22 Days To Armageddon! Here’s How The American Economy Is Hurtling Towards An “Own Goal” And Why It Matters To All Of Us!

Global Economy
Photo by Daniel Lloyd Blunk-Fernández on Unsplash

Is the United States hurtling towards a “self inflicted” economic apocalypse? Do “we” have only 22 days left to “save the world”? In case you think I’m talking nonsense, let me enlighten you to the “simple” fact that the US economy has until June 1st to stave off a “devastating” default on its’ debt. Unless President Biden and the “recalcitrant” Republicans agree on raising the Debt Ceiling, it is “kaput” (German for game over) for the American and by extension, the global economy, as both are “joined at the hip”. So, dear readers, the stakes couldn’t be higher for all of “us”.

It needn’t have to be this way. Indeed, the Debt Ceiling itself is an “archaic” relic from the World War Two times and something that has become a “useful idiot” kind of tool for Republican posturing. There is no rational reason why it should not be abolished, just as there is no logic to the “insane” demands from the R’s. Of course, nobody likes to have “maxed out” credit cards and the “adults in the room” have to rein in the reckless spending. However, money once spent has to be repaid, and any “reasonable” conversation should be after the bills are paid. Not throwing “childish” tantrums on the racked up debts. In a nutshell, this is the “crux” of the debate and something that the “nutty” extremists who have “captured” the GOP should remember (if they do indeed have a long memory that “proves” they were the ones responsible for running up such huge debts).

Given these “hyperpartisan” stances, one can only “pray” that “sense” prevails in today’s meeting between the Congressional leaders and President Biden. You may very well ask what does this “distant” issue have to do with us, here or anywhere in the world. For that, the mundane response would be that the United States as the “preeminent” superpower weilds an “exorbitant” privilege on our economic and often, social fortunes and so, it is time to “worry” about the “End of the World”. Perhaps, this sounds “evangelical”, though the current Biblical adherents “out there” would well agree with. 22 Days to Disaster!

Now, there is something “surreal” about watching this “crisis” in real-time. However, the “day after” the default would NOT be funny for anyone, least of all “us” mere mortals, having to deal with “extreme” volatility and a sense of “unreality”. Reality TV is good only till the shooting starts for “real”. A bit like what happened to Alec Baldwin on the sets of the movie, Rust. There is nothing entertaining about seeing life savings going up in smoke, or for economies worldwide to “crash”. However much our leaders claim that we have “decoupled” from the US economy, the harsh truth is that America matters to all of us, even if we don’t matter to “them”. More so, when the US Dollar is the “reserve” currency around which the global economy “pivots” on.

Last, this Debt Ceiling “drama” if it turns “sour” can very well “hurt” the United States more than the rest of the world. For starters, the aforementioned USD would no longer be the “king” Dollar, as is the fact that the Credit Rating of the US going down several notches. Second, in “their” own words, a default would be akin to economic and financial “Armageddon” unleashing a severe recession on the American economy and rendering nearly 8 Million Americans jobless. Third, and the “popcorn” moment for Xi and Putin, is the “damage” it would do to the “prestige and standing” of the USA in the world. After all, who takes someone who can’t pay their bills as anyone to lead the world?


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