Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

xchrom

(108,903 posts)
52. Whatever the Question, Americans Think Economic Pressure Is the Answer
Sun Aug 24, 2014, 08:14 AM
Aug 2014
http://go.bloomberg.com/market-now/2014/08/21/whatever-the-question-americans-think-economic-pressure-answer/

For two decades “It’s the economy, stupid,” has been the short-form gospel of American politics. The economy is what the public cares about, the thinking goes, so no smart politician is ever going to do anything that damages the economy.

Whether or not this is true in American politics, this four-word philosophy doesn’t export well. It’s given Americans a persistently optimistic idea of the powers of economic pressure. Whatever the issue at stake, Americans tend to think that other countries will follow the U.S. model and act in their economic self-interest.

The difficulty comes when the public in those countries is convinced that a higher value is at stake. That’s what’s going on now in both the Argentine debt crisis and the Russian standoff over Ukraine’s separatist movement. In the first, investors have assumed that if not paying off bondholders is painful enough for Argentina, then Cristina Kirchner’s government is bound to come to some kind of accommodation. In the second, U.S. policy makers assume that if they can cause enough pain to the Russian financial system, Vladimir Putin will decide that backing the separatist movement is just not worth it.

Unfortunately, in both crises foreign leaders have made standing up to economic pressure a point of national pride. Whether or not that’s fair — and the situations are absolutely not equivalent otherwise — they have their respective populaces in their corner. In Argentina, the assumption that economic pressure will force a solution is already costing some bondholders dearly.

Recommendations

0 members have recommended this reply (displayed in chronological order):

