World markets have begun to get just a little nervous about what’s now happening with the U.S. government. The story is all over the front and financial pages. The Republican-controlled Congress—hostage to Tea Party ideology—is refusing to authorize a rise in the debt ceiling, a move which would allow the United States government to stay solvent and say to its creditors,
“Oh wait, here it is, I found the money in my other pocket.”
Otherwise, we’ve got the biggest case of dine-and-dash in the history of civilization.
Friends, there is brinkmanship of a high order going on in Tea Party Washington. If no deal is reached on a debt ceiling—and the deadline is August 2nd—then the world’s biggest economy tanks, oops, defaults on its debts, gets its credit rating downgraded and its interest rates raised. Most of the United States government will hammer ‘Gone slumming’ on its doors, sending home all those good folks who work for it. The dollar will lose its green on world markets, and the world markets, utterly interdependent with the United States, will follow wherever that country’s economy goes.
Cue Lee Dorsey – Working in a Coal Mine: “Goin’ down, down, down.”
If a housing bubble in one corner of one economy can cause a world-wide recession, imagine the financial chaos resulting if the bubble that pops is the U.S. economy itself. That’s a double trouble bubble, Pops.
But the good news is (I know you were secretly hoping for some of that) if the United States’ economy tanks, bringing the world economy with it, that’s probably going to give the planet a boost towards reaching our short-term carbon reduction targets.
A silver lining to our economic superstorm. A silver spoon for our soupline.
But honestly—and I address this particularly to the masterminds of this unique plan, the Republicans over in the Tea Party and in Congress—as a way of addressing climate change, I think cap and trade, and an investment in technology and in a sustainable, no-carbon future would have been a gentler approach to the problem, you know, than bringing down the whole world economy.
But that’s me.