White House Press Secretary Jay Carney refused to rule out the possibility of minting a $1 trillion platinum coin to solve the debt ceiling crisis. In a graphic, Republicans argue that the weight of the coin would have sunk the Titanic.
Debt
How to Win When Everyone Loses
In Washington, consolation prizes–pleasing the base, appearing tough and strong, handling negotiations better–are really the only victories in town.
The Weird Resonance of #Mintthecoin
Here is a thought exercise. It’s 3013. You’re a historian, and you want to teach your students about the temporary dementia that gripped the political-media complex a millennium ago. I submit that you could do worse than to give …
Why John Boehner Wants Another Grand Bargain (And Why He Probably Won’t Get One)
During House Speaker John Boehner’s first stint in the leadership in the mid 1990s, just about the only adornment on the walls of his tiny Capitol Hill office was a portrait of Nicholas Longworth, the last Speaker from Ohio. …
S&P’s Political Miscalculation
Over at the Curious Capitalist, Steve Gandel offers an approving take on Standard & Poor’s downgrade of U.S. debt. “The ratings agency’s decision on Friday to downgrade the credit rating of the U.S. government to AA+ from AAA — …
The Debt Debacle Explained
The new print issue of TIME (available to subscribers) tries to make sense of the debt-limit mayhem that just consumed Washington. In it, I have a piece taking stock of the Tea Party’s amazing ability to commandeer the debt debate. What interested me most is how the Tea Party succeeded through playing by its own set of rules. Daniel …
Is the Debt-Ceiling Hostage Scenario Really Bound to Repeat Itself?
The conventional wisdom now dictates that every time a debt-ceiling hike comes up for a vote, Republicans will threaten to torch Uncle Sam’s credit rating unless their demands are met. Just take Senator Mitch McConnell, …
The Unelected Winners and Losers of the Debt-Limit Showdown
So we already know what the debt-limit debate did for leaders in Washington: nothing pretty. By and large, the American people were turned off by both parties, infuriated that political squabbling might do measurable damage to …
Debt Deal Ushered into Law as Obama Hails ‘Important First Step,’ Pivots to Next Fight
With less than 11 hours left before the U.S. faced taking drastic action to avoid a default, the Senate on Tuesday overwhelmingly passed legislation to raise the nation’s debt ceiling and trim federal deficits. The measure …
Don’t Be Distracted: The Top Four Red Herrings of the Debt Debate
The day-to-day of Washington political debate is often little more than misdirection. All sides craft messages aimed at attracting the sympathies of select groups of voters, even if the soundbites have little or nothing to do with what is actually happening. These red herrings make headlines, but they poorly reflect policy or political …
Don’t Let Wall Street or Washington Fool You: The Danger Is Default, Not Downgrade
There are serious financial and economic dangers in the game of chicken Congress and the President are playing over raising the debt limit, but downgrades by the ratings agencies are not among them. Sure, it sounds ominous: If Republicans and Democrats can’t agree on a deal for at least $4 trillion in deficit reduction over ten years, …
Unable to Deal With Each Other, Obama and Boehner Invade Prime Time
“I won’t bore you,” President Obama said, as he broke into America’s prime time TV lineup on Monday night. This was ironic, because he went on to talk about Triple A credit ratings, Dwight Eisenhower and the debt limit. …
Debt-Limit Divide Deepens as Talks Approach the Brink
As the U.S. hurtles toward a potential debt-limit default that would shake the fragile economy, the chasm between the two parties widened on Tuesday, as Republican opposition to tax increases calcified and Democrats bristled at …