On the Debt Ceiling and Triple A Ratings

So the Congress and the Senate of the U.S. have passed laws which ensure that the U.S. will continue to honor its financial obligations (aka debts) to its own people and to other nations. I am not inspired to scream Hurray! It is sad that we needed a Congressional okay to legalize this promise. Op-ed pieces, talking heads, President Obama, other political leaders and commentators and opinionators, knowledgeable, semi-informed, as well as illiterates, have shared their views on the matter with the world at large. So I dare to do so also.

I am very happy (for the integrity of the U.S.) that its promissory notes will not lose their credibility in the estimation of the world. I am sort of happy that the Republicans were unbending in forcing the government to cut down its spiraling spending because this limitless spending, like the population explosion,  simply cannot go on for ever. I am also furious the Republicans have adamantly refused to okay a more equitable tax system which will demand that millionaires, multi-millionaires, and billionaires  pay a larger tax share to replenish the dwindling coffers of the state. I don’t know on what economic theory this gross injustice in sharing the nation’s burden rests, but it is downright immoral and wrought with potential for major discontentment among the populace which can have serious consequences.

In the meanwhile Mr. Putin, somewhere in his electioneering speech in Russia, is reported to have stated that the U.S. is a parasite, consuming more than its share of the world’s resources. As far as the consumption goes, he is damn right. But strangely, the U.S. in not a parasite in its overindulgence. Quite the contrary: Its over-consumption of imported goods, including Russian caviar and vodka, feeds millions of mouths overseas. Let Americans stop over-buying and over-consuming goods from the rest of the world, and countless factory workers, craftspeople, grapes-growers and more will be thrown out of work at short notice.

This is a crazy and dangerous global economy the nations of the world have  gotten into. I am inclined to think, perhaps naively, that like other catastrophic eruptions that are wreaking havoc in the world, both natural and human instigated, with all its apparent benefits, economic globalization is a tsunami that is likely to create as much damage to many economies as the recent seismic disaster did in Japan and to the nuclear reactor industry.

August 3, 2011

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