Financial Armageddon; Hello Mongolia; Hello, Uganda!

Today, this blog has had a hit from Mongolia and one from Uganda. I have no way of knowing whether any of these hits correspond to someone actually reading an item. WordPress, the sponsor of this blog, does not keep this kind of numbers. And, perhaps, it’s just as well. Visitors from outside North America are very welcome on this blog. They are also welcome to make requests. And I prize their rare comments.

This is the Nth day of federal government so-called “shutdown.” The American Left, the Obama Administration, various international pundits, have been predicting world financial Armageddon because of the shutdown and because of the budget battle that will probably follow. Instead the most common stock index, the Dow Jones Industrial Average, was up 62 points today. That’s not much but it’s not nothing. It’s up, not down. It’s not quite half a percentage point up (.42%). The French CAC40 was also up. Up is not down, no matter how you look at it.

The coming federal budget showdown (don’t confuse with “shutdown”) is about the executive branch borrowing money. It’s not borrowing money because it’s facing some extraordinary expense. It’s become routine. The belief that the federal government cannot operate within its financial means has become deeply anchored without ever being presented to the people for a vote or even for a talk. Conservatives object.

Many conservatives affirm that government borrowing should never occur except under dire and exceptional circumstances. Me, I am a wishy-washy moderate conservative. I could be convinced that federal borrowing is virtuous but I want the discussion to take place in the open. We are working on it.

There is a small technical thing that bothers me around talk of government “defaulting.” Perhaps, someone or something can help me with this. Suppose I own government debt; suppose I own a Treasury Bond for $1,000 coming due on October first. If the federal government fails to give me my money on October 1st but, instead hands me on an IOU confirming it owes me $1,000 that it will pay soon, how worried should I be? Is my landlord not going to accept the IOU? Is the bank going to toss it into the waste basket?

And would the executive branch of government do something illegal, unconstitutional by issuing such an IOU?

About Jacques Delacroix

I write short stories, current events comments, and sociopolitical essays, mostly in English, some in French. There are other people with the same first name and same last name on the Internet. I am the one who put up on Amazon in 2014: "I Used to Be French: an Immature Autobiography" and also: "Les pumas de grande-banlieue." To my knowledge, I am the only Jacques Delacroix with American and English scholarly publications. In a previous life, I was a teacher and a scholar in Organizational Theory and in the Sociology of Economic Development. (Go ahead, Google me!) I live in the People’s Green Socialist Republic of Santa Cruz, California.
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4 Responses to Financial Armageddon; Hello Mongolia; Hello, Uganda!

  1. Pingback: Financial Armageddon; Hello Mongolia; Hello, Uganda! | Notes On Liberty

  2. Dolph says:

    You should be able to tell with analytics and bounce rate if they are actual visitors or just crawling spiders. My guess they’re actual readers.

  3. Terry Amburgey says:

    The party line has changed. You need to change your tune to be in line with the echo chamber.
    http://online.wsj.com/news/articles/SB10001424052702304561004579137791687537388

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