http://www.bbc.co.uk/news/world-us-canada-14258888
Well, 8 days to be precise.
The US has an enormous debt. The only way it can make it's next payment is by some combination of higher taxes and cuts to welfare, etc.
The republicans want to load it all on the poorest. the democrats want to spread the burden a little more evenly. They play power games in the meanwhile. I suppose an eleventh hour agreement will be reached, where some combination of cuts and higher taxes staves off the default.
But what happens if an agreement isn't reached? If the US does default, then the global economy seems likely to go into freefall. I'm not a financial expert, but this does seem like the sort of event that might trigger a bit of nervousness in the markets.
But... But...
But what happens if agreement is reached? Uncle Sam takes it from you, as taxation, or gives you less in benefits. You have less to spend. If people can't afford to buy products and services, people providing the stuff can't sell them. Lay offs mean people have less money. Blah blah blah.
So it seems to me that even if the shit doesn't hit the fan next week, it can only be a matter of time before the inevitable happens.
Now OK. I know people have been pointing out that perpetual growth is impossible for a long time. Malthus is the most famous. Of course there is no way he could have known that we'd discover how to turn fossil fuels into unprecedented supplies of energy and wealth.
But still, we could be a week away from a financial disaster that engulfs the world. I'm surprised more people aren't paying attention.
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