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View Diary: GOP Shutdown/Default: Game Over, Shutdown Over, Default Averted, America Wins (11 comments)

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  •  guardian-uk LIVEBLOG: (1+ / 0-)
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    "One of worst political blunders in modern U.S. history is likely to be remembered as good news," Anatole Kaletsky writes for Reuters. He means the shutdown.

    His reasoning proceeds from the opinion that a path is now clear to a budget deal which would include Democrats abandoning their insistence on higher taxes for the rich. There are plenty more counterintuitive nuggets where that came from. Kaletsky:

    Apart from discussing Social Security and Medicare reforms, to which Obama has already agreed, the Democrats need to make only one more concession to facilitate a bipartisan deal: they must abandon their insistence on higher taxes. While conventional wisdom maintains that this is the one concession Obama will never make, it would actually be surprisingly easy because of changing economic conditions. Recent revisions to budget forecasts imply that the U.S. government no longer needs additional revenues to control its deficits. As Larry Summers has pointed out, the federal deficit will narrow to just 2 percent of GDP by 2015, even without further fiscal action. Beyond that an increase of just 0.2 percentage points in the economy’s structural growth rate “would entirely eliminate the projected long-term budget gap."
    Kaletsky thinks the president, whose power is waxing, can now "dictate the broad terms of a budgetary truce" to Republicans, and that "the approaching budget and debt negotiations should prove surprisingly consensual and calm." In short, he thinks the Republicans are beaten, and so will change their negotiating posture. It's a stimulating read. The full piece is here.
    (again, my bolded.)

    Addington's perpwalk? TRAILHEAD of accountability for Bush-2 Crimes. @Hugh: There is no Article II power which says the Executive can violate the Constitution.

    by greenbird on Thu Oct 17, 2013 at 09:33:47 AM PDT

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