BrianV:
I'm also interested to hear from Americans about the recent debacle about their economy. To us it looked like two parties trying to score political points off each other without even bothering to think what's best for the country? Is that the view over there?
Yes, that's a pretty good "short answer". As always, the "long answer" is more complicated and faceted.
First, the need to do something about the USA debt is nothing new. The same folks who ballooned our debt over the 8 years of the previous administration are now trying to masquerade as our saviors by recasting themselves as financial conservatives.
The recent "debt crisis" was a "manufactured in Washington" political event that never needed to happen. It will be seen by history as, if not an economic disaster, at least an economic setback that the world didn't need in these uncertain times.
Myself, I blame the American voter who have allowed themselves to be led by transparently biased "journalism" such as that seen on the Rupert Murdoch-owned Fox news, and by the primary-school-level slogans they seem to be so great at crafting. (Remember "government death panels"?)
In the case of our recently downgraded credit rating, our voters recently put into power demagogs who loudly proclaim their willingness to default on debt payments, and who have demonstrated their power to do exactly that. In this political climate, who can blame the financial community for losing faith in the safety of USA debt?
BrianV:
Maybe our democracies have a fundamental weakness and that is that politicians are always looking to the next election instead of making the decisions that are right for the country in the long term.
Democracy will always be a messy and inefficient process. (My graduate work is in government, so I've made more than a casual study of this.) Other forms of government can be far more efficient, but none of those can be trusted to remain responsive to the populace.
(
Spanking is the answer!
Does anybody remember the question?)
Guy