Now that the proverbial can has been kicked down the road yet again, those that feared the sky was about to fall can rest easy. With the current crop of Republicans being what they are, some of us knew what would eventually happen, and…we were right.
The best and brightest in Washington seemed to have averted the catastrophe that they manufactured. Senate Majority Leader Harry Reid and his Republican sidekick Mitch McConnell have struck a deal that would reopen the government, raise the debt ceiling and fund Obamacare. In other words, Barack Obama got what he wanted without having to concede anything. Not even a concession of time. He didn’t have to cancel one hole of golf. The senate spending bill will be sent over to the house where Democrats and a few Boehner Republicans are certain to sign off on it. The temporary measure sets the stage for another showdown in a few months, but if that negotiation goes anything like this one, then why bother?
If Barack Obama didn’t get everything-and I mean everything he wanted, he was willing to shut down the government and default on the national debt. A little information about the debt. The United States would only default if it decided to. With federal revenue topping $3 trillon annually, the interest on the debt could be paid without issue. There are other government services and programs that would suffer as a result of not authorizing more borrowing though, including Obamacare. That was the issue. Well, the main issue. The IRS, the 16,000 strong EPA, and the ever wasteful green initiatives would have taken a hit also, along with other wasteful spending that will likely never be addressed.
Obama could care less if the United States defaulted. He’s already made it clear that the United States should not be above anyone else. What his community organizer mind fails to grasp is that if the United States goes, so goes the world. Do you think China could step in and stabilize the world? Their own economy would be reeling as a result of a U.S. default and the resulting domestic chaos would keep them occupied to the exclusion of the rest of the world. Or, maybe he does understand it. After all, he must have known the kind of mayhem the Arab spring would unleash, yet his cheerleading has seen a Middle East that is more unstable than it has been in decades.
To hear two foreign economists on Charlie Rose the other night, it was pretty clear that, at least they see America as king of the world. Both of them laughed off the notion of China stepping in to fill the power void if the United States collapsed. They send their citizens here to get educated. What does that tell you? One of them characterized what was going on in congress as nonsense. With $3 trillion in annual revenue the circus we’ve seen the last few weeks was nonsense. We knew the Republicans would fold anyway and give Obama whatever he wanted, just as they have been doing all along. What this episode did expose though, is a mutiny among Republican ranks. And that’s a good thing. If we can get another flood tea party types into Washington next year, maybe we can knock off the nonsense.
Until then, the establishment politicians in Washington will savor their victory over common sense, the tea party, and the American people. They have a few more months to decide how to spend our money, and then run the sequel. My guess is that the sequel will have a similar ending.