Failure to raise the debt limit could send "a terrible signal" - that "we’re a banana republic"

[nebris]

by Gaius Publius on 5/15/2011 04:51:00 PM



Paul Krugman considers various aspects of the decision not to raise the federal debt ceiling here.

He talks about various temporary work-arounds and also the obvious: that Treasury bills "are the universal safe asset, the ultimate collateral". Monkeying with that would therefore have

Comments

[kayjayuu]

Well. If the shoe fits.

[badnewswade]

Obama will cave. Partly because he's weak, partly because as a member of the ruling class he doesn't personally have to worry about the consequences of crazed budget cuts or a new recession. He just has to worry about staying in power - you have to worry about staying healthy, housed and employed.