The time for difficult decisions is upon us.
It would seem however that most folks are kicking the can down the rose-colored path.
Hindsight is not visually impaired but one's current lens is often covered in opaque lipstick. Admittedly, it is difficult to see beyond one's current environment, to envision a day when the institutions, the very premises by which your life is conducted, ... change.
It is in our national interest for stocks to go down and for the dollar to appreciate. Equity is the first loss tranche and we need to take the punch and strengthen the credit side of our collective business. Yields on coupon rated securities must stay low enough, long enough, to move massive debt up the curve lest we risk fiscal insolvency.
If there is a PPT expect that they have joined up with the evil shorties.
Trade protectionism to insure that stimulus spending is not going overseas is critical. Protecting our industries and our jobs (existing and proposed) essential. I am a free trade advocate, but I am a patriot first, in a storm you protect your family before your neighbors'.
A bank holiday where the Federales liquidate insolvent banks' capital structures (with the burden of proving solvency emphasized) per a crazy concept called price discovery is in the national security interest of the United States.
Fiscal initiatives that mandate and hold steadfast to the goal of increasing incomes on a generational basis are the greatest challenge in front of us.
Although it grieves me to say it, both given the implications for human suffering and the rapscallians throughout history that have parroted such a view but ... sometimes to solve a problem you have to make it a bigger problem.
If we can accomplish the Houidini-esque stunt of funding this debt at manageable levels it will only be by literally defining AAA as anything American (i.e. if America becomes AA then literally AA is the new AAA, with the assumption that the reasons for our 'downgrade' would serve as deleterious to all others, except maybe Mr. Gold.)
Such a scenario would see America emerge from this dust-up a bit staggered but with full swagger.
Even as a patriot, a gnawing meditation provides an instinctive wince - its' thrust concentrated with the pointed reflection, ' And if we do emerge stronger than ever, did we deserve to?'