NO BANK FAILURE AS OF 7 PM EDT Demeter Aug 2014 #1
Charlie Wilson's War bonus clip - Tom Hanks Who is Charlie Wilson? Demeter Aug 2014 #2
Art vs. Life (Clips from the film) Demeter Aug 2014 #3
Soviet-Afghan war and Retirement Demeter Aug 2014 #4
Death of a Bad, Bad Boy Demeter Aug 2014 #5
The trailer Demeter Aug 2014 #13
I'll agree with Calvin on this Demeter Aug 2014 #6
And that's why I seldom venture into the wider DU Demeter Aug 2014 #14
It's Time To Kill The Third Party Doctrine And Go Back To Respecting Privacy Demeter Aug 2014 #7
Engineering Failed States: The Strategy of Global Corporate Imperialism Demeter Aug 2014 #8
The rise of the military’s secret military Demeter Aug 2014 #9
Blame Employers, Not Workers, for Any Skills Gap, Economist Says Demeter Aug 2014 #10
"simply an effort to secure policy changes that lower labor costs.” antigop Aug 2014 #39
So I posted a quip which inadvertently showed DU judges fail in knowledge of current events... kickysnana Aug 2014 #11
Lack of sense of humor and knowledge of current events Demeter Aug 2014 #12
Couldn't make this one up if I tried. MattSh Aug 2014 #18
It's like living in an insane asylum these days Demeter Aug 2014 #21
Please don't let them stop you from posting cause this place is unique and powerful. kickysnana Aug 2014 #34
Ziggy Crewleader Aug 2014 #15
Good find! Demeter Aug 2014 #16
Austerity Has Made Europe’s Depression Longer Than In The 1930s Demeter Aug 2014 #17
Musical Interlude MattSh Aug 2014 #19
That was an interesting view Demeter Aug 2014 #20
You might be thinking a bit too much into it... MattSh Aug 2014 #41
Joder. Ghost Dog Aug 2014 #38
Obama Is Begging Congress To Save This One Crucial Bank xchrom Aug 2014 #22
THOSE COMPANIES COULD USE THE HOARD OF CASH THEY ARE SITTING ON Demeter Aug 2014 #25
This Chart From Mario Draghi Reveals The Slow-Motion Catastrophe That Is The Eurozone xchrom Aug 2014 #23
Point of Order! The US numbers are lies, as has been reported here regularly Demeter Aug 2014 #26
For the female of the species is more deadly than the male--Kipling: JOANNE KING HERRING Demeter Aug 2014 #24
Podcast Interview with Herring Demeter Aug 2014 #27
She has her own website... Demeter Aug 2014 #28
And lots of fan boys among the 1% Demeter Aug 2014 #29
Boys Like Girls - Two Is Better Than One Demeter Aug 2014 #30
Two Steps From Hell - Archangel Demeter Aug 2014 #31
Two Steps from Hell - Black Blade Demeter Aug 2014 #35
41 Percent of American Workers Let Paid Vacation Days Go to Waste xchrom Aug 2014 #32
How Joanne Herring won Charlie Wilson's War By Philip Sherwell Demeter Aug 2014 #33
Why did the USSR invade Afghanistan? Demeter Aug 2014 #36
Well, if it's that kind of twosome... Ghost Dog Aug 2014 #37
Sacramento federal court jury acquits 4 in local mortgage fraud case DemReadingDU Aug 2014 #40
Way to go, Bill Black! Truth WILL Out! Demeter Aug 2014 #42
The War Breaks The Spine of Ukraine’s Economy MattSh Aug 2014 #43
'Buy firewood & coal': MP warns Ukrainians after US, EU get access to national gas pipes MattSh Aug 2014 #44
Well, if we had to find a bad boy or girl behind this, Victoria Nuland and husband Demeter Aug 2014 #46
Putin Says The Petrodollar Must Die, "The Dollar Monopoly In Energy Trade Is Damaging Russia's Econo MattSh Aug 2014 #45
Implication: the sudden crash in oil futures to squeeze the Russian bear? Demeter Aug 2014 #47
Goldman Sachs Partners’ Ownership at Lowest Since 2010 xchrom Aug 2014 #48
Wisconsin’s Walker Routed Cash to Outside Group xchrom Aug 2014 #49
Maybe this will destroy the MONEY= FREE SPEECH argument Demeter Aug 2014 #57
Home Flipping Wanes as U.S. Investors Find Fewer Bargains xchrom Aug 2014 #50
Too Much Corn With Nowhere to Go as U.S. Sees Record Crop xchrom Aug 2014 #51
Whatever the Question, Americans Think Economic Pressure Is the Answer xchrom Aug 2014 #52
Considering how America hasn't worked in its OWN self-interest for 30+ years Demeter Aug 2014 #58
Europe Refinery Profits Seen Lowest Since ’11 on Imports xchrom Aug 2014 #53
Unemployed Activists At Jackson Hole Hope Their Charts Convince Central Bankers To Hold Off On Rate xchrom Aug 2014 #54
Fed chief Yellen says slack remains in US jobs market xchrom Aug 2014 #55
US Is One Of Last Developed Countries Where It Can Still Take Days For Money To Show Up In xchrom Aug 2014 #56
Mostly because our Masters want to be able to get notified and get a warrant n/t kickysnana Aug 2014 #59
So, We've Met the Bad Boy, We've Met the Femme Fatale; What Was the Game? Demeter Aug 2014 #60
The CIA's "Operation Cyclone" - Stirring The Hornet's Nest Of Islamic Unrest Demeter Aug 2014 #61
America's spies paid and trained their nation's worst enemies, reveals Andrew Marshall in Washington Demeter Aug 2014 #62
IN CONCLUSION: Demeter Aug 2014 #63
WHICH BRINGS US TO TODAY: The Ukraine crisis: Operation Cyclone redux By Joseph Diaferia Demeter Aug 2014 #64
Here Endeth Today's Lesson Demeter Aug 2014 #65
the more I read here, the sadder I get magical thyme Aug 2014 #66
It's maddening, that this country is in the power of greedy idiots Demeter Aug 2014 #67
What if the electric power grid is taken offline? DemReadingDU Aug 2014 #68
Anonymous? Demeter Aug 2014 #69
Latest Discussions»Issue Forums»Economy»Weekend Economists Make W...»Reply #52