Tuesday, September 17, 2013
Debt ceiling problem approaches; could dollar as "reserve currency" be at risk?
A website called “Fix the Debt” has a technical update on the federal debt this morning here The Washington Post is reporting that the Obama administration is again warning Congress that it could run out of money to pay bills “already ratcheted up” by Oct. 18.
It’s also shocking that polls of Americans show that they don’t think that the debt ceiling should be extended. Is it time for sacrifice? (More than sequester?)
Social Security may be “safe” because the Social Security Trust Fund is a bond holder, and can get first in line to get paid anyway (or litigate in federal court if necessary, maybe with the help of the AARP).
What’s not safe is whether the rest of the world will continue honoring the dollar as a “reserve currency” if there is a technical default. Porter Stansberry, and others, have warned of immediate financial panic and have already urged wealthier Americans to remove assets to overseas.
And national security is not safe. A fiasco in meeting current obligations would make a terrorist attacj at home only more likely.
This is nothing for the ideologues in the GOP to play with. Do they want lawlessness, for all of us to be holed up like doomsday preppers protecting our “families” with assault weapons, like in the Mad Max movies? Do they want the end of civilization?