Thursday, 28 April 2011

Annie Lowrey: Imagining the worst-case if the U.S. comes close to debt default | Full Comment | National Post

There is a series called "Aftermath" on National Geographic channel that shows what would happen if the impossible were to become reality - oil diappears without notice, the sun becoming a red giant, the earth begins to stop spinning today. I think they might want to consider the much more possible - that Obama and the Democrat's intransigence at the idea of making real cuts as a condition of boosting the US borrowing cap leads to the scenario pictured here.

The idea that they will be able to get an increase in the cap without giving the Republicans a combination of real spending cuts and a balanced budget amendment is foolish. It presumes that the Democrats still hold the hammer in such negotiations, but since the Congressional elections last fall, they don't.

Obama has to realize that he has a choice - cut spending the easy way, working with the Republican House, or the hard way, such as in the event of a default.

Annie Lowrey: Imagining the worst-case if the U.S. comes close to debt default | Full Comment | National Post

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