USA Default and the Tea Party!

The US House of Representatives has passed by 269 votes to 161 in a desperate deal to avoid a debt default.

President Barack Obama, who lectured Europe on why spending and investment is the best cure for a recession, was left contemplating the consequences of an emergency debt-ceiling deal that will take more than $2 trillion out of a bankrupt US economy over the next 10 years. It raises the debt limit by up to $2.4tn  from $14.3tn, and makes savings of at least $2.1tn in 10 years.

The bill is expected to be approved by the Senate and signed into law by President Barack Obama .

These huge sacrifices, to satisfy demands largely driven by the ultra right Tea Party segment of the Republicans, was approved in the House of Representatives. It will produce deep spending cuts.To the disgust of many in his own party, Mr Obama seemingly caved in to these demands.

It surely reveals to the rest of the world, just how bankrupt the USA is, as the ‘leader of the World Wide’ economic system. The implications for the rest of us are enormous.