Obama Tweets Into a Brick Wall

Two days ago, in an effort to encourage a resolution of the US debt crisis, US President Barack Obama tweeted out to his followers, "ask them (Republican Congressmen) to support a bipartisan solution to the debt crisis." Using an #compromise hashtag, Obama hoped to energize Twitter-handy Americans to send out a message of cooperation to their congressmen hopelessly in deadlock over the debt crisis.

The result? Obama lost over 36,000 followers. Who knew politics could be so divisive...

Of Obama's more than 9 million followers I suppose this is merely a drop in the bucket, but if I lost 36,000 of anything I would still analyze why it happened and try to avoid it from happening again. But more than anything, I feel this latest debacle south of the border is more proof of the divide between Americans.

As I've learned that the US has raised its debt limit 78 times since 1960, I had to wonder why it's a big deal. By borrowing more money, the US would secure its AAA bond rating, but, of course, the decision would raise its debt higher. Since 2002, the debt limit has gone from $6.4 trillion to what it is now (page 14). To be fair, $14 trillion dollars is an unfathomable amount of money compared to the speck in the universe of money I will ever make in my lifetime. But being militarily involved overseas fighting two wars since Sept. 11 has accounted for nearly $1.3 trillion of US debt alone. That's a good chunk of change right there, but not the only issue the US has been forced to deal with in recent years. The mortgage crisis gave the US economy a permanent bruise, entitlements are on the rise as baby-boomers retire, and no one can foresee a complete US pull from the middle east any time soon.

The last thing President Obama wants to do is borrow more money. This crisis is political brinksmanship to make Obama look like he can't get anything done. As electioneering for the 2012 presidential election is already sputtering to life (the election is only 15 months away after all), the Republicans are simply looking to kick more sand in Obama's face.

It's a bitter pill to swallow, and they do it simply because they can.

As of this morning, there appears to be progress. There's only two days left to agree on a plan, but there had better be a solution before the stock markets in Asia open for business a few hours from now and especially before North American stock markets open on Monday morning. If the stock sell-offs late last week were any indication, beware the Ides of August could become a mantra.