Monday, August 01, 2011

Debt Ceiling Raised To The Roof

This weekend, another brick was laid in America's long, winding road to financial implosion. Our leaders reached some kind of deal on raising the debt ceiling, which has been raised umpteen times already after World War II. We can now look forward to being the butt of jokes among those countries whom our financial strongmen at the IMF have bailed out and restructured.  Russia took the lead today in calling us out for our profligacy.  That criticism is likely intended for a domestic audience; no doubt Russia likes the rise in oil prices driven by our Federal Reserve's monetary expansion. 

Speaking of the IMF, it's coming off its leash.  Mme. Lagarde is gently admonishing us that maybe our Treasuries aren't such a hot product after all.  Good for her.  She knows the U.S.'s time as hegemon is drawing nigh.  Maybe Russia can be the IMF's new backer if it throws some oil money over the fence.  They can start planning new bailout packages for investors who are about to get burned by the new bubble in emerging market bonds