If the middle of the US body politic hadn't kicked the debt limit can down the road and Obama and Geithner had pulled the trigger on their plan to stick holders of US Treasury obligations -- three quarters of whom are US citizens -- by defaulting on interest payments, not paying soldiers' families, and not mailing Social Security checks to Grannies everywhere, then the media would surely be telling us at this very moment that the Tea Party Terrorists had caused today's 500 point drop in the Dow Jones Industrial Average.
Instead they are saying that the cause was namby pamby investor uncertainty over the Western Democracies' ability to grapple with the challenges of financial crises around every corner. The bond vigilantes have been out in force recently selling every Italian and Spanish bond anyone would lend to them. Selling Europe short is the thing to do these days.
No mention of the biggest Western Democracy's can kicking to be heard.
Panic-driven flight to quality began yesterday, one day after the Senate voted for and Obama signed the agreed upon can kicking. Again today, stocks were dumped and Treasuries were in great demand causing interest rates to drop like a rock.
Go figure. Low-quality debt is better than no-quality debt, I guess.
