the nation. So it is time to get rid of it, Speaker John Boehner, a nation beseeches you.
As Leader Nancy Pelosi said, “In this case, time is money.” She is right on the money, no pun.
So what we are seeing is a group of radical Republicans holding the country hostage, due to their hate of not just a law that was passed, but that the United States Supreme Court found legal.
What is ironic is that the launch has not been stellar, or good, or fairly good, or just fair. But their fixation on repealing it has made everything else but that launch the story. Ironically if the country defaults (it is looking more like when the country defaults), we will not have money for Obamacare and everything they actually accept as a valid government service either. I cannot stop thinking of the fate of the Russian Navy at the fall of the USSR. There was literally no money to maintain it, so it rusted on the docks. Yes, it could indeed be these serious, and an image that these Radical Republicans should see, because that is where they are leading the country in their obstinacy.
The best part is, they do not care.
I guess that will be the epitaph of the United States Empire, “They did not care.”