donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
We are getting down to the wire here so what do you think will happen? I don't want to provoke a lot of rants against one side or the other but I am curious about how people think this will unwind. I will start.
It seems like the GOP has gotten into a terrible bind by taking Grover Norquist too seriously. When the President doubled down with his $4T proposal, they could have taken the money and run and probably negotiated some pretty painless loophole closing concessions but "the Pledge" is an impenetrable obstacle so no deal. The impression is settling in that a failure to raise the limit would actually be catastrophic so I think the GOP will have to blink.
1) Therefore my number one prediction (70%) is that we will see some sort of McConnell approach that gives the President full authority to raise the limit but preserves the right for the GOP to vote against what they just authorized him to do.
On the other hand, there is enough Tea Party skepticism and anger that it may be impossible to work the above deal through the House and we will actually reach an impasse.
2) In that event my number 2 resolution (30%) is that the President will wait until the limit is reached, will pay the interest on bonds to avoid true default and will temporarily start cutting elsewhere while "trying" to get agreement with the GOP. This could include delay paying some SS checks, my pension, military pay, etc (after all we are talking about a 42% cut of expenditures). If that horror show still doesn't push thru the #1 above solution, the President will do a nationwide TV address saying DOJ has carefully looked at options and has concluded that this catastrophic impact on the country is precisely what the 14th Amendment should prevent. The President will then reluctantly invoke it to restore all spending.
Unfortunately we will then get into standard shutdown territory over appropriations and could get another impasse on October 1. The President will be able to continue paying SS and Military during an appropriations impasse but will have to go through the shutdown routine. Unless --- maybe some of the rationale found to support the 14th Amendment resolution to the debt ceiling will be found to govern shutting down Government in the appropriations scenario and the President will pull a new rabbit out of the Executive Privilege hat. He will simply invoke a continuing resolution approach pending action by the Congress and wait for the Supreme Court to tell him no - provided Congress can pass a resolution to go there.
Net affect in either scenario, lots of turmoil in the markets but everything works out; our portfolios bounce back and we all survive.
It seems like the GOP has gotten into a terrible bind by taking Grover Norquist too seriously. When the President doubled down with his $4T proposal, they could have taken the money and run and probably negotiated some pretty painless loophole closing concessions but "the Pledge" is an impenetrable obstacle so no deal. The impression is settling in that a failure to raise the limit would actually be catastrophic so I think the GOP will have to blink.
1) Therefore my number one prediction (70%) is that we will see some sort of McConnell approach that gives the President full authority to raise the limit but preserves the right for the GOP to vote against what they just authorized him to do.
On the other hand, there is enough Tea Party skepticism and anger that it may be impossible to work the above deal through the House and we will actually reach an impasse.
2) In that event my number 2 resolution (30%) is that the President will wait until the limit is reached, will pay the interest on bonds to avoid true default and will temporarily start cutting elsewhere while "trying" to get agreement with the GOP. This could include delay paying some SS checks, my pension, military pay, etc (after all we are talking about a 42% cut of expenditures). If that horror show still doesn't push thru the #1 above solution, the President will do a nationwide TV address saying DOJ has carefully looked at options and has concluded that this catastrophic impact on the country is precisely what the 14th Amendment should prevent. The President will then reluctantly invoke it to restore all spending.
Unfortunately we will then get into standard shutdown territory over appropriations and could get another impasse on October 1. The President will be able to continue paying SS and Military during an appropriations impasse but will have to go through the shutdown routine. Unless --- maybe some of the rationale found to support the 14th Amendment resolution to the debt ceiling will be found to govern shutting down Government in the appropriations scenario and the President will pull a new rabbit out of the Executive Privilege hat. He will simply invoke a continuing resolution approach pending action by the Congress and wait for the Supreme Court to tell him no - provided Congress can pass a resolution to go there.
Net affect in either scenario, lots of turmoil in the markets but everything works out; our portfolios bounce back and we all survive.