Canceling the debt ceiling apocalypse
Before we begin, let it be said that the looming possibility of the U.S.'s default on its own debt is a not-insignificant issue. Let it also be said that the U.S. government may be unwilling to pay interest on its multi-trillion dollar publicly-held debt as of mid-October, and that this carries substantial risks. And, finally, let it be said that this is something we should most definitely avoid.
The potential for a default — however self-inflicted — raises the specter of just about every bad thing economically that you can imagine. And there have been no dearth of voices drawing attention to a variety of doomsday scenarios. The U.S. Treasury Department, which is not normally known for its hyperbole, just issued a report warning of a global economic depression should the U.S. default: interest rates will skyrocket, financial markets will panic, and the global financial system will lose one of its only bastions of predictability and stability.
The benefits of a ‘de-Americanized world'
This current bout of Washington inanity is approaching its denouement, but however it ends, it has accelerated a trend that has been gathering steam for at least the last five years: the move away from a Washington-centric world and towards a new, undefined, but decidedly less American global system.
The latest broadside was the widely disseminated editorial in China's state-run news agency Xinhua, which called for a "de-Americanized world" that no longer depends on the dollar and is thus no longer at the whim of "intensifying domestic political turmoil in the United States." That follows on the heels of a Vladimir Putin's op-ed in the New York Times in which he called out the American tendency to see itself as an exceptional, indispensable nation. "It is extremely dangerous," Putin concluded, "to encourage people to see themselves as exceptional, whatever the motivation."