It is better for Repubs to pop the bubble now, and start the collapse.
Otherwise... the collapse will come AFTER the next President is elected. There will be no saving the economy at that point - the same as now - without drastic reductions in government regulations. Almost impossible - since politicians are idiots about what rules to keep, what to get rid of.
And with the extra 2 to 4 trillion of debt that WILL accumulate between now and January 2013, there will be no way to sell Treasuries to anyone. The government will lose all ability to borrow soon.
This Federal debt bubble must be burst NOW, on the Democrats watch.
They (and the big cheerleader media) keep ranting about how they will pin it on Repubs - that is horsepucky.
Voters will want a change in fall of 2012 if we have a collapse NOW.
If voters’ lives are basically the same in fall of 2012 - THEN DEMOCRATS STAND A CHANCE OF BEING RE-ELECTED because they can lie like a rug and many will believe what they say. But if things get REAL bad between now and then, the Tea Party will sweep 2012 elections big time - AND have the mandate to hack government down to a smaller size.
Which will give ENORMOUS confidence to the markets as far as buying U.S. Treasuries. The old-school Repubs and Dems will be seen by the public as they problem that they are, as freshman Congressman who could have tons of clout can really clean house legislatively.
IMHO...
This Country Defaulted Long Ago
The final collapse of our credit expansion boom approaches. We have a choice over the next week. We could voluntarily abandon further credit expansion by voting for a Balanced Budget Amendment to the Constitution or we can raise the debt ceiling, pretend to cut spending far in the future, and allow our currency system to experience a catastrophic final collapse.
We’ll take what’s behind door #2 Johnny. The vested interests in Washington DC and Wall Street only care about power and wealth. They will never abandon credit expansion. It’s their drug. They must have it. They are addicted to it. They will keep injecting it into our system until they overdose America.
http://www.zerohedge.com/news/guest-post-country-defaulted-long-ago