Everyone has been in a panic this week over America’s impending fiscal collapse, but I think the reality is that America does not face an immediate debt crisis. Take a look at the simplest indicator, the day that Standard & Poor’s raised its now famous warnings about America’s debt, markets decided to lower America’s borrowing costs and the dollar rose against its principal alternative, the euro.
The real problem for America may well be that it does not face a short-term crisis. Over the last few years, everyone has been worrying about America’s debt, and despite all that public worrying, markets keep lowering the rates at which we can borrow money.
Anyone want to take a stab at this one?
- “Standard and Poor cuts long term outlook for US Debt to negative: Thank you Congress, WTF?” and related posts (anaverageamericanpatriot.blogspot.com)
- A U.S. debt crisis? Only if we make it one (timesunion.com)