Vienna 05/14/2023
Entire blog as a free PDF eBook.
When major banks in the US went bankrupt, the President proclaimed the solvency of all monies deposited in banks. As a result, the market calmed down, and only a few people queued up at the checkout to withdraw their savings. The very concept of a banking crisis was almost forgotten after a series of new political and social events. Who really guarantees the solvency of US banks? For now, the word of the President, commonly known as Sleepy Joe, is a guarantee.
If the two leading US political parties, Democrats and Republicans, do not agree on raising the US debt ceiling by the end of May, the US faces financial insolvency in June, i.e. bankruptcy. The US government will not be able to raise new loans to pay the interest on the huge debt accumulated over the years, mainly due to the numerous wartime adventures of successive presidents. And since Joe Biden is, in fact, asleep — he only spoke to the Republican representative on the matter once, on Feb. 1, and said he couldn’t come to an agreement — the assets deposited with the banks are apparently only guaranteed on the basis of the president’s word .
The debt limit was introduced in the USA in 1914 in connection with the construction of the Panama Canal. This was to be a one-time departure from the debt avoidance policy of the time, which was unpopular in US society. Today, the United States is the world’s largest debtor, with China and Japan as the main creditors. You’re probably thinking: what do we care about the problems of Japanese or Chinese investors – let them worry about their poorly invested money. It’s not just her problem. The US bankruptcy will not only affect investors. African cobalt workers, cotton plantation workers and basically everyone on our planet will feel it. The economic recession caused by the inevitable collapse of the dollar, euro and other currencies will leave no buyers for cobalt or cotton. Of course, these are only selected examples, the recession will simply hit all areas of the economy.
I can’t predict the future, but I don’t think the Democrats will get along with the Republicans because of a lack of goodwill on either side for even the smallest compromise. My sympathy goes out to the Republicans, even though I know that this is a prelude to the US election campaign. Also, Republicans are trying to hurt Democrats by submitting proposals to resolve the crisis. However, I support the Trump Republicans because this debt situation was created by the pro-war policies of Obama and Biden and war is unacceptable to me.
However, don’t expect me to wear a red tie to support Donald Trump in his political struggle abroad. My aversion to such a prop is too great. When I was attending a technical school in the People’s Republic of Poland in the first half of the 1970s, Wednesday was proclaimed as Red Tie Day. At that time I had no idea about the meaning of such a symbol and one Wednesday after school I walked the streets of Wroclaw with such a tie. I was surprised by the reaction of several older boys I didn’t know who just laughed at the red symbol hanging around my neck. Today they would be called right-wing Nazi radicals. They were just clear-thinking young people.
Author of the article: Marek Wojcik