American public wants us to default on national debt, sending world economy into chaos for decades

Huff Post Hill, writing about this Reuters story:

We try so hard to give the American People the benefit of the doubt, but they keep making it harder: Two in three Americans now favor defaulting on the U.S. debt and sending the global economy into a tailspin, throwing millions out of work. Reuters: “The U.S. public overwhelmingly opposes raising the country’s debt limit even though failure to do so could hurt America’s international standing and push up borrowing costs, according to a Reuters/Ipsos poll released on Wednesday. Some 71 percent of those surveyed oppose increasing the borrowing authority, the focus of a brewing political battle over federal spending. Only 18 percent support an increase… Treasury Secretary Timothy Geithner last week warned that a failure to raise the borrowing limit in the coming months could lead to ‘catastrophic economic consequences.'” Survey respondents had much less appetite, though, for cutting spending. Their budgets suggestions? “Some 73 percent support scaling back foreign aid and 65 percent support cutting back on tax collection — two very small lines in the massive federal budget ledger.” Yes, cutting back on tax collections will do wonders for the deficit.

Don’t believe them? Listen to GOP Senator Lindsey Graham (and Reuters):

“Let me tell you what’s involved if we don’t lift the debt ceiling: financial collapse and calamity throughout the world. That’s not lost upon me.”

A default by the U.S. government would, in effect, cause a long lasting tax on all Americans and the loss of millions of jobs — and the economic catastrophe would last for decades. Not even to mention that the longtime standing of the U.S. dollar and Treasury bond as the world’s financial standard bearers would be given up for good, interest rates would spike, and investors within the U.S. and around the world would likely be spooked.

Welcome to an America in which the Republicans demagogue and the Democrats refuse to respond appropriately. The public ends up believing voodoo economics that would quite literally destroy our economy.

We’re number one.

CyberDisobedience on Substack | @aravosis | Facebook | Instagram | LinkedIn. John Aravosis is the Executive Editor of AMERICAblog, which he founded in 2004. He has a joint law degree (JD) and masters in Foreign Service from Georgetown; and has worked in the US Senate, World Bank, Children's Defense Fund, the United Nations Development Programme, and as a stringer for the Economist. He is a frequent TV pundit, having appeared on the O'Reilly Factor, Hardball, World News Tonight, Nightline, AM Joy & Reliable Sources, among others. John lives in Washington, DC. .

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