unblock (1000+ posts) Sat Jul-30-11 08:15 AM
Response to Original message
7. they've kinda boxed themselves in; the ONLY "victory" for them is default
there will be some ignorant extremists who will believe they capitulated no matter what the agreement ends up being unless they "show their resolve" by force obama to miss a payment on SOMETHING first.
i think they figure that no matter what obama does, obama loses. he has to pick some payment to not make, thereby pissing off some constituency. alternatively, he can try something controversial that would give republicans fodder for impeachment buzz (they won't actually impeach him, they just want the "scandal".)
then, shortly after they've shown their willingness to push the country into default, they will come to an agreement, most likely something very similar to the reid plan, but different enough that they can say they got "something extra" because of their "resolve".
they know obama won't miss a payment on social security or interest on treasuries and they think that a temporary delay on a few payments to the lower priority bills won't be a real problem for the government. it's true that this might not result in a downgrade or in noticeably higher interest rates, but you can be damn sure that all government contractor will factor this in to their next bid.