Right now, if you have not kept pace with US government dealings, they owe a vast 500 TRILLION dollar debt, which is the ceiling at which they are by their own law allowed to borrow. Now while in office as a senator, Mr. Obama voted against letting Bush raise the debt ceiling, and with good reason, if allowed to mushroom the debt even higher, (to pay for ever more war) they would lose the sterling shiny triple A credit rating. As it is right now 42 cents of every tax dollar collected goes to pay interest on that debt. To float the debt to say 600 TRILLION would increase the interest (even if it was to remain at the same triple A rating which it would not) to 52 cents on every tax dollar collected. Well one can see that this means never being able to actual repay the people that have mistakenly bought the Government Bonds, and other negotiable papers that governments use to raise money.
BTW to whom does the US government owe this money? Well it is estimated that more than half possibly as much as 60% is owned by the Chinese and other Asian money lenders. They have had a way of leveraging their own interests by dumping US bonds whenever they become displeased with the USA and causing a huge drop in US currency values as well as many other stock market ramifications. So as a great many bonds and such come due for payment, Obama is scrambling to find ways to not default on his debts. Like many middle class Canadian and Americans living in denial, he and the US government are looking to renegotiate loans, find "bridge financing", (read "consolidate debt") etc... but whenever you do that you end up losing your triple A status. Borrowing from one bank to pay off another works only for a short while and eventually you get caught, as the US is now caught.
So what does it mean? I have read money reviews, written by egg heads who are way above my pay grade saying that they can see NO WAY that the USA can possibly come out of JUNE intact with a triple A credit Rating. The most capital C conservative think tanks are saying they will drastically cut back in all areas of government spending. Well welcome back to the sixties people. Race riots will run rampant as not enough has changed in the US of A that makes the black man equal to the white in earning and living power. The poor will find less ability to get by on social programs, as they are always the first things cut. Then watch as it gets more dirty, as defense spending goes down the drain, and contracts for defense go up in smoke and millions of people join the jobless. Add to this the global increase in demand for basics like grains, and fuels, and you have people unable to afford to drive to work, or pay for food. If you don't believe me look at the middle east. You really don't think all that fighting over there lately has a thing to do with those in power? It has everything to do with those people with growling stomachs unable to pay for gas to get to work, and unable to pay for food to feed families.
So how does that affect our coming election in a few days and the funny "surge" in NDP support? It has all the tidings of a leader who wants out of the hot seat during what is likely to be a very hostile year or two. If you don't think I am serious I have written basically the same thing to Jack Layton pleading with him to NOT form a coalition government under any form. He can only lose in the long term. Let Mr. Harper swim in the cesspool of his own making. By ducking out like Trudeau did then pointing the finger later saying he could have done much better, and look at how he handled things when it got tough.... it is like handing him power for 12 years after this cools off some.
In the short term we will suffer. Our markets for the most part lay to the south of us, and they will not be open to buying things, especially not if our dollar becomes worth 1.50 or more US. (and no I am not kidding). Our own National debt is huge, but not unmanageable. Even when you factor in our provincial debts we can cope, but can we cope and put up with no one buying our goods? We shall need to find new markets and that won't happen overnight. New prices will come into effect, and that will effect job costs, and all the while spiraling increasing costs for goods will hurt us.
Damn I am glad I am nearing the end of my years on earth. I fear for those of my kids who are forging a future, as right now it is not looking very good at all.
Willing to listen to any decent debate, that doesn't involve personal attack on this.







