Does the US have a marginally functional government?
We already know they don’t have a fully functional government, or a reasonably functional government. But we are waiting to see if the government really exists at all, and is able to muster itself together enough to avoid accidentally defaulting on debt and starting a new financial crisis.
Whether we think they need to cut spending or not it doesn’t matter – we are talking about the next week where they will exceed their debt ceiling no matter what. So lets hope they extend it.
And even when they do, after how absolutely useless they have been can they really avoid being downgraded? If they don’t get downgraded the credit rating agencies will be seen as to be just as hopeless as they were following the global financial crisis …
Update: So the President, house leader, and senate leader all agree on a deal. But it still needs to get through the senate, and the house, tomorrow. Man, how last minute is this!
1 comment
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Alex
August 1, 2011 at 4:26 pm (UTC 12)
It seems that everything in the government happens last minute. Just look at the possible government lockdown that almost happened a few months ago. It makes sense though. Scaring the citizens into a possible catastrophe and creating the illusion that if a certain bill is not passed the economy is going to come down on itself like a blackhole. Very well done on their part.
TVHE » What to watch for during the sovereign debt crisis
August 9, 2011 at 7:01 am (UTC 12)
[...] we want to think about the S&P downgrade, lets remember that it was the ridiculous negotiations regarding the debt ceiling that lead to this downgrade – with elected officials genuinely suggesting [...]
» Question for last week and the future - Umamiblog, by John Lewis
August 9, 2011 at 8:30 am (UTC 12)
[...] Matt, at TVHE: Does the US have a marginally functional government? [...]