The Polish parliament, pictured here in the 18th century, was brought down by a proto-filibuster known as the "liberum veto"
The United States is beginning to resemble 17th century Poland. On 2nd August, if no deal is reached, the US government will reach its debt limit. It will not be allowed to borrow from financial markets still utterly enchanted by the opportunity to toss trillions its way. Social security cheques might not get mailed, federal workers might not get paid, maturing bonds could default. It would be an own goal of disastrous proportions. Financial markets regard US debt as the safest possible, the ultimate risk-free asset, the base line upon which all other bonds are priced. If the US threatens default, the reaction will be calamitous: the world economy will be battered. It would make Lehman Brothers and Greece look like momentary blips.
And yet, even though the Democratic
observer
Paul Krugman made this point (about Poland’s unanimity rule) on Feb. 10, 2010 in his NY Times column. See http://krugman.blogs.nytimes.com/2010/02/05/the-senate-becomes-a-polish-joke/
jez
Well the chinese are the biggest bond holder so they would have first rights before canada and mexico and anyone else…lol.
I’m not sure how many bonds the author holds…but he does say at the end of the article that it is “his country” so he must hold some gov bonds if he is claiming ownership rights….lol. Best of luck!