Mirror in a tattoo shop, San Antonio, Texas (October 2009)
IF you buy a home, a new car & max out your credit card on clothes & food, at some point, you have to pay your bills. How you pay those bills directly impacts your credit rating. It's not complicated.
Debt is debt. As a person, you have several choices. You can attempt get a second job to meet your financial obligations (i.e. raise revenue), cut back on spending (i.e. reduce the size of the government), do a mix of the two methods or just give up & file for bankruptcy (DEFAULT). Your individual credit rating depends on HOW you, as an individual, respond to paying off your bills. Ignoring phone calls from the bank & the credit card companies WILL NOT solve the long term DEBT problem.
When a Presidential candidate (i.e. Michele Bachmann) gets on Face the Nation & tells the reporter that the Treasury Department can just move around money to avoid a crisis, well, that way of thinking is just plain wrong (as well as stupid).
It's NOT 1773, 1776 or 1789.
It's 2011 and ALL of us live in a Global economy. The sooner folks recognize that reality, the sooner this country will start doing what it needs to do to COMPETE in a GLOBAL MARKETPLACE. And oh by the way, the whole Boston Tea Party thing was NOT about paying taxes. It was about "TAXATION Without Representation". Walking away from the table (on EVERY ISSUE) is NOT Representation.
All financial markets (Bond, Stock, Currency & Commodity) are built on the foundation of "confidence". Don't fool yourself. The GOP's goal is the WHITE HOUSE & NOT fixing the budget mess or the overall economy. Guys like Karl Rove & the Koch Brothers know egg-xactly what they're doing.
Once a factory closes, it's closed. Those jobs may or may not ever return. What folks don't understand is that once a manufacturing job leaves our shores, it's only a matter of time before a corporation starts to trim its white collar staff (i.e. folks who were originally hired to support a larger blue collar workforce). This delayed process of corporate contraction causes a negative, slow moving, ripple effect on the entire economy. Simply put, like it or not, in the short term, there is NO quick fix (or voodoo magic) for turning around this economy.
Anyhow, driving the global economy off a cliff to pander to the narrow whims of the Liberatarian Wing of the Republican Party is just plain NUTS! Unless of course, that's the REAL economic & political END GAME. IF that's the case, then maybe it's indeed a good time for all of us to start praying.
The Wealth of Nations (Paperback)