Sunday, July 24, 2011

UPDATE: An END may be in sight—a BAD ONE

There seems to be NO PROGRESS on a deal to end the debt increase crisis.  CBS News reports that Republicans are prepared to move on their own to insist upon a two step deal they know Democrats and Obama will not accept.  They seem to be offering NO room for negotiation left, just “our way or nothing." This from CBS:

Boehner's $3-4 trillion proposal is expected to include a short-term increase in the debt limit paired with cuts of equal or greater size, along with an agreement to increase the limit again later on - on that occasion paired with spending reforms. Entitlements and mandatory spending would be targeted for reforms and savings, which would be identified either by a commission or by congressional committees.

Obama has called Reid and Pelosi to the White House for a meeting tonight to discuss the status of the debt ceiling non-negotiations and, presumably, work out Democratic strategy or “backup plan” to counter the “backup plan” Republicans are plotting. 

I think both sides now see some political advantages in default. There is no trust left and you can't have real negotiations if the people at the table don't trust each other. As far as I can determine, no discussion are going on and each side it now just trying to win the PR war over who is at fault for allowing the U.S. Government to destroy the U.S. economy. Onion had it right. They all discussed whether to save themselves and the country from disaster and decided to just go with the disaster. Reminds me of a very unpleasant divorce in which the man and woman know they will both lose but can't help themselves and just turn it all over to the lawyers.

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