November 23, 2004

Dollar Watch Compilation Thread, or, How a Dollar Crisis Might Be Used to Dismantle Our Social Safety Net

Originally from The Agonist, reBlogged by ts

The Agonist - If Asian Central Bankers stop funding our deficits the United States Government will then have a choice to make: choose between funding our military-industrial establishment or shoring up our social safety net.

Update: A reader writes in to tell me that this is the exact same scenario that Krugman outlines in his book, The Great Unraveling.

Update 2: Kevin Drum has some thoughts on how Bush will change Social Security. They’re somewhat germane and worth a read. Still, no one is talking about how a dollar crisis might lead up to a change in Social Security. But we’ll keep watching.

Update 3: Morgan Stanley’s Roach says 1 in 10 chance we will avoid economic “Armageddon.”

More after the jump.