Messrs Blankfein, Dimon & friends have yet to learn that reasoning with a drunk is a waste of time. Congress' insobriety is a heady mix of power-mongered insanity induced by dull-witted intellectual inferiority. They can't help themselves. Enough said.
The BURNING issue is no longer the US-debt ceiling and the probable downgrade of US paper by the ratings agencies. The damage that Congress is doing to the credibility of the US dollar as the international standard is much more dangerous. For some time the United Nations has opined the view that the US dollar should be replaced with a more stable system. The consequence for the US economy after a significant decline in the dollar versus the global currency cross, is difficult to quantify. Nevertheless, their energy needs alone, paid in 'international currency', will induce a US economic collapse. The US has, until now, exported its debt. China holds approximately $1.2 trillion worth of US debt and Japan close on $1 trillion. Paying that back in 'international currency' on a declining US dollar is virtually impossible.
Perhaps it's time for rational compromise....
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