Tuesday, July 26, 2011

Demoralized and ready to quit

We need a term for the 'anti-Chicken Little'. 'Pollyanna' is an inexact antonym and probably insufficient to the task. The 'Boy who didn't cry Wolf'?

The sky is falling. The rose colored glasses are broken. The Wolf is feasting on our sheep. Somewhere, Cassandra is crying.

But Megan McCardle still thinks the US has a credit rating to save and that people will blame the GOP for damaging it (and, hilariously, that that matters), but this piece is interesting for the revealed psychology associated with those beliefs.

The 'deal of the day' (1 $trillion increase in the debt ceiling for 1.2 $trillion in reduced spending over the next decade - DO YOU THINK WE HAVEN'T ALREADY SEEN THIS MOVIE?!) just does not cut it. Megan gets it at the end, "[W]e're hosed." She is correct, but not for the reasons she thinks. We've been hosed since the hoser was elected. I don't know that 2012 is going to matter.

Speaking of shared sacrifice, when we have a President who believes 2 $billion in savings from closing the 'corporate jet loophole' is relevant to a 14 $trillion debt (actually at least 5 or 6 times that if the government had to follow GAAP rules) - and to which he has suggested we should add 1.5 $trillion annually - we are being forced to hose ourselves.

The president believes the Revolution of 1776 was conducted in favor of taxation with misrepresentation.

To very loosely paraphrase an apocryphal anecdote about Winston Churchill:
Would you sleep with me for a 2 trillion dollar increase in the debt ceiling?
Well......... I suppose I would have to consider it.

Would you sleep with me for a 2 billion dollar increase in the debt ceiling?
Of course, not. What kind of monetary system do you think I am?

Madam, we've already settled that question, now we are just haggling about the rate of inflation.

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