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Debt Ceiling Madness Goes to the Wire

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Simply Sarah7/26/2011 1:45:27 pm PDT

Honestly, the more I’ve been thinking on this (Which is way more than I wish I were), the more clear it becomes that a sizable (Or, at least, powerful) segment of the far-right is not just OK with a possible default, but is actively hoping and pushing for it. In their minds, it can only bring good. I’m pretty sure they are quite literally trying to play out Atlas Shrugged here.

- Kill Obama’s reelection chances (I think there’s a lot of validity to this. If the economy tanks again, it’s very likely Obama will end up taking most of the blame come the 2012 election purely due to being President. I don’t know if most people will be able to look past that)
- Force immediate massive cutbacks in government spending and programs that can only grow as this continues and as revenue drops due to a free-falling economy.
- Default will make it harder and more expensive for the government to borrow money, forcing further spending cuts to free up money either to pay for the debt or because the U.S. will simply stop honoring debt and will lack the funds for anything.
- With the likely collapse of the U.S. dollar as a reserve currency, along with the hit to economies around the world, a new (But not really) standard backing for money will be needed. You all know where I’m going with this.
- As a bonus, it might push the EU over the edge, tearing down all those socialist disasters once and for all.

Yeah, it’s a bit paranoid and I doubt many have actually thought that deeply about the topic, but I can’t help but think that more than a few powerful people really are thinking something along those lines.