How the Tea Party created the debt ceiling debacle

theatlantic.com

10 points·sasvari··4 comments

I'm not really following USA political market that closely, but is there any investor, politician or economist who has even a slightest doubt that the ceiling will be raised? Or am I too naive?

Obama has said he won't raise it on his own, even though he can legally do so. I don't believe him. I think if we got to that point, he'd just do it.

I'm sure there are plenty of people who think it won't be raised, but are they sane? I don't know.

Some believe that a default benefits Tea Party politicians, because it will hurt Obama in the 2012 elections. The ideas goes that history will remember the person that was president when the US defaulted, not the politicians that were actually responsible for it. Trump said so himself on TV. Why would anyone let insane people like this run the country?

To believe that only 1 party or segment of 1 party is at fault is absurd. Someone posted an interesting video the other day: http://www.kpcb.com/usainc/

An alternative story to Fallow's is: http://blog.heritage.org/2011/07/28/the-truth-about-obamas-b...

Which shows that Obama is more to blame than Bush, which is different than what Fallow's used in his article. Situation is normal as each side is blaming the otherside.

I think if you look at the make up of congress when significant increases in deficits occurred, it might give a better indicator.

John Mauldin has a book called Endgame, which is worth reading through Interlibrary loan. It presents some interesting ideas.

But what it comes down to is that the US is acquiring debt faster than is recommended. It is possible to correct the issue, but not sure the political will is present to do so.

Reply on news.ycombinator.com