peter morici is an economist and joins us right now.es the debt downgrade mean for the economy? >> short-term, not a lot. it doesn't change objective conditions on the ground. united states is not in debt crisis today, there's no question we can pay our bills and occasional budget standoffs don't mean much. the federal government was always in a position to pay the interest on the debt and roll it over even if we hit the ceiling. but something democrats invented. longer term are going through physical stress. the debt is growing at a pace for not in the distant future, we will have to borrow so much even if we balance our budget from what we take in and spend, the service would grow more rapidly within the economy. thus the situation. united states can print money to pay its debt but if it does, so bonds it becomes inflationary. then we are behind because instead of defaulting by not paying on the bonds, we default by the republic method, inflate our way out of the value of the debt and what happens? where do people go with her cash? ar

joining me from washinton is professor peter morici from the university of maryland.r being with us. these talks will get under way, there is a lot for them to talk about and we have touched on some of the key issues that they are hoping to have consensus on but there is still a lot of areas where they absolutely disagree, and there?— disagree, and there? absolutely. china is building _ disagree, and there? absolutely. china is building up _ disagree, and there? absolutely. china is building up a _ disagree, and there? absolutely. china is building up a massive - china is building up a massive presence in the pacific and the united states feels threatened, as does our allies, and we feel the export of chips and the development of an advanced chip industry in china as threatening. so the export controls. at the same time, the administration has been sending signals to american business about the consequences of investing in china. this notion either then going over there and saying that we want to continue the relationship is very conflicting and ambiguous. to give you

peter morici is here with his analysis. ♪.ding masked by massive credit card debt? think about this on one hand economists insist the american consumer are fine. oh, man, myriad of reasons proof we're okay. on other hand retail remembers saying something completely different. look at cox automotive, they started will stop reporting weekly delinquencies. this may have something to do with it. last time they mentioned it was up 21% year-over-year 5% month over month. delinquencies on the rise in automotive space. credit cards, macy's, oh, my goodness. we knew there would be increase in delinquencies but they got a lot more than they bargained for. it accelerated especially in june and july. it is not just macy's's, folks. look at this. this is what you call parabolic spike. i'm not talking about amount of credit card delinquencies compared to this, compared to that, how fast it is running this is the highest spike since 1992. macy's went on to talk about the acute pressure on households at $75,000 and under. get this, you know m

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