when you run a balance of accounts deficit it is kind of like your trading partner, e.g. China, is giving you stuff for free.
Is the World Bank going to impose sanctions? Why should we care?
Will the US remain the world's largest consumer economy? Well, we might have some difficulty getting our beloved Mid East Oil. The Kingdom and the Emirates might take default personally.
With other trading partners can we take the position: We are your largest market. Consider the hit as a cost of doing business and the market is open. Promise not to do it again. If so, then I would truly know WHY I AM PROUD TO BE AN AMERICAN!
If the US defaulted how much of a world economy would remain?
I can see that it would stop the accumulation of wealth by the top 1% in its tracks. DEFAULTS FOR ECONOMIC JUSTICE!
As a practical matter we may have to forgive our debtors. The Lord's Prayer as Economic Policy! This is getting good.
But I still would like to know what Keynes would say. Can anyone channel JMK? If sanity be culturally normative, then by the norms of this culture I claim insanity.
