In short: Enough! Stop talking pure nonsense!
Related to the overall topic is this comment by an Instapundit reader:
I’m worried. See if you follow my concern. Thus far the Democrats have proved intractable on these negotiations. But more than that, they seem to be living in denial as regards the national debt and more importantly the deficits. Right now we’re projecting deficits of 1.5 trillion every year for the next ten years. But those projections are based on growth rates of something like 3 – 3.5% from 2013 onwards. Which is unrealistic when you consider the current debt load plus piling on 1.5T more every year. It’s obvious that these projections are pure fantasy. They’re in denial about Social Security, Medicare, and Medicaid sustainability and about Obamacare. They genuinely believed O-care was going to “bend the cost curve”! It’s ridiculous.
Now, we all know this. None of this is new information. What has me worried is the idea that the Democrats ACTUALLY DON’T UNDERSTAND THIS IS THE END OF THE ROAD. What if they actually aren’t capable of recognizing when they’ve lost? Or when we’ve run out of other people’s money? None of these people work for a living. Their concept of where money comes from and how wealth is created (and destroyed) is completely divorced from reality because they live in a government bubble. And the very small minority among them that do understand this from previous jobs and experience are okay with Progressive policies aimed at leveling/equalizing/delivering-economic-justice because they just assume that the economy can handle some siphoning. And usually it can. But not at this volume or for this time scale.
Here’s the position I think we may be in. We’ve been negotiating with the President and The Democrats in Congress on the assumption that they’re sane. It’s okay to play hardball with these guys because eventually, whether they like it or not, reality insists upon itself and they have to cave. It’s a painful process so you expect some tantrum throwing and caterwauling, but eventually they HAVE to accept reality. Except if they’re not sane. If they want five apples and there’s only two plus two but they CAN’T ACCEPT that two plus two equals four. Orwell wasn’t just writing a parable about the eventual end point of IngSoc. He was describing what human psychology can drive Ministers to inflict upon the populace for the sake of “justice”. I’m worried they’ll pull the trigger on default as just one more “political” step in the march towards freedom from want or whatever other principle they’re operating under. They’re playing this game as if they could win, as if taxes in a downturn are a good idea with benign consequences. As if debt equivalent to GDP is survivable for the world’s anchor economy/currency, let alone sustainable.
And so maybe, just maybe, Republican strategy (what little there is of it) has badly misread the opposition. Obama tried to add 400 billion in taxes to a deal he had already agreed with Boehner at the last minute. Boehner walks out cause Obama is negotiating in bad faith and has been all along, but what if Obama is actually incapable of good faith negotiation? I think right now that it’s actually possible we won’t see a deal at all. Because the Republicans are looking at the math and at reality and saying “Okay, Democrat demands can’t be serious because they can’t possibly work” and Democrats are looking at politics and how it works and saying “We don’t have to give in cause that’s not how you win these things. You pin it on the other guy politically and then reap the political dividends.” I wasn’t around for the start of WWI, but I get the feeling I understand Kennedy’s fascination with Tuchman’s Guns of August. I’m not talking about a shooting war, but about leaders overestimating and underestimating and just plain misjudging each other in a brinksmanship scenario. In short, it could be too late to do anything when people finally wake up. The crisis may have already arrived with an economic and fiscal momentum all it’s own that no amount of dealing or compromise or statesmanship can stop..
Also, let us note that Bill Clinton is urging the 14th Amendment, not as a reason to default, but as a reason for Obama to keep borrowing regardless of what Congress authorizes, so that kind of backs up my point, yes?
These commenters at Legal Insurrection spell out why Clinton's gambit probably wouldn't actually work:
I expect the Dems joker is the 14th Amendment ploy and I fully expect them to use it. Slick Willy said as much and there have been hints in other quarters.
The 14th amendment gimmick may not work. I’ve already seen commentary that some traders of government debt will avoid dealing in those cusips. Nobody wants to be stuck with paper that the courts could deem to be illegitimate because it wasn’t authorized by Congress.