The current clown show in Washington is empowered by the lack of a true sense of urgency.
The power the U.S. possesses with the Dollar allows it to export debt, inflation, and almost any other economic malady to the rest of the world, while reaping none of the whirlwind.
It is a unique position, reinforced by the power of the U.S. consumer, which is about 22% of all global GDP.
This means that the rest of the world must prop up the U.S. economy – with all of its problems- so that it can continue to do business with it.
The U.S. has been able to run up these huge deficits because investors around the world still stand in line to buy U.S. treasuries and finance the national debt with expected returns at less than 2%.
When this begins to change, it will be the moment for the U.S. to reign in its profligate spending and start getting serious.
However, there is nothing on the horizon to indicate that such a change is coming.
In fact, despite all of the fallout from the 2008 financial crisis, investors have doubled-down and increased their buying of US Treasuries, whilst interest rates- and their returns- have fallen precipitously.
The best advice is to tune out the circus and enjoy the benefits of empire, at least for a little while more…