Republicans "Call Obama's Bluff" Schedule Vote Next Week For Deficit Cap, Debt Ceiling Raise, Balanced Budget
Contrary to some expectations that the end of the week would see some resolution in the ongoing Washington soap opera, or at least provide some hope for a weekend meeting, things keep deteriorating after the adversarial language in DC keeps escalating, in what appears set to be an epic Nash Equilibrium showdown. To wit: even Jim DeMint just tweeted that Boehner has just called "Obama's Bluff" confirming that the prevalent of the charade is nothing more than a game of cards. From Bloomberg: "The U.S. House plans a vote next week on a measure that would raise the government’s debt limit by $2.4 trillion, cut spending, cap government expenditures and propose a balanced-budget constitutional amendment, Republican Representatives Sean Duffy and Billy Long said." Per Reuters, "House of Representatives Speaker John Boehner said on Friday that deficit reduction legislation due for a House vote next week is "a solid plan" for moving forward toward an increase in the U.S. debt limit. The legislation, favored by Tea Party-backed lawmakers, would cut and cap federal spending while calling for adoption of a balanced budget amendment. "We're far from the time for a last-ditch effort," Boehner told a news conference at which he criticized Democrats including President Barack Obama for producing no "real plan" with serious spending cuts." If nothing else, this indicates that the Cantor wing in DC continues to usurp power from Boehner, and while this is certainly nothing more than power politics at their best (or worst) the one direct impact of all of this is that the outcome of a US technical default, so dreaded by all, could be the reset switch that was so needed to be pushed after Lehman, yet was merely kicked perpetually into the future: a path that is guaranteed to have a catastrophic ending. Yes, the pain would be acute, but like Iceland, America will survive, and yes: the current status quo will be wiped out. But the country will have a literal and figurative "fresh start."
Then again, none of this will happen as DC will betray the interests of future generations of America and promptly remember that on a NPV basis, it is the very same status quo that pays the bills...
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