Thursday, October 10, 2013
And the winner for the "Dumbest Person in America" goes to...
Rep. Ted Yoho (R-FL), who said on not raising the debt ceiling, “I think, personally, it would bring stability to the world markets.”
And this: “We need to have that moment where we realize [we're] going broke.” He firmly told the paper, “I’m not going to raise the debt ceiling.” He also characterized the current government shutdown as “the tremor before the tsunami.”
Is this what happens to folks who eat alligator tails for breakfast and smoke palmetto palms in the evenings? Is there some special mind-altering substance in Florida's water? How does someone in Rep. Yoho's position manage to say something as moronic as that?
Oh...wait...he's a TeaPublican.
Here's what to expect from not raising the debt ceiling, by people with normal firing neurons:
Prepare for a "financial apocalypse," says Yalman Onaran at Bloomberg.
Failure by the world's largest borrower to pay its debt — unprecedented in modern history — will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. Among the dozens of money managers, economists, bankers, traders, and former government officials interviewed for this story, few view a U.S. default as anything but a financial apocalypse.
Mark my words, says economist Justin Wolfers:
This would plunge the U.S. into a recession. If you hit the debt ceiling, then you can't borrow any more money, which means you've got to bring the budget deficit down to zero immediately. It's currently four percent of GDP. So this would cause a huge fiscal contraction if the debt ceiling limit wasn't raised for a persistent period. Big enough that I can be absolutely confident it would plunge the U.S. into recession. [ABC]
Expect "chaos unlike anything anybody has seen before," warns Arizona State professor Dennis Hoffman.
If U.S. credit faltered, lenders around the world would think twice about making loans, including the ones companies rely on to make payroll every week. "This would be a financial collapse and chaos unlike anything anybody has seen before," Hoffman said. "It's unthinkable." [AZ Central]
Here's the scariest thing, says Derek Thompson at The Atlantic:
No one knows how bad it will be. The truly scary thing about going over the debt cliff isn't what we think will happen — a scramble to prioritize payments, delayed checks to groups like veterans and senior citizens, and angry, confused investors. The truly scary thing is that we actually have no idea what will happen. We don't know if it's even possible for the government to prioritize payments to millions of different clients. Households, businesses, and investors don't know how long they'll have to wait for their money, whether it's a defense contract deal, a doctor's reimbursement, or a Social Security check. And nobody will know how long the nightmare will go on. [The Atlantic]
But yahoo Representative Yoho thinks not raising the debt ceiling will be a good thing for the country and the worldwide community.
And yes, he is a TeaPublican. Q.E.D.
cartoons via Squatlo Rant
"During the impeachment of Bill Clinton, Republicans were pretty unpopular. After eight years of George W. Bush, same. But never in the history of Gallup polling has the party been more unpopular than it is right now. A crucial caveat: that history only goes back to 1992, so it doesn't include, for example, the post-Watergate era. But still, over the past 21 years the Republican Party has never been viewed less favorably by Americans than it is right now."