The editorial opinion of the economist this week is that the house republicans haven’t got their prioirities straight. They are playing with fire by blocking the federal budget, which threatens not to raise the debt ceiling on October 17th. The government would thereby be unable to borrow above the current legal borrowing limit and might have to slash spending leading to a recession. Worst of all America could default on its debts leading to international repercussions, beacause the world’s reserve currency could drop a credit rating, causing a financial crash, as federal debt is no longer seen as healthy collateral.
It is frightening to realise that the health of US politics is not only in question. The actions of right wing southern republicans, a political minority, can have such a disasterous global impact on the financial sector.
“The Federal lawmaking process is so poralised that it is paralysed” – As stated in the editorial of The Economist.
I had previously looked on at US political polarisation as something of an amusing quirk. Europeans satire american politics. But with a US government shutdown, the whole world shudders with aprehension.