Working to Undermine the U.S. Economy

Working  to Undermine the U.S. Economy

Eric Cantor is the proud leader of the Tea Party extremists, those Members of Congress who supported defaulting on America’s debt ceiling. Until this Congress, the House had followed the rule that when the House formally approves the budget, it thereby raises the debt ceiling to cover the approved budget. This is the logical way to proceed because it would be hypocritical to pass a large budget if you are not also willing to adjust the debt to cover it.

Eric Cantor and the Tea Party destroyed ongoing negotiations between Speaker Boehner and the President. Eric Cantor shut down debt ceiling negotiations. He and the Tea Party extremists pushed the U.S.Government to the brink of default.

So alarming was this irresponsible action that the well-known financial rating company Standard and Poor’s downgraded U.S. Treasury debt for the first time. The repercussions were large. By causing American bonds to be downgraded, Cantor lowered our stature in the world.

Why did Eric Cantor do this? Was there personal benefit to him? The answer is yes because part of his financial portfolio consists of Treasury bonds. And Cantor bet on these bonds to shrink—a move known as shorting. Thus the Majority Leader of Congress is betting against his own country. Talk about being the opposite of a patriot! Cantor sabotaged debt ceiling negotiations for several reasons but one of these was personal financial gain.

So, what is Cantor’s reply? He offers the excuse that these bonds were just a small part of his portfolio.