Replies

So...even if the Republicans cave and increase the debt ceiling, the US is still screwed? And, if Obama gets everything he demands, we're still screwed?

I'd say that the blame falls on the guy sitting in the White House (you know, "the buck stops here")

I'd say that Obama and Timmy have known this for a while, and were just "crying wolf" to increase taxes. Just for the sake of increasing taxes...

ATTENTION:

The dirty little secret in all plans put forth is that they use CBO baseline projections FOR REVENUES.

Those presume GDP growth that is vibrant with low to no inflation.

If we uncork a 1% GDP number in Q3 or Q4 of this year, and more 1% growth quarters early 2012 ALL THESE PLANS DISINTEGRATE. The deficit will re-explode.

And no, the answer is not to chop more spending off FY2012, nor is it to raise taxes then. Both are fiscally contractive.

Conclusion: It’s too late. There is no fiscal policy answer beyond default, which itself means no one will lend the US Treasury any more money and deficits have to go to zero instantly via shock — which would further contract GDP.

So...even if the Republicans cave and increase the debt ceiling, the US is still screwed? And, if Obama gets everything he demands, we're still screwed?

That's been my thinking on it. NONE of this is BINDING. It can ALL be changed by the next congress and the next president. The dems have done PLENTY of "Hey...sign here and we will screw you...I mean...work it out later."

So...my thoughts have been why don't they GIVE him what he wants? It is OBVIOUS that a downgrade is coming. It is FREAKING OBVIOUS a downgrade is NOT tied to the debt ceiling and will come with any deal less than 4 Trillion in cuts. So...give him what he wants...but make it PERFECTLY CLEAR TO THE WORLD: WE ARE AGAINST THIS...THIS IS WHAT WE THINK IT WILL DO...WE ARE ON RECORD. But for the sake of UNITY...and COMPROMISE...we are doing this.

With FULL knoweldge it will screw us...and HIM (and let's face it...we are screwed ANYWAY) because what he wants will lead to a downgrade...and it will PROVE that we were right.

Then...they lose next year and we undo all that they DID with our super-majority in both chambers and the presidency. We undo Obama-care...etc.

How hard is that?

See....I think Obama and the dems KNOW this...and that is why they want the GOP's fingerprints all over it. We are falling into a trap.