Friday, April 15, 2011

We must cut off our noses in order to save our faces

Let's see if I understand this correctly: Budget hawks, austerity buffs and the right in America are threatening to block the approval of the legal raising of the US debt limit.  The threat itself is widely understood as a large potential hazard to our borrowing, our creditors, and how the international bond market views investing in the US Treasury.  That is, the threat of not extending the debt limit means the US may default on its present debt obligations with known negative consequences.

Why is this threat being brandished?  Ostensibly to avoid future default of US debt obligations.  And theoretical future negative consequences.


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