Some Conclusions on the Debt Ceiling/Deficit Reduction Plan - An Ugly and Inevitable Process

And a Very Ugly and Inevitable  Result

As the increase in the debt ceiling and the accompanying deficit reduction package concluded its final act, one more depressing activity must be taken.  This is the famous “Look Back in Anger” moment.  Here they are.

What If, what if Mr. Obama at the start of the debate had said the following.

Not any more sir,
Not any more

“I will only accept a clean bill.  If there are any conditions attached to the bill I will veto it.  Every debt ceiling increase in our history has been a clean bill.  If a clean bill is not produced and the country defaults, it will be solely the fault of the Congress.”

Just wondering, what if?

Instead of taking a summer vacation of Martha’s Vineyard, or wherever he decides to go, Mr. Obama should enroll in a five week summer school course in Introduction to Game Theory.  He and the country will be better served than anything else he could do.

At the end of 2012 or at the beginning of 2013 the Bush era tax cuts will be extended or made permanent.  This, along with other tax decreases will more than offset any deficit reduction in the current package.

That Conservatives were willing to plunge the economy in chaos and plunge world financial markets into disarray to get what they wanted says much about them, and not in a positive way.  That the news media never called them on this says much about the state of journalism today.  That the American people were not outraged says that there has been a fundamental change in the way citizens view government.

Will Default for Votes

Had Mr. Obama stood firm he would have been criticized for a

willingness to let the country default.  Mr. Romney and Ms. Bachmann, the two leaders in the Republican race for the nomination took that position.  They have endured no criticism.

Republicans had a choice of “triggers”, and chose to sacrifice Defense Spending over increasing taxes.  No one should ever doubt that Republicans will throw everyone and everything under the bus to preserve and increase tax cuts for the wealthy.

No one in the administration should ever, ever let Gene Sperling, whoever he is, out of his office to talk with the media on any subject.  See the results here.  In fact, it may be wise just to never let the man out of his office, period.

In 1995 when President Clinton stood up to Republicans and allowed them to shut down the government, the ultimate result was that this weapon was eliminated from the arsenal of Conservatives, hopefully forever.  Mr. Obama in his dealings with the Republicans has given this weapon back to them.  Expect it to be used repeatedly until someone takes it away from them again.

And then there is this.

The legacy of Mr. Obama's failed strategy

Victory - And Shouldn't He be
Smiling More

"In the future, any president, this one or another one, when they request us to raise the debt ceiling, it will not be clean anymore. This is just the first step."-- Senate Minority Leader Mitch McConnell (R-KY), in an interview with Larry Kudlow, suggesting fights over the debt ceiling are the new normal.

Mr. Obama cannot win re-election on his own merits.  Few will vote for him because they support him and his policies.  If Mr. Obama is to win re-election it will have to be on a campaign that the other person is worse than he is.  “I have been a terrible President but the other person would be even worse” is seldom a winning strategy, but given the Republican field, it just might work.