Passing Healthcare is Suicidal

Douglas Holtz-Eakin, an advisor to John McCain in the last Presidential Campaign, raises this critical issue in a Wall Street Journal opinion piece:

“At what point, some financial analysts ask, do rating agencies downgrade the United States? When do lenders price additional risk to federal borrowing, leading to a damaging spike in interest rates? How quickly will international investors flee the dollar for a new reserve currency? And how will the resulting higher interest rates, diminished dollar, higher inflation, and economic distress manifest itself? Given the president’s recent reception in China—friendly but fruitless—these answers may come sooner than any of us would like.”

We probably have already passed the “tipping point” regarding his concerns. Aggressive economic policy changes approximately 180 degrees different from what is currently in place might not be enough to avoid these issues. Passing the Healthcare plan will absolutely close the door to any escape. This action will be seen to be suicidal both to politicans who vote for it and the country. It would ensure Holtz-Eakin’s fears and much worse.

Here is an article in the Financial Times expressing concerns coming from Europe.