In an article from the Telegraph (England) entitle, Flee to Mars if America commits worst error since 1931, Ambrose Evans-Pritchard writes about the U.S. fiscal mess and Congress’ dysfunction.
A couple pertinent paragraphs:
Yes, there is such a concept as an “expansionary fiscal contraction”,
as in Ireland (1980s), Denmark (1990s), arguably Canada (1990s), and
the UK after both 1932 and 1993, but in every successful case this was
accompanied by monetary loosening. That card has already been played
Should America instead opt to evade these fiscal cuts by actually
defaulting on debts accumulated by self-indulgent baby boomers, I would
also like to flee Mars because such an outcome might be even worse.
Those who choose to breach America’s sacred bond to creditors across
the world in this squalid way, in circumstances short of war or
extenuating distress, deserve our contempt. Be they accursed forever if
they stoop so low.
Politically speaking in an observatory way, this is fascinating to watch. This is not reality TV, however, where we can edit out way out of the unpleasantness. We are forced to live with and in the dysfunction. It makes the whole situation a little more dire.