Ezra still seems confused

Earlier today, I [Ezra]spoke with David Beers, director of Standard Poor’s sovereign debt department. He explained that it wasn’t economic factors that had put America’s credit rating at risk, nor world events. It was credit-rating agency’s increasing fears that our political system was no longer up to the challenges that face it. “What we’re saying now,” said Beers, “is we question whether despite all the discussions and intense negotiations, if they can’t reach this agreement, will they be able to reach it after the election?”WA Post

The problem, Ezra, is that we no longer have enough middle class to guarantee an additional $4T of debt. It is the middle class that covers the debt service, and ratings agencies look for indications that a real middle class intends to pay for all the rhetoric liberal economist spout. There is no middle class willing to cover the costs. Minnesota middle class chose to go fishing rather than fund government. California spends most of our time in court trying to force middle class payments. Illinois citizens have to cover the $40 billion owed by the state, not counting their share of the $14 T.

98% of our jobs are in the non-tradeable sector, China has not yet indicated that it intends to import Medicare services from the American government.
People like Dean Baker, Ezra Klein, Mark Thoma who do not realize that sheriffs, guns, violence and the threat of violence are required to collect debt service.