Tuesday, July 26, 2011

On the Road to Default

I thought the adults would take center stage. Well that does not appear to be the case.

I see very little hope that default is going to be avoided. In part because there is so very little time to get this accomplished.

But then again come August 2 nothing will happen anyway. That's what the Tea Partiers say. Anyway who says otherwise is lying because we can pay some things and not others and that will be perfectly fine. Even if rating agencies say they will down grade the status of US bonds. Oh they are lying too. Anyone who doesn't agree with the Tea Party position is wrong or is a liar.

Now returning to reality. In the House:

Boehner’s plan calls for linking increases in the debt ceiling in two stages to about $3 trillion in spending cuts.
The reaction:

Even after the White House expressed strong opposition to Boehner’s proposal Tuesday afternoon and threatened a veto, Boehner forged ahead with his plan for a Wednesday vote despite misgivings in his own party. About 10 House Republicans publicly declared opposition to his plan as too timid in its restraints on spending, and about nine more suggested they were leaning against the plan. Few, if any, Democrats were expected to support his plan, so the speaker could afford to lose only about two dozen of his 240 House Republicans.


You have to wonder how this is going to be passed when Republicans have questions about it.

Obama doesn't get off free in this either. He waited to long to join the debate. Reminds me a little of health care. Only this time the consequences are much higher.

I'm glad I refinanced when I did because interest rates will probably never be this low again on just about anything again. Even if some sort of compromise is cobbled together (at this point in time probably kept together by paper clips, rubber bands and chewing gum), it may not be enough for the markets and credit agencies. In all likelihood the economy and the faith in this country will be taking a hit (actually it already has). It means any sort of a recovery could very well be stopped in its tracks.

Oh but wait that's outside of what the Tea Party believes reality is so I must be lying.

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