America, Don’t Scare Us More

The possibility of Greece going bankrupt, not to mention the U.S., is making politicians and bankers shiver. Meanwhile, it is more viable than the fall of Hellas and it’s two months away, writes Andrzej Talaga.

The Republicans want to use bankruptcy as a whip for Obama, so that he finally starts to cut the budget. However, this game may have unpleasant consequences. And what could be a more alarming concern for the markets in times of crisis than America flopping, even temporarily?

Washington exceeded its national debt limit — $14 trillion. In August, Congress must either raise it or America will declare bankruptcy. An idea is forming in the Republican Party to vote against raising the limit.

Until now, the United States was on a different route than Europe. Instead of cutting spending, they were pumping dollars into the economy without worrying about its debt and deficit; as a result they are one of the most indebted countries in the world. Forcing Obama to save is a good idea, but Republicans are accomplices to this disgrace. Clinton left America with a budget surplus. Bush’s wars landed it in debt. The American right wing should also repent.

This potential bankruptcy would undermine the already weakening confidence in the dollar and American obligations and, in general, America’s role as a stabilizer. If even the U.S. cannot manage its debts and is going bankrupt, what is certain in this world? So, it would be better if the Republicans suppressed their impulses and found another way to deal with Obama. Gentlemen, don’t cause us more anxiety.