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Paul O’Neill Calls Opponents of Raising Debt Ceiling ‘Terrorists’

Former US Treasury Secretary Paul O’Neill calls the people advocating brinkmanship on the debt ceiling deficit "terrorists". He is 100% right. As I said during the government shutdown debate:

There is the possibility if this gets out of hand and spooks business, that it crimps economic growth, nascent job growth, and that this leads to a double dip recession and a debt deflation. Who gets blamed for that? I think the whole thing shows a recklessness in American politics that should be rewarded with a sovereign debt ratings downgrade. This is the sort of irresponsible brinkmanship that you don’t see in other developed countries – even Belgium. For me, it is a clear sign of the decay of American governance and the political system.

This is no way to run a country. With the whole Trump birther circus and the constant threats of defaulting on its debt, the United States looks more and more like a banana republic every day. If S&P wants a reason to downgrade the US sovereign debt rating, this is it.

Video below.

About 

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.