Human nature is a strange beast sometimes … and never more so than when politics is involved.
It is no secret that the US government have a big issue on their hands, requiring some decisions to be made before they default on their financial commitments.
The picture of Nero fiddling while Rome burns comes to mind. The politics being played out in Washington is mind boggling when you realize that these people are elected to look after the interests of their constituents … the impact on the US economy will be significant should they default, but they don’t seem to care. What is even worse is that these political hacks are all fighting to get their “position” not just at the risk of the US economy, but at the risk of the whole world’s economy. Some reports suggest that a default will almost certainly cause another recession (a. IMF chief’s warning, b.JP Morgan report, c. Even the Philippines is looking at a potential gain for its currency!) … hard on the heels of the last recession which was caused by greed in the banking system, with a large US involvement!
Maybe it is naïve to suggest there is a time when politics should be “off the table” and smart people sit down and work together towards a solution to a grave problem … but I don’t mind being labelled naïve. NOBODY wants another recession, and the world is waiting for US politicians to do the right thing … I hope they don’t disappoint us!!