PLAYING WITH NUCLEAR WEAPONS
Fitch Places U.S.’ ‘AAA’ On
Rating Watch Negative
“Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. Default. The U.S. risks being forced to incur widespread delays of payments to suppliers and employees, as well as Social Security payments to citizens – all of which would damage the perception of U.S. sovereign creditworthiness and the economy.” – The Last Word With Lawrence O’Donnell, October 15, 2013.
LAWRENCE O’DONNELL: Jared, we saw last week – in one day – the cost of short-term borrowing to the Treasury DOUBLE! A cost that I think most Republican members in the House of Representatives don’t even know about.
JARED BERNSTEIN: Exactly! And that cost continues to go up. This is exactly what you would expect if we start fooling around with the Debt Ceiling.
It’s called a RISK PREMIUM, and it means that anyone, who considers lending to the U.S. government, historically the safest creditor in the World, would want to see some extra points, if you will, on their interest rate in order to be covered for the kind of risks that folks like Mr. Yoho were just talking about.
And that would be a situation kind of like if you are a homeowner and all your credit was cut off, and suddenly the Bank says, “You have to pay off your card today in full! You have no cash to do it. That’s the situation the U.S. would be in if Investors did not ‘rollover their debt’, which is reinvest in Treasuries when their Treasuries mature.”
WHO ARE THESE GUYS?
“And we saw a large negative economic impact from the last Debt Ceiling impasse. We can’t keep continuing to do this to ourselves. Even if we don’t go over the Edge, we are already hurting ourselves economically. We are already hurting the World’s confidence in our country to be able to resolve these crises. And if we keep tiptoeing up to the edge, one day we are going to go over. And that’s why I think it’s been so important for Democrats to say, “No, you get nothing! Even if it’s something we don’t care about, you can’t have anything!” because it will just encourage them to do this again and again and again… So when we think about who’s going to learn a lesson from this Crisis, I think we need to give up on the Tea Party Caucus ever learning the lesson – they are never going to learn the lesson!” – Krystal Ball
‘The LAST WORD With Lawrence O’Donnell’, October 15, 2013.
Transcribed & Edited by Tabacco because this subject is too important and currently relevant to delay while waiting for the Internet transcript.
Tabacco: I consider myself both a funnel and a filter. I funnel information, not readily available on the Mass Media, which is ignored and/or suppressed. I filter out the irrelevancies and trivialities to save both the time and effort of my Readers and bring consternation to the enemies of Truth & Fairness! When you read Tabacco, if you don’t learn something NEW, I’ve wasted your time.
Tabacco is not a blogger, who thinks; I am a Thinker, who blogs. Speaking Truth to Power!
In 1981′s ‘Body Heat’, Kathleen Turner said, “Knowledge is power”.
T.A.B.A.C.C.O. (Truth About Business And Congressional Crimes Organization) – Think Tank For Other 95% Of World: WTP = We The People