Posted by: coastcontact | October 14, 2013

America’s Standing is at Stake

I wrote I would not spend time listening to all the talk about government shut down and debt ceiling but the talk and news reports are everywhere.

I am really becoming frightened by the threatened default of the U.S. government.  You see reneging on its debt obligations would make the U.S. the first major Western government to default since Nazi Germany 80 years ago.

Germany unilaterally ceased payments on long-term borrowings on May 6, 1933, three months after Adolf Hitler was installed as Chancellor. The default helped cement Hitler’s power base following years of political instability as the WeimarRepublic struggled with its crushing debts.  We all know where that led.

Today we are faced with have similar situation.  A small group of congressmen (the Tea Party) have taken control of the Republican Party and consequently are holding the government hostage.  They want to stop government borrowing and paying out only from the revenue received.  The Tea Party members do not believe that there will be any consequences to a default.  If only I could get away without not paying back my loans and meeting my commitments.

Will we see chaos in America that leads to a dictator in the name of stability?  Dictators frequently need a scapegoat.  Will it be the Jews?  Perhaps they will blame Hispanics and specifically Mexicans as the result of the influx of illegal aliens.

I predict that a default on America’s commitments will reduce this country’s credibility.  The world is on a de facto dollar standard, similar in some respects to the British pound sterling standard of the 19th and early 20th century.  The U.S. dollar will not be the world’s reserve currency if there is a default.

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Responses

  1. I hadn’t thought about the similarity to germany at the start of Hitlers rise to infamy, but it fits. Like yourself, I am watching with horror what is transpiring in our country.


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