Earlier in the summer the threat of a government shutdown loomed large in Washington with wild predictions in some circles that President Obama would be forced to implement the 14th amendment to the Constitution to keep the government ticking over. That didn’t happen of course. Instead, as I suggested on Sky News, the politicians in DC merely kicked the problem into the long grass in the hope that the issue would be resolved. It hasn’t been and the issue is back once again as the end of the fiscal year arrived on Friday. Continuing resolutions are no way to run the United State’s government.
At a time when world markers are plummeting and investors and citizens are looking for signs of confidence in the market, politicians in Washington are doing their utmost to worsen the situation. Blame can be spread around and suggestions that this is simply a Tea Party roadblock are misleading, if for no other reason than that such a party doesn’t really exist as a single entity. Leaders from both sides of the aisle need to unite for the long term interests of the nation.
Policymakers and lawmakers need to recognise the damage that is being done not only to markets but also to the long term reputation of the United States by their actions. Critics enjoy analysing American hegemonic decline. Their work is made easier by the very individuals sent to Washington to prevent such an event.