There are quite a few conflated statements and actions in
circulation regarding America's economy and monetary policy. While
it is true that raising a debt-ceiling does not in fact increase
overall debt, rather just re-calibrates a county's ability to fulfill
its outstanding obligations, and despite evidence to the contrary
about past fiscal cycles, history and precedence and possibly the
very definition of madness in expecting any other outcome, such a
correction does not necessarily speak to thrift and discipline. On
the contrary, a commitment to not default and continue to match the
caretaking and stewardship responsibilities of a government
demonstrates a discipline usually understood to be the opposite.
Unfortunately, these overtures came on the heels of the unexpected
announcement by the US Federal Reserve cadre to continue its policy
of quantitative ease (read printing more fiat money) in order to
encourage growth and investment. Interest rates could hardly be any
lower to discourage the hoarding of money in savings and encourage
growth through investments—being the more attractive place to make
one's money work for its keep. Stakeholders, however, cannot be
exactly led to water by dwindling attractions, when amounts are large
enough to be insulated. Half-a-percent of billions is quite a lot,
even when swimming upstream. Bursars the world-around rally, knowing
there is enough cushion to offset the lack-lustre dollar with
selective prestige projects. Though from separate accounts, it is an
awful coalition, a coming together, a flittering programme to back up
some eighty-five billion dollars monthly of shaky bonds (debts) with
copy-machine collateral compared to the goal of saving eight-billion
dollars spread out over a year, with follow-on aims for the next
decade, in the name of sequestration—which, I suspect, achieved
retrograde success. Already agencies, petty tyrants, are being urged
to update contingency plans for a lapse in funding, which will play
out the same as the exercise in work-stoppage known as furloughs.
Absent cooperation and clear objectives, I am not sure what
economies, who have painted themselves into a corner, could do.
