The Cost of War
It’s not just the “markets” that are breathing a sigh of relief – the rest of the world was probably holding it’s collective breath as well. The US economy is simply “to big to fail” (to borrow a term from recent government bail-outs of troubled corporations) and de-faulting on its debt would have impacted on every economy on this planet.
Interesting that the US$1 trillion debt that equates to the cost of America’s involvement in two current wars in the Middle East…
Cutting US$1 trillion from the US economy… I wonder how many poor buggers will end up losing their jobs, as the American government reigns in spending. When governments cut spending, that inevitably entails people losing their jobs.
US$1 trillion spent on two wars. And it’s American workers that will pay the price. Democracy, eh? Ya gotta love it.
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“Too big to fail”… rubbish! The US economy is going to blow, guaranteed. We just can’t see ‘when’ because the central banksters at the Fed can keep QE-to-infinity up for a long time yet, possibly even into the next decade. God knows what the world economy is going to look like by then… but I’m fairly certain it won’t be pretty.
Agreed, SM.
I recall an article written by an economist, whose name I can’t remember, in the early 1990s, soon after the collapse of the USSR. The economist stated that the USSR fell apart because it had failed to win an arms race with the US, that had bled the Soviet economy.
He made the point that the US economy was not much better off, and the US was fated to end up in the same fiscal mess-basket. The only reason it hadn’t happened was that the US economy was so vast that sheer momentum was keeping it going.
I guess we’re seeing that momentum finally grind to a halt…
And yes, it’s not going to be pretty for the global economy.