US default can be good value
Posted by Dave Bath on 2011-07-30
I admit hoping the impasse in the US continues until a US default – as it would do much good worldwide, not the least, help the US citenzery a great deal, although in the long term
For one, the US dollar needs to be treated on its merits, devalued by the market rather than priced at a premium on the basis of nostalgia.
A default, then backdown of the Republicans so employees are paid, would through a low greenback and deserved loss of consumer confidence, might help muzzle consumerism first in the US and then across the world.
A generation-long technical depression is not incompatible with decent lives everywhere, if capital and production moves away from supplying the affluenza addiction and redirected to real human needs.
A population can be fed, housed, literate, and concentrate on human-heartedness more efficiently without skewing production to trinkets, without the extra floorspace for the wealthy to house those trinkets.
A long technical depression is not inconsistent with better lives, better provision of necessities – and politicians who can only manage a wasteful economy with GDP growth not merely illusory but counterproductive, are unfit for their positions as leaders.
This redirection is useful, no, necessary (if not sufficient) for managing the misery climate change will cause.
People fear economic adjustment to climate change, a percent or two cut on growth, without considering that it is possible for cuts to be targetted, indeed, cutting non-essentials more than the environment requirements permits an increase in economic activity in essential sectors.
A plummeting avoidance of trinkets, a redirection of reduced total economic activity to increase economic activity where it should have been concentrated anyway … if a US default can hasten this, then bring it on.
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