Correct. Most analysts believe that, at the 11th hour, if the GOP holds firm, BO will fold like a cheap suit. He cannot afford to rattle the markets, which could trigger a double dip. Further, he cannot withhold SS checks, because too many seniors will be told the truth - that the govt has plenty of money to meet this obligation.
BO cannot afford the high stakes of a default or SS games. He will lose in either approach. All Boehner has to do is stick with the dollar-to-dollar commitment and demand front-loaded spending cuts - at least $500 billion in FY 12 alone.
It’s my understanding that if no credit lift, spending in absolute terms will drop 66% . Can you imagine?? A 66% drop in spending