Moody’s Says U.S. Needs To Articulate Debt Plan

The analyst said the United States appears to have “no plan” to deal with its fiscal outlook and that much will depend on the domestic political reaction to recommendations by President Barack Obama’s fiscal responsibility commission in December.

I believe the meme of the US debt problem is now in place as enough mainstream commentators/companies are talking about the dangers of our debt. Now it comes down to game theory (the prisoner’s dilemma to be specific). It is like a old Western shoot-out, but with numerous people all standing in a circle… each with an itchy trigger finger… no one wants to be responsible for starting the shootout, but they all realize that usually the first one to draw will win. Holders of US government debt have their finger on the ‘sell key’… just waiting… it is just a matter of time until someone blinks. News of China quietly unloading holdings, an under-bid bond auction, the dollar index moving below 70… anyone of these could cause someone to blink.


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