It sure is exciting watching the political drama unfold in DC. It would be a lot more enjoyable if it weren’t such a pathetic display of ignorance and incompetence, and more entertaining if it weren’t being played for real money, jobs, and moral standing. When I was a kid, I could always get to sleep in bad times, or endure scary situations, by reflecting that the grownups were in charge and wouldn’t let things get really dangerous. Right.
Most of the discussion I’ve read and heard has the world economy turning on whether in the end, the Treasury defaults on some obligations because the debt ceiling hasn’t been raised. I think that’s too simple: as I write this, the US markets have decided they were right yesterday and continued sinking (though the 10y t-bill is sitting still at around 3%). However this comes out on the specific question of the debt limit, it’s been demonstrated for all to see – all – that those in charge are not grownups, and that the national institutions of governance (including the press, paper and other) in the US are broken beyond anything I can think of since 1860. The investment/business community may be waking up to the real nature of the beast they unleashed that was just supposed to make them a little richer and then behave itself bringing coffee and votes when asked, and the dragon’s teeth it strewed through the Congress last fall.
It’s not impossible that this gets worse before it gets better; Boehner and his orcs may get their wish to unseat Obama, and they may get it with a certifiable piece of fruitcake in the White House, employment plumbing new lows, and really scary types thinking maybe Angle was right about second amendment remedies and its their time to apply some. I do not now see how the Republicans put their lunatics back in cages after this little drama’s curtain comes down, no matter what it’s last scene is.