Economy

Aug 1, 2011

The US debt deal nobody likes is done … almost

Less than 48 hours before the US government runs out of money, a tentative deal to avoid default has split both parties down the middle and a vote still has not been scheduled.

The debt ceiling brinksmanship game in Washington is over, but the crisis is not. Less than 48 hours before the US government runs out of money, a tentative deal to avoid default has split both parties down the middle and a vote still has not been scheduled.

President Barack Obama announced the deal in a televised address several hours ago, and that leaders of both parties in both chambers of Congress were on board. However, the votes for both parties will be messy and even the president said this wasn’t the deal he wanted.

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7 comments

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7 thoughts on “The US debt deal nobody likes is done … almost

  1. Gavin Moodie

    Thanx for this. On ABC Radio National Breakfast this morning Glenn Thrush , senior correspondent with politico.com, said that Obama and the Democrats lost the policy but won the politics. He meant that the Republicans won cuts to welfare without having to remove any of Bush junior’s tax cuts, but that its hard line and internal splits over the last fortnight have made it unpopular with centerists. Notwithstanding that, I note that in the next piece GRundle predicts that the Republicans will win the Senate as well as the House in the next congressional election.

  2. MLF

    A balanced budget amendment? Radical.

    Every single elected official in the United States should be hangin their head in shame right about now.

  3. Meski

    They’re only prepared to make ‘those tough decisions’ on behalf of the other side.

  4. Malcolm Street

    “The international scorn directed at Washington has not been lost, at least to the media covering these negotiations.”

    How about disbelief? I can imagine hardliners in the Chinese government saying to would-be liberalisers: “Do you REALLY want democracy if this is what happens?” OTOH I can imagine Chinese officials laughing their heads off – China is closing in on the US and the US is tearing itself apart.

    “Journalists are talking about the need for fundamental structural reform of US parliamentary rules to prevent this pattern of moving from crisis to crisis. ”

    How can there be “fundamental structural reform” in a system that, to give just three examples, can’t agree to:

    1. make its bank notes of different size and colour, like everyone else, to stop them being easily confused.

    2. move elections from Tuesday to Saturday

    3. adopt the metric system. Good luck trying to be a technological leader when you don’t even use the world’s standard measurement system.

    “Some have even suggested this may provoke the emergence of a new third party willing to make those tough decisions.”

    With FPTP voting, forget it. However, we have already had essentially a third party appear by infiltrating the Republicans – the Tea Party. And they’re the ones pushing the “tough decision” line to a lunatic extreme.

    I’m just glad it’s not my country.

  5. Bellistner

    They demand a Balanced Budget Amendment, a new addition to the constitution that would prevent any borrowing except in exceptional circumstances such as national emergency or by a super-majority vote of congress.

    Yes, because that’s worked so well for States and Counties that have implemented similar schemes.

    Some have even suggested this may provoke the emergence of a new third party willing to make those tough decisions.

    Bwaaaaaahahahahahahahahahahaha!

  6. Malcolm Street

    Bellistner – “a new addition to the constitution that would prevent any borrowing except in exceptional circumstances such as national emergency ”

    And if the biggest recession since the Great Depression isn’t a national emergency, what is?

  7. Bellistner

    Malcom: The GFC is self-inflicted, so I don’t think it counts. Regardless, the language used is stereotypical Libertarian talking point ie the Government can’t do anything right, so make it as small as possible. With ready access to cash, governments can’t function very well, so removing that access effectively hobbles the government. Which is fine if you don’t believe Kensyian Economic Theory and advocate a laizze faire approach.

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