Sunday, October 13, 2013

WHO'S AFRAID OF THE BIG BAD SHUTDOWN? #America #Debt

Shut-down in America, is it so bad?


The American federal government has been shut down. As a negotiating tactic, US President Obama had park rangers shut down national monuments and tourist attractions.

Another almost spiteful shut-down was an animal camera in a zoo. Government contractors and the 48% Romney infamously referred to would be expected victims. Polls say only one in five Americans have been affected so far. Catholic media are upset about an alleged ban on mass for the military.

All newsworthy no doubt. However, much ignored is that while the Federal government and its strange pet projects shut down, local and 'state'/provincial governments did not.

There is fear America's ever burgeoning debts will not be paid by taking out more debt from geopolitical foes and bond holders. This debt is there due to America's extensive social spending. It also seems to be a debt America is increasingly unable to settle in full.

So the Shutdown came, and the debt default is feared? Feared by who though? Who expects the American government to continue to be able to pay massive debts day in and day out?

Granted I would not invest in America right now and a jumpy stock market could crash, but America is hardly acting like a trustworthy debtor. Rather they require debt for ordinary daily work, not infrastructure investments.

That is any way a bad investment.

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