Speaking of the debt ceiling needing to be raised:
"The only budget battle that matters is the fight over what kind of "compromise" the White House cuts with Republicans to get the continuing resolution extended" -- Andew Leonard http://www.salon.com/
I've been focused on this issue for awhile now --- since its been the only real hook the GOP has on the Democratic agenda and Obama.
Jan 6, 2011 note:Referring to the need to raise the debt cieling sometime during the 1st quarter:
In his statement, Boehner did not question the need for an increase, but said it must be accompanied by other measures."Spending cuts - and reforming a broken budget process - are top priorities for the American people and for the new majority in the House this year, and it is essential that the president and Democrats in Congress work with us in that effort."
Right... looks like an interesting brinksmanship showdown is coming, huh?
The only reason its a hook though is because the democrats won't put the GOP on the spot to either accept an increase in the ceiling without compromise or let the US suffer a major international economic debaucle that would make the great recession's fallout look like child's play.
Its such an easy & simple story to tell --- the debt cieling increase is necessitated soley by the GOP's policies enacted during the Bush presidency, as well as gov't failure to reign in health care cost rates of growth. In other words the GOP created the need to raise the debt ceiling so if they now chose to prevent congress from doing so by demanding Democrats reduce spending on Medicare & Social Security in return for their vote to increase the debt ceiling, then it's the GOP both creating the dilemna and the national and international fallout that the US public and wall street will feel for suffer for.
So democrats simply need to stand pat.... let the GOP shoulder the direct blame for the ensuing economic fallout. .. the created the problem so it's only justified that they should also accept the consequences and pass the new debt ceiling required.
The coming issue is thus whether the GOP's constituants understand "fair play" or whether they will create and promote the brinksmanship game.... and whether the democrats have any back-bone at all. That said, however, since both parties are beholden to the monied elite (read wall street) for their continued employment as our representatives, and failure to raise the new debt ceiling will also have a huge negative impact on their income & profit, plunging the stock market as a result and most probably pushing the economy into an even deeper great recession than we've experienced aleady, then both parties are incentivized to pass a new cieling...... hence the democrats will not stand pat, and the GOP will extract even more from the democratic agenda than they already have been able to do.
The end result will be another wind-fall for the upper 2% of income earners with democrats caving to the GOP demands, and the other 98% taking it in the shorts again... all the while making like they (the dems) have a gun to their heads. The only gun to their heads will be held by the controlling elite to whom they remain indebted for funds to be re-elected in 2012.
Although I think I know how and why it will play out a I've described, I'm still really curious about how the actors will perform during the course of the play and looking forward to watching the show.