Tuesday, July 26, 2011

In Washington, the irresponsibility of the Republicans

Europeans in the euro area expected to be on the brink to decide last week, a second bailout of Greece. As if the prospect of a serious crisis was only able to fairesortir wait a casual. But they have an excuse: they must decide seventeen to one performance! The United States has no such excuse. The country's public debt is the responsibility of federal power.

Even if the founding fathers of the American Republic wanted a clever balancing act between the president and Congress, it is them and them alone, that depend on the decisions in this area. They do not. They are paralyzed. They expect to be on the brink, too. In less than a week, if Democrat Barack Obama and Republican majority in the House of Representatives do not agree, the U.S. Treasury will be in default of payment.

This, as would not have failed to do an implosion of the euro zone, will cause economic and financial catastrophe. It is as if the American system of government was not working, or else more and more difficult, especially on this central issue: how to get out of debt.

We know the problem. United States, there is a legal ceiling of public debt (all deficits accumulated over the years), if achieved, we need a congressional approval to raise it. Otherwise, the United States can no longer borrow. Now this is how they fund over 40% of their expenses - by issuing Treasury bills.

The Republicans have linked the increase of the debt prior to a vote on reducing the budget deficit over the next finance laws. This is where the president and Congress are fighting for weeks. The ceiling of the debt has hit its limit of 14,300 billion in May The Treasury Department has warned that the government could no longer fulfill all its commitments as of August 2.

It will no longer have enough resources and will be technically bankrupt. Every day that passes, the Washingtonians psychodrama makes markets a little fever and affects the economy. The Republicans are responsible for this impasse. While they are the party that has eroded the public finances in recent years, they rejected a compromise proposed by courageous Obama: a substantial reduction in the deficit by cuts in public spending and higher taxes of the richest.

It was a project centrist. But then, the second major American party has become extremist training. By ideological fanaticism, Republicans refuse any tax increases. This will condemn Obama for a minimal agreement on the debt and temporary. Avoid probably the default. But the irresponsibility of the Republicans is a blow to the image of America.

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