So I’m thinking … about August 2nd and the Debt Ceiling … I blame …


I do not expect a deal. Not a meaningful deal. Not anything that fixes or changes the course of our national deficit or debt and the path that it is on to gobbling up 106 percent of our GDP by 2020 if the CBO is correct.

My disappointment leans heavily towards the Republicans. While no one knows the details of debt negotiations except the negotiators themselves, there are enough leaked details that I am ever so glad that I am not Speaker Boehner.

Whether Speaker Boehner likes to have a few hardy drinks, or drinks hardy, I’m sure that he is looking forward to all of this being over.

Two people are coming out of this looking good, at least in my book: President Obama and Speaker Boehner.

I want a balanced budget; defense included. Yes, a constitutional amendment as part of a grand deal would be good.

I want taxes to be more fair and always lower. But we should pay for those things that we have obligated debt towards.

Let’s eliminate debt by making smart cuts or placing ceilings on program expenses. Let’s make it so that Congress must vote to increase funding for any program that exceeds its projected expense by 5% — whether it is a social program or a defense program.

Let’s … do many things.

But we won’t.

President Obama is in some ways in a great position at the moment. No doubt every day is challenging but he is poised to come out of the Debt Ceiling negotiations looking like the man that was willing to roast his own sacred cows to move the country in the right direction.

Except if he did he would lose the support of much of his own party.

There are no worries about President Obama having to sacrifice himself for the grand deal, however. Speaker Boehner is the one that I worry for. He leads a party that wants no deal and that will try to sabotage anything that looks like a deal. My worry is that the Republicans are being held hostage by their own ideals gone amok. The challenge for Speaker Boehner is ‘who do you trust’ on the Republican side? His majority whip Eric Cantor has pretty much made it known that no deal is the best deal.

So if there is no deal and the economy does well then the Republicans will come off smart looking and will stand a good chance to take it all in 2012.

If there is no deal and the economy crumbles, stumbles or just plain bad happens to us all then Americans will come back on the Republicans with a vengeance that makes 2008 look like just a warmup.

President Obama’s biggest challenge is that he has Democrats on his side.

Speaker Boehner’s biggest challenge is that he leads a party in the midst of a hostile takeover and those that wish to acquire the party have no problem taking out those that can’t adhere to the doctrine of ‘No’.

Chances are that on August 2nd there will be no deal. Or nothing worthy of that name. This is a probability not a possibility in my estimation. While I believe that President Obama is playing at triangulation (and maybe, just maybe hoping for no deal), I will hold the Republicans responsible for anything bad that happens to America as a result.

How we got to this point is one discussion. How we could have gone forward is what we are talking about.

If the economy does not go down in absence of a deal it helps the Right. If the economy becomes even more toxic then so will the Republican Party and it will go down to hard-earned, deserved defeat.

About these ads

4 Comments

Filed under Democratic Party, Economics, National Debt

4 responses to “So I’m thinking … about August 2nd and the Debt Ceiling … I blame …

  1. If there’s no deal by 2 Aug and the US defaults on it’s debt, then we join the ranks of defaulters, North Korea, Argentina, and Greece. I wonder what pleasure Eric Cantor, Michelle Bachmann, and the others take in single-handedly bringing the United States down to this level? And I wonder even more about those GOP economists…what makes them think the Chinese and others would loan us money again?

  2. We will not default like those countries BUT what it will probably mean is that A) the Federal Reserve starts pulling in all the money that it has loaned to banks cheaply by raising the interest rates on your credit cards. Most people don’t give thought to what it means when their interest rate is ‘Prime + X%’ … prime is the rate at which the bank borrowed the money from the Federal Reserve + their markup + your credit risk/their extra profit; and B) the Federal Reserve can pay interest on foreign loans but it will minimally suck about $300-350 billion out of our system every 90 days to make that happen.

  3. George S. Harris

    I fear I tend agree with you. Despite the best intentions of President Obama and Speaker Boehner, the cliff edge loom large. As long as any consideration of tax increases is off the table, there is no wiggle room for Boehner–the Tea Party people have him painted into a corner and he is watching his party drive his new car over the cliff. President Obama has gone on record as saying he won’t sign any short term deal. The times they are interesting.

  4. George S. Harris

    I wonder now about Senator McConnell’s latest ploy. He knows full well that President Obama won’t fall for it but McConnell is so intent on removing Obama from the White House, he will resort to any measure. Underneath it all I honestly believe McConnell is an out and out racist who just can’t stand the idea of a black man in the White House. He is very careful about it but there is no doubt in my mind that this is the driving force behind his wanting Obama to fail.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s