Economy

Jul 11, 2011

No deal on debt sends US economy to the brink

The White House debt crisis talks took a turn for the worse in the last 24 hours, as Republican Speaker John Boehner walked away from a $4 trillion spending cut called the "deal of the century". The stunt could be catastrophic.

The White House debt crisis talks took a turn for the worse in the last 24 hours, as Republican Speaker John Boehner walked away from a $4 trillion spending cut called the “deal of the century”.

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4 thoughts on “No deal on debt sends US economy to the brink

  1. Gavin Moodie

    Interesting. At least some of Obama’s public statements seem to ‘reach out’ across the aisle. Whatever the White House’s funny buggers, the Republicans’ blocking of a Bill to increase the US feds’ borrowing limit is irresponsible.

  2. michael r james

    Correct but David Brooks on his end-of-week discussion on The Lehrer Newshour (Friday but broadcast here in Oz on Saturday) was asked by Lehrer why Obama and Boehner seemed to work fairly well together, responded with a theory that they are both incumbents and so are more vested in resolving the situation. Whereas the opposite is true for both the majority of Republicans and Cantor & Kyl (and Nancy Pelosi whom Obama has done no favours during these negotiations).
    So yes, one interpretation is that the WH leak was shooting themselves in both feet. Except that it seems more likely to engineer the Republicans taking full ownership of the coming debacle. I’ll buy into the WH having the smarts to devise a fiendish strategy but the Republicans do not seem to have any approach one could call smart, nor historical memory of the Clinton days (except for Boehner who does not want to reprise the role of Gingrich.)
    Incidentally Brooks also strongly believes there will be a deal done at the last minute.

  3. Chess C

    This is a non-news story – just the usual game of political brinksmanship. (Notice the amount of attention financial markets are paying to this? i.e. none) The US isn’t going to default on it’s debt. Remember back in April, the last time this happened. There was going to be a government shutdown, but no, just at the last minute they did a deal. Phew, what a close one. Like last time, Republicans are going to drag this out as long as possible because it generates headlines about US government debt. And then they’ll approve only a small increase in the debt ceiling so we can have the same story again, at least once, before the presidential election, preferably right before the presidential election.

  4. Harley Dennett

    There are very very few people who disagree that blocking a bill to avoid the US government defaulting is gross irresponsibility. But I thought it was important to add context to the last piece I wrote on these talks. Both sides are having a hard time leaving their point scoring at the door, and Obama’s closest advisors are no exception.

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