Skip to main content

Seems the GOP's new line is that not raising the debt limit would be 'no big deal' and that Democrats are trying to use the possibility as a scare tactic. Which makes no sense of course because if their hostage is worthless, why bother taking it. But logic has no place when it comes to the GOP.

Fox News host Chris Wallace yesterday despicably accused the Obama Admininstration of trying to panic the markets. Which would make Republicans look bad.

Fox News host Chris Wallace suggested to Treasury Secretary Jack Lew on Sunday that President Barack Obama was purposely trying to "panic the markets" to damage the Republican Party.

"This week both you and the president seemed to be trying to panic the markets about both raising the debt ceiling and the government shutdown, saying that they should be more concerned," Wallace told Lew. "Aren't your efforts failing to try to use the markets to put pressure on Republicans to cave?"

And today Sen. Tom Coburn is trying to dismiss the 'rumor' that  a default would create havoc:

Sen. Tom Coburn said Monday that warnings of a U.S. default if Congress doesn’t raise the debt ceiling by Oct. 17 are untrue.
“I would dispel the rumor that is going around that you hear on every newscast that if we don’t raise the debt ceiling we will default on our debt. We won’t,” Coburn said on “CBS This Morning.”

The Oklahoma Republican said even if the debt ceiling isn’t raised, the dire predictions won’t come true.

“We’ll continue to pay our interest, we’ll continue to redeem bonds, and we’ll issue new bonds to replace those. So it’s not entirely accurate,” Coburn said, saying that attention needs to focus on long-term solvency of government programs. “What we need to do is have a discussion.”

Coburn said negotiations over the budget and debt ceiling go hand in hand, because the debt ceiling is a myth.
“The debt ceiling and the CR are the same thing. There is no such thing as a debt ceiling in this country because it’s never been not increased, and that’s why we’re $17 trillion in debt,” Coburn

I don't know who he thinks started this 'rumor' or where he gets his financial information, but generally Bloomberg News is the standard by which the GOP functions and from where come the marchng orders. They seem to think it would be a pretty BFD. They are predicting a total post-apocalyptic dystopia:

A U.S. government default, just weeks away if Congress fails to raise the debt ceiling as it now threatens to do, will be an economic calamity like none the world has ever seen.

Failure by the world’s largest borrower to pay its debt -- unprecedented in modern history -- will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. Among the dozens of money managers, economists, bankers, traders and former government officials interviewed for this story, few view a U.S. default as anything but a financial apocalypse.

The $12 trillion of outstanding government debt is 23 times the $517 billion Lehman owed when it filed for bankruptcy on Sept. 15, 2008. As politicians butt heads over raising the debt ceiling, executives from Berkshire Hathaway Inc.’s Warren Buffett to Goldman Sachs Group Inc.’s Lloyd C. Blankfein have warned that going over the edge would be catastrophic.

“If it were to occur -- and it’s a big if -- one would expect a series of legal triggers, potentially transmitting the default to many other markets,” said Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., the world’s largest fixed-income manager. “All this would add to the headwinds facing economic growth. It would also undermine the role of the U.S. in the world economy.”

This must be part of their face-saving strategy now that it's clear their hostage taking has failed. Oh, I guess it wasn't such a nice economy anyway, never mind. The GOP is in total disarray if they have stopped listening to the Masters of the Universe. And while they dick around, millions of lives are at stake.

To sum up:

I don't know any serious person who doesn't think this will be cataclysmic," said Steve Bell, a former Republican staff director of the Senate Budget Committee and now senior director with the Bipartisan Policy Center.
Which by definition, excludes the GOP lawmakers.
EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Pat K California, Louise, RichM, bink, Thumb, JWC, Sylv, PLS, hester, ferg, PeterHug, Shockwave, Sherri in TX, Wintermute, liz, gjohnsit, Caneel, eyeswideopen, missLotus, whenwego, phillies, roses, ctsteve, splashy, artebella, wader, edrie, psnyder, solliges, chantedor, defluxion10, zerelda, Curt Matlock, mungley, randallt, tomjones, Steven D, Emmy, Josiah Bartlett, bibble, Sassy, sebastianguy99, 3goldens, greycat, LakeSuperior, Alice Venturi, ZappoDave, dewtx, eru, kaliope, Ekaterin, mightymouse, Alan Arizona, SciFