Republicans are operating as though they will completely control the mid-term elections as Vladimir Putin does in Russia. How else can you explain Republicans total disregard for U.S. citizens & the world economy?

So are we facing a Liz Truss moment in America?

“In other words, until now markets have believed that the U.S. has the resources to deal with its deficit whenever it musters the political will. And bond buyers have been willing to assume that we are a serious country that will eventually get its fiscal house in order.

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But markets’ patience with American dysfunction isn’t unlimited. Consider how quickly things went wrong for the UK. In 2022 Liz Truss, Britain’s Prime Minister, announced a “mini-budget” that involved cutting taxes and blowing up the budget deficit. Markets freaked out: long-term interest rates soared and the pound plunged. The tabloid The Daily Star famously set up a webcam showing a photo of Truss next to a head of iceberg lettuce wearing a wig, and asked which would last longer.

The lettuce won, because Britain’s parliamentary system allowed it to get rid of a disastrous leader. We, unfortunately, can’t.

So are we facing a Liz Truss moment in America? Long-term interest rates are close to their highest level in many years…

These market moves in bonds and swaps show that the Trump administration is losing credibility, just as the Truss government did. Professional investors are ceasing to treat us as a serious country.

Instead, they’re starting to treat us like an emerging market, where budget deficits are a sign that things are spinning out of control. This irresponsible bill is already being seen as a signal to sell America, leading to higher interest rates, increasing odds of a recession, and a weaker dollar. And the example of Britain shows that things could spiral out of control faster than almost anyone imagines.”

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A Liz Truss Moment for America?

Financial indicators are flashing yellow

Paul Krugman