I opened my wallet the other day after dinner at a local restaurant and alas, there was no cash on hand to pay for the meal.
The bill was on the table, the food was resting comfortably in our stomachs and the waitress kept glancing suspiciously in our direction.
We ordered another cup of coffee and decided to wait it out.
The United States government found itself in a similar situation last week only the stakes were much higher. Their dinner party has been going on for decades with borrowed money and now the bill collectors, mainly the Chinese, are expecting to be paid with interest.
When our American friends opened their treasury to settle the account they found the cash cupboard was bare. Their response was to stall as long as they could, behave irresponsibly and lead the world economy to the brink of ruin, if not over that brink and into the abyss.
The world economy was not amused and has responded accordingly. America’s international credit rating has been downgraded along with the value of the American dollar and her reputation as a safe haven investment is in question.
They should have ordered a less expensive meal, especially if they were having money problems.
We slowly sipped our free refills at the restaurant that night as we discussed our payment options. We had debit and credit cards available and the resources to pay. We perused the dessert menu while we decided on a course of action.
We didn’t really need the added expense or calories of a fancy dessert. Also, to keep costs down, we might choose less expensive restaurants in the future and order cheaper meals. Fish and chips or a tasty burger can also be satisfying meals and at a reasonable price.
In the end we were able to secure the necessary funds. Before we left the restaurant we paid the bill, including a tip for the waitress and we were invited to please return soon. We probably will. We’ve got that kind of dough.
Financial crisis averted. No hard feelings.
Not so for the faltering U.S. economy. The world watched on as pompous American politicians, yesterday’s men mostly, performed their childish display of long standing grudge matches, one-upmanship and finger wagging.
No solutions were found. No responsible decisions were made.
They did manage to get America’s bills paid, just barely on time and quite reluctantly. In the process they clearly showcased their dysfunctional political system and were publicly scolded by the world financial community for their ineffective response.
For Canadians living in Thunder Bay it is very hard to put this in perspective. First of all the numbers are huge. Millions of dollars is just chump change now. Even billions add up quickly until one day you’re looking at serious money - trillions or quadrillions or even quintillions.
I forgot to pay my phone bill last month. This month TBayTel sent me another bill and with arrears I owed close to $100. I had the money and I paid the bill without any further delay. I use the phone so I pay the bill.
Today the U.S. faces a $14.2 trillion debt. The interest on that loan amounts to well over $400 billion a year. Even so, they have the resources and available credit to meet their financial obligations. They can well afford the payments.
But for some reason America’s political masters did not pay their bills without delay. They chose instead to hold their country and the rest of the world hostage in a bizarre display of political grandstanding and brinksmanship. It was an embarrassing spectacle and made the situation much worse.
And now the world waits with baited breath for the economic aftershocks. Here in Canada we anxiously wait to see what our biggest trading partner does next.
Hang on to your portfolios, stash a few bucks for a rainy day and prepare for a much leaner menu.
After we settled our bill in the restaurant that evening we went for a relaxing stroll through the International Friendship Garden and then stopped for ice cream on the way home.
Fortunately I had a sawbuck tucked away I was saving for just such a financial emergency.
It was a beautiful evening in Thunder Bay. A warm breeze was blowing from the southwest. At times like that it’s hard to believe we’re on the verge of a global economic collapse.
High finance boggles my mind.
The bill was on the table, the food was resting comfortably in our stomachs and the waitress kept glancing suspiciously in our direction.
We ordered another cup of coffee and decided to wait it out.
The United States government found itself in a similar situation last week only the stakes were much higher. Their dinner party has been going on for decades with borrowed money and now the bill collectors, mainly the Chinese, are expecting to be paid with interest.
When our American friends opened their treasury to settle the account they found the cash cupboard was bare. Their response was to stall as long as they could, behave irresponsibly and lead the world economy to the brink of ruin, if not over that brink and into the abyss.
The world economy was not amused and has responded accordingly. America’s international credit rating has been downgraded along with the value of the American dollar and her reputation as a safe haven investment is in question.
They should have ordered a less expensive meal, especially if they were having money problems.
We slowly sipped our free refills at the restaurant that night as we discussed our payment options. We had debit and credit cards available and the resources to pay. We perused the dessert menu while we decided on a course of action.
We didn’t really need the added expense or calories of a fancy dessert. Also, to keep costs down, we might choose less expensive restaurants in the future and order cheaper meals. Fish and chips or a tasty burger can also be satisfying meals and at a reasonable price.
In the end we were able to secure the necessary funds. Before we left the restaurant we paid the bill, including a tip for the waitress and we were invited to please return soon. We probably will. We’ve got that kind of dough.
Financial crisis averted. No hard feelings.
Not so for the faltering U.S. economy. The world watched on as pompous American politicians, yesterday’s men mostly, performed their childish display of long standing grudge matches, one-upmanship and finger wagging.
No solutions were found. No responsible decisions were made.
They did manage to get America’s bills paid, just barely on time and quite reluctantly. In the process they clearly showcased their dysfunctional political system and were publicly scolded by the world financial community for their ineffective response.
For Canadians living in Thunder Bay it is very hard to put this in perspective. First of all the numbers are huge. Millions of dollars is just chump change now. Even billions add up quickly until one day you’re looking at serious money - trillions or quadrillions or even quintillions.
I forgot to pay my phone bill last month. This month TBayTel sent me another bill and with arrears I owed close to $100. I had the money and I paid the bill without any further delay. I use the phone so I pay the bill.
Today the U.S. faces a $14.2 trillion debt. The interest on that loan amounts to well over $400 billion a year. Even so, they have the resources and available credit to meet their financial obligations. They can well afford the payments.
But for some reason America’s political masters did not pay their bills without delay. They chose instead to hold their country and the rest of the world hostage in a bizarre display of political grandstanding and brinksmanship. It was an embarrassing spectacle and made the situation much worse.
And now the world waits with baited breath for the economic aftershocks. Here in Canada we anxiously wait to see what our biggest trading partner does next.
Hang on to your portfolios, stash a few bucks for a rainy day and prepare for a much leaner menu.
After we settled our bill in the restaurant that evening we went for a relaxing stroll through the International Friendship Garden and then stopped for ice cream on the way home.
Fortunately I had a sawbuck tucked away I was saving for just such a financial emergency.
It was a beautiful evening in Thunder Bay. A warm breeze was blowing from the southwest. At times like that it’s hard to believe we’re on the verge of a global economic collapse.
High finance boggles my mind.
