@Finn dAbuzz,
Quote:The fact that there is a global economy, doesn't even remotely make us all world citizens, and whether you like it or not, we very definitely are the biggest kid on the block....
But the global economy does determine whether the rest of the world wants to do business with us, and the interest they charge us for buying up our debt. Being the biggest kid on the block doesn't mean much if we appear economically unsound, or unstable, or if our credit worthiness is at all in doubt.
Don't kid yourself, we can't afford to be oblivious to how the rest of the world regards us. The viability of our own economy depends on our image, including our image of fiscal responsibility, and that image just took a needless negative hit, and we will pay a price for that.
I'm not worried about the sneers coming from any quarters, but I am worried about the global financial decisions made beyond our shores, that can directly impact our economy, and those decisions might well be affected by the kind of fiasco that shut down our government and brought us to the brink of default. Whether we like it or not, we are citizens of the world, we do not exist in a vacuum, and our emotional health depends on those beyond our borders and how they regard us.
And I'm worried about what this pointless tea party temper tantrum has already cost us.
Quote:Government Shutdown Cost $24 Billion, Standard & Poor's Says
10/16/2013
WASHINGTON -- The government shutdown has taken at least $24 billion out of the United States economy, the financial ratings agency Standard & Poor's said Wednesday.
The firm said the shutdown caused it to cut its forecast of gross domestic product growth in the fourth quarter by at least 0.6 percentage point. The agency lowered its estimate for GDP growth to close to 2 percent from 3 percent.
The estimate represents a staggering cost to the economy of a completely self-inflicted political catastrophe. Unlike the 2008 economic crisis and other past recessions, the government shutdown had nothing to do with larger economic trends. The numbers show Washington's brinksmanship caused real damage beyond furloughed government workers and the Washington, D.C., region.
The shutdown came after the Federal Reserve reported modest growth in the economy in September. "Reports from the 12 Federal Reserve districts suggest that national economic activity continued to expand at a modest to moderate pace during the reporting period of September through early October," the Federal Reserve wrote Wednesday.
http://www.huffingtonpost.com/2013/10/16/government-shutdown-cost_n_4110818.html?utm_hp_ref=politics
And, all we've done now is kick the can down the road because we'll be back in this same place a few months from now. Can we really afford any more self-inflicted economic wounds of this sort? And what's going to prevent that from happening?
I think we do have to start listening to what the rest of the world thinks of us. Maybe it will help to bring us to our senses.