Wednesday, October 16, 2013

Government Shutdown/Debt Ceiling Issue

There is a lot of talk about a solution emerging from the Senate. There may be a compromise among senators from both parties, but the fact remains that the problem is in the House. The problem is that there are idiot tea party Republicans who I really do not think understand basic finance. The idea that the U.S. government can just be allowed to default on any of its obligations is completely ridiculous, but we have members of the tea party caucus who think it would not be so bad.

John Boehner has a choice: (1) allow a "clean" spending bill and debt ceiling increase to go forward and probably lose his job as Speaker from a revolt by tea party folks, or (2) continue the shutdown, do not pass a debt ceiling increase, and watch the U.S. and global economy fall into a major depression. The second option allows him to keep his job temporarily, but he will probably lose his Speakership because Dems take over the House.

It is scary to think about how bad it will really be if the tea party radicals win out.

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