It's The Debt Stupid!

In August 2011 I wrote the following about the shenanigans over the US debt ceiling:

"The bill allowing the President to raise the US debt ceiling has finally been passed by both houses.

Crisis over?

No, the markets have reacted badly to the fall in US manufacturing and have been less than impressed with the political antics on Capitol Hill.

Whilst the politicians who brought about this crisis may feel smug and self satisfied, they should bear in mind that US creditor nations such as Russia and China will never trust them again to deal with economic issues such as this in a sensible and rational manner.

As such the long term prospects for the US economy, and Dollar as a reserve currency, are bleak; thanks to the selfish indulgences of the politicians on Capitol Hill.

Breaking News

China rating agency Dagong downgrades U.S. to A+ from A

And so it begins!

The politicians were warned!"

Well here we are in 2012 and the whole sorry business is about to rear its ugly head once more, as President Obama is seeking to raise the debt ceiling by a further $1.2 trillion to $16.394 trillion.

For why?

"To meet existing commitments."

Congress has 15 days to vote on a resolution of disapproval under terms of budget control legislation passed last year.

"Experts" predict that the shenanigans of last summer won't be repeated, because Congress won't be able to muster enough votes to block it.

We shall see.

Politicians are, after all, entirely self serving selfish individuals; they would never let an opportunity for political grandstanding and political brinkmanship be blocked by economic considerations or the financial welfare of their electorate.