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Friday, February 26, 2010

A Hostage Problem (2)

Secretary of State Hilary Clinton has done a very politically incorrect thing. She actually dared to mention the 800 pound pink gorilla that is sitting in the middle of the living room.

Yesterday, she described the USA's budget deficit, and our overall level of indebtedness, as a 'Security Problem'. She also pounded another nail into the coffin of former Federal Reserve Chairman Alan Greenspan's rapidly declining reputation.

While beating up on Mr. Bubblespan may be satisfying, it is a bit of a cheap show. Secretary Clinton, however, speaks serious and important truth about the deficit and our debt. That part of our national debt which is held by other, not always friendly, countries is a hostage which might well be used to coerce us into actions that we do not wish to take.

We can only hope that President Obama and the Congress are not only paying attention but that they will actually do something.

For an example of what was done by the USA to the British, who were in similar straits in 1956, see my post from February 10, 2010:

Secretary Clinton, keep up the good work.

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