Mitch McConnell Enters Another Universe . . .

We may well be coming to a defining moment (apologies to Jon Stewart, this is a real defining moment) for the Obama Presidency over the raising of the debt ceiling.

Sen. McConnell has joined Speaker Boehner in demanding fundamental changes in the Federal Government as a price for raising the debt ceiling.

http://www.washingtonpost.com/business/economy/mcconnell-demands-spending-cuts-medicare-reform-for-deal-on-debt-limit/2011/05/12/AFTvBh0G_story.html?hpid=z2

 Although specifics are not mentioned, apparently this means privatizing Medicare and huge cuts in social programs that benefit the old, the poor, the young, the students and those in ill health and those unemployed.

Mr. Obama would seem to have the choice of standing firm for a clean debt ceiling bill, or reaching some agreement with the Republicans which essentially would be a victory for their agenda.  There doesn’t seem to be a middle ground.  If the President does stand firm, he will enjoy the support of the country, if not, well, the country may well conclude that if we are going to have Republican policies we might as well have a Republican President.

In leap from reality to an alternative universe, Sen. McConnell today said the following.

A bipartisan agreement to curb entitlement costs would reassure financial markets concerned about the nation’s ability to rein in its spiraling debt, McConnell told reporters after the meeting.

Since bond market have responded to the S&P warning of several weeks ago with rising prices and falling interest rates for U. S. government debt, it seems the financial market’s concern is a figment of Mr. McConnell’s partisan imagination.  Not a particularly good basis for policy.