Debt Limit
You know, a year ago, we were all laughing an California and the complete stupidity of the political gridlock going on there. It seems that particular infection has spread to the federal government, with there being a significant chance of a completely avoidable fiscal catastrophe ahead of us. ISTM that the Tea Party has, at some political level, rendered itself irrelevant since many of 'em won't vote to raise the debt ceiling under any circumstances. If there's nothing that will get you to vote for it, why should anybody pay attention to you. I'd guess that some version of the "grand bargain" plan could pass the house with centerist votes from both parties. But the Republican leasership doesn't WANT that outcome, because a bill that can muster a large number of votes from both parties is likely to be more left leaning than a party-line vote. So they don't even want to put somethng like that up for a vote.
Are we truely turning into a giant Greece, unable to pay our debts? In Greece the problem is massive tax fraud, and here it is a politicaly unwillingness to pass taxes, but the result is the same. And the consequences might be the same. When people are thinking of lending you money, the fact that you CAN pay them back isn't all that important if they're worried that you WON'T pay them back. Which means that they charge you more interest. And THAT can quickly lead to the situation where you indeed CAN'T pay back the money that you owe.
Are we truely turning into a giant Greece, unable to pay our debts? In Greece the problem is massive tax fraud, and here it is a politicaly unwillingness to pass taxes, but the result is the same. And the consequences might be the same. When people are thinking of lending you money, the fact that you CAN pay them back isn't all that important if they're worried that you WON'T pay them back. Which means that they charge you more interest. And THAT can quickly lead to the situation where you indeed CAN'T pay back the money that you owe.