“Are they coming for us, with cameras or guns? We don’t know which, but we gotta run. And you say ‘this is not what I bargained for'” – Indigo Girls, Fugitive
Just a quick note today.
As I’m sure you’ve heard, there is some fiery rhetoric flying around regarding the debt-ceiling. Most notably, the sky is falling, the end is near, and if we don’t increase the borrowing limit then the economy is doomed. I heard one commentator say today that failure to pass the borrowing increase send reverberations through the economy and likely plummet us into another recession. This isn’t the most dramatic, of course, some out there are using depression instead.
Let me make sure I understand. If Congress can borrow more money to pass out to whomever they please, the the economy will crumble? Somehow the ability of Congress to borrow money (to be paid back by future generations) and spend it now is the only thing that is keeping the economy back from the brink?
Either this is absurd, or the economy is going on the tank no matter what happens.
(At this point someone will say “but interest rates will rise if we default” – but we will pull in more than enough money to pay the interest on the debt. There is absolutely no reason to default, unless that’s what Geithner wants.)
When folks start warning you of dramatically dire consequences if you don’t give them everything in the world they want, it really is time to call their bluff.
Chris Christie certainly doesn’t think much of the president’s leadership – see his comments in the video here. (Also, take a look at the construction workers fidgeting behind him … these guys really don’t look like they want to be there. It’s kind of funny.)