Obama’s Debt Ceiling Gambit

By Chandrashekar (Chandra) Tamirisa, (On Twitter) @c_tamirisa

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The alignment of the sun with the center of the Milky Way (a growing black hole) – the galaxy it is a part of, and around which it and the solar system revolve – along one of the axes of their elliptic orbit, the major or the minor – is a cause of considerable anxiety for a variety of poorly documented reasons in the history of the planet, given the extraordinary length of time it takes for one such complete revolution.

The last time such an alignment happened, human beings began calendaring at the beginning of civilization.  It is unclear if, in fact, our star, the sun, will indeed be aligned with the center of the Milky Way, along one of the axes of the elliptical orbit, because it takes 25,800 earth years or 1 great year to complete one solar elliptical orbit, a quarter length of the elliptical curve estimated to take approximately 6,450 earth years, not 5,125 years.

At on December 21, 2012, the longest day of winter in the northern hemisphere in any year (or winter solstice), the end of baktun 13, our national debt is expected to exceed its national income, an inauspicious technical threshold which signals an imminent currency crisis for forecasters, by about $1 trillion. 13 is an auspicious number for United States of America, its debt burden, however, is not so auspicious, because it is unaligned with its founding values. The rest of the world, therefore, is triskaidekaphobic, as it usually is, of the United States, and eager to help.

Mario Draghi, the chief of the European Central Bank (ECB), a former executive of Goldman Sachs in Europe, wants to help. He wants the ECB to buy bonds of countries in economic distress, United States being at the top of that list. The Economic and Monetary Union (EMU) of the European Union (EU) is willing to join China and Japan as America’s (and India’s, a country which is dependent on foreign trade and foreign currencies unlike America) major creditors to alleviate the anxiety in the economic recovery of about three quarters of the world’s economy.

United States Congress and the White House feel elated. There is someone to write a check across the pond in Frankfurt, Germany, in exchange for US bonds so that our elected representatives can keep spending even as purportedly the world’s greatest deliberative body has trouble ending deliberation before action.

In the power play between creditors and debtors, the weakening of the American hub – with India’s fiscal deficits tagging along, is going to buckle the European, Chinese and Japanese spokes if they hedge their debt with US debt, hoping for a sino-euro domination of the post-crisis world.

If the expanding and unfocused American government is a black hole in the United States, where the outcomes of government’s tax receipts are unaccountable beyond the event horizon of the tax day, it soon also become a black hole for the rest of the world. China and Europe will lose the shirts on their backs if, by 2016, United States decides not to repay its foreign obligations.  Any prospective run on America by China in 2016 will end up becoming a run on Europe and China by Wall Street, with the blessing of the US government in deep background because of its premeditation to default 4 years hence in 2012.

United States (and India) will take down the global economy to start over again to implement Obama’s economic program should he be reelected in November 2012, eliminating all threats, European and Chinese, to firmly position the two largest democracies in the lead in 2016, so as not to forsake the legacy of FDR after World War II, with its economic reenactment from 2007 to 2016.

This is not global leadership. It is abdication of domestic responsibility.


About Chandrashekar (Chandra) Tamirisa

This entry was posted in Economics, Politics, Transformations LLC, World and tagged , . Bookmark the permalink.

2 Responses to Obama’s Debt Ceiling Gambit

  1. 3m PostPolitics ‏@postpolitics
    Congress returning with long to-do list, short attention span http://wapo.st/S31QbU
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    8m Jim Cramer ‏@jimcramer
    Feels like people selling for $AIG–at least the fins. But also because fears of Fed/Germany…
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    56s 1776 @1_776
    @jimcramer @ustreasury is correct. Wall St on gov books must be sold and budget frozen to ’22. No new bonds. Buy outstanding debt back.
    Hide conversation Reply Delete Favorite
    4:06 PM – 10 Sep 12 · Details

    3m Financial Times ‏@FT
    Opinion: Bernanke risks creating a liquidity trap http://on.ft.com/Pjrg8u
    View summary Reply Retweet Favorited

    34s 1776 ‏@1_776
    @FT For USA: http://ctamirisa.com/2012/09/06/obamas-debt-ceiling-gambit/#comment-3292 … , For UK: http://ctamirisa.com/2012/09/08/the-coming-end-of-the-british-pound … @izakaminska
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    5:53 PM – 10 Sep 12 · Details

  2. Shashi TharoorVerified ‏@ShashiTharoor
    RT @1827_life: RT “@DrMSinghPMIN_FC: Dr APJ Abdul Kalam favours FDI in retail sector http://www.thehindu.com/news/national/article3824780.ece”
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    1776 @1_776
    @ShashiTharoor @1827_life @DrMSinghPMIN_FC I favor (having met Mr Ravi Chandra, IAS in his Collector’s residence in Kakinada) INR for India.
    Reply Delete Favorited
    7:22 PM – 13 Sep 12

    9m Walter Russell Mead ‏@wrmead
    Wal-Mart comes to India as state option; progressive states will use it, others can wallow in inefficiency. Link fixed http://bit.ly/R6psfI
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    7m 1776 @1_776
    @wrmead Is Walmart efficient? It does bring to India @pmoindia a new business model with which Indian corporations can compete I prefer that
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    7:36 PM – 14 Sep 12 · Details

    12s 1776 @1_776
    @wrmead Obama’s debt ceiling gambit, http://ctamirisa.com/2012/09/06/obamas-debt-ceiling-gambit/
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    7:44 PM – 14 Sep 12 · Details

    6m 1776 @1_776
    @wrmead Or is Walmart there because @pmoindia likes Clinton/Geithner @ustreasury to get ripped off later as the rest of Asia? @shashitharoor
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    7:37 PM – 14 Sep 12 · Details

    1776 @1_776
    @lagarde http://ctamirisa.com/2012/09/06/obamas-debt-ceiling-gambit/#comment-3416 … @senatebanking @ustreasury @johncornyn @markwarner @senatorbarb
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    6h 1776 @1_776
    @shashitharoor IITians as Rajan advising @pmoindia on finance/economics are problematic. India needs not FDI but capacity building @lagarde
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