Will the Republicans sacrifice the American economy for potential electoral glory?

The Republican party is hanging out with some pretty interesting company these days, treading the same economic line as that of Germany and China.

A trio featuring a number of diverse agendas, but all seemingly seeking to reign in the Federal Reserve as it continues to try to stimulate the American economy and create jobs to bring down the current high levels of unemployment of 10 per cent and more across the USA.

Paul Krugman's article in the New York Times from Friday provides some fascinating reading, all leading up to a theme of suggestion from the Nobel prize winning economist that the Republicans, recently emboldened by their gains in the House of Representatives and the Senate, may not actually wish to see an improving economic picture over the lead up to the 2012 Presidential election year.

By their actions and similar inclinations as those of the Germans and the Chinese, Krugman has christened them with a new title, something that the slogan happy Republicans may not particularly like, tethered with the Germans and Chinese as part of an "Axis of Depression".

He followed up that thesis with a review of the Republican agenda on Sunday, which paints the Republicans as an obstructionist group, determined to sideswipe the government of the day in the quest for   political gain and on the cusp of perhaps a complete political breakdown with serious consequences for the Americans that will be caught up in the fall out.

The current attacks by Republicans on Federal Reserve policies have even enticed Fed Chairman Ben Bernanke to make a rather unusual political statement, outlining his concerns over the growing criticism from Republicans, tying them into that same group that Krugman cobbled together for his articles of the weekend. 

While Republicans may dismiss Krugman's offerings as more Liberal propaganda, the prospect of Republican efforts to erect roadblocks to President Obama's agenda at every turn seems to indeed propose for two years of political chaos at a most dangerous time frame for the US.

And as Canadians have learned over the years, political fighting in the US and the subsequent problems that it may bring to their economy have a funny way of impacting on their neighbours to the north, making for the events of Washington these days well worth watching from our side of the border.