So some version of the Reid plan it will be. The Boehner plan isn’t just dead, it’s inconceivable. The notion that Congress might “debate” a second tranche of deficit reduction six months from now — as the Boehner plan requires –isn’t ever going to fly. There is only so much that people can take.
If some version of the Reid plan it is, then it will have to pass the House with Democratic and Republican votes.
Democrats who vote for it will not be punished in their primaries next year. Some, maybe many Republicans who vote in favor of the Reid plan will be punished in primaries next year. The Tea Parties will see to that
I hope that something note worthy happens over the weekend. But I expect there is not enough time to produce something that will prevent our debt from being rated lower.
Who wants to loan money to anyone with such a dysfunctional system of government? And the House wants to do this all over again in a few months?
I think we are about to see the end of the dollar as the reserve currency. The BRIC countries will probably like that. As it hits the bottom line of every American.
That could have huge impacts on our economy and on the cost of things. All because we have a government that can not govern.
The last words of the article are, unfortunately, both scary and realistic:
It’s no longer clear that the “August 2nd deadline” and “technical default” really matter any more. The truth is the political system has, by its behavior, already declared its bankruptcy. And since it is the political system that has stewardship of fiscal matters, it follows that the United States government is bankrupt, politically and as a fiduciary.
Jim Cramer was on television today, saying that he thought it was possible that the Congress might authorize the sale of all the gold in Fort Knox to cover expenses for the week of August 2-August 9. If you had heard such a thing 30 years ago, you would have said: “that’s insane.” When I heard it this afternoon, I thought: “we could do that. We might have to do that.”
What happens to the social fabric of a nation that is bankrupt? Does anyone know? Care to hazard a guess? My guess is that the United States of America begins to untie, unravel. Truth is, the unraveling is already well along. The question is whether it accelerates or reverses itself with renewal.
All the political signs point to acceleration.