“It would be myopic in the extreme to view the flow of oil to the United States as a legitimate national security issue but to view the flow of foreign capital into Treasury securities as a matter of no particular concern.” — Bruce Bartlett, an economist who worked in George H.W. Bush’s White House
[...] If the United States loses its ability to lead by economic example, that mantle could be taken up by its largest creditor nation and most credible military rival, China. And lesser powers with bones to pick with it—Iran, North Korea, Venezuela—could be emboldened. “Since the financial crisis, authoritarians and state capitalists have lost their respect for the United States,” writes Sebastian Mallaby, an economic research fellow at the Council on Foreign Relations. “Market capitalism is in disrepute; democracy is discredited. The budget fight is only deepening such feelings.”
[...] There’s a corollary to that argument. If forcing the debt crisis beyond August 2 erodes the United States’ military preparedness and diplomatic influence, the politicians most responsible for the gridlock—staunch conservatives who likely consider themselves defense hawks—might ultimately be seen as unpatriotic. As Balkin explains, “The Republican strategy of making America strong by bringing the American government to its knees is self-defeating.”
Read more: Mother Jones
The Republican strategy? It’s more along the lines of 51 Republican lawmakers signed a pledge to the Teaparty to not compromise, ever, with Democrats or the President. The strategy is that Republican lawmakers have said they want to make Obama a one-term president and this seems like as good a way as any. Any Republican strategy is being fueled by the rich and powerful from the Koch-funded Teaparty base up through DC itself, to ensure that they will continue to receive all the tax breaks, tax cuts, and tax loopholes they can. Would they want to bring the U.S. to its knees for personal / corporate financial gain? Haven’t they been doing exactly that for at least three decades already?