First, this is a must-read on how a GOP economic strategy has crippled the Democrats for decades. How the GOP used a two Santa Clauses tactic to con America for nearly 40 years
Now, check out this story about how Russia is dumping its holdings of U.S. debt (“Treasuries” — T-Bills, T-Notes, T-Bonds, and TIPS). There are various theories as to why Russia is doing it, ranging from the benign (restructuring their portfolio) to the retaliatory (because of U.S. sanctions). But the Bitemaster sees something more sinister.
When there are more buyers of debt instruments, the lender can lower the interest rate it offers. When Russia gets out of the market, there are fewer buyers and the interest rate the U.S.Treasury has to pay goes up.
Which is just what has happened. So far, the cost to the U.S. is tiny: only a couple billion dollars. But if other countries follow, it could have long-term effects on the U.S. economy. And that is what I think is the plan behind Russia’s move.
And that could move voters towards the Democrats — except that the Democrats will be totally hamstrung by the gigantic national debt they would inherit from the Republicans.
Win or lose, the Dems are bleeped.