A default on the U.S. debt is a fallacy. Government is taking in plenty of tax money to cover the carrying costs of our debt. However, there will be significant austerity that will hit the American people if politicians do not raise the debt limit. Just like all other nations who have lived beyond their means, cuts will be implemented. Is there an alternative?
On Sunday (Oct. 13). Yahoo news published an article concerning Jamie Dimon of JP Morgan bank. The article did not talk about JP Morgan’s last quarter loss of $380 million. Nine billion in legal expenses fighting government corruption charges was the cause for their monetary loss.
Dimon did state how disastrous a U.S. default would be to the world’s economy. Really. Perhaps his fear is the repercussion of the austerity coming to the USA. He sees what has happened in other nations when people lose their benefits/handouts from government. Rebellion. What we see around the world is a failed economic system developed 100 years ago in the USA and spread around the world like a cancer.
JP Morgan and other banks “too big to fail/jail” fear the awakening of the sleeping giant in America, the people. When we feel the pain of austerity and realize both major political parties are under the demands of the banks we will look for honest answers to the tough questions. We continue to sleep because we are comfortable. Austerity is about to kick us out of our comfort zone.
The alternative answers are there but first we will feel the sting of our failed monetary and fiscal policies. Then we will start asking the tough questions and look for honest answers. When we are ready to unite as a people great things can be accomplished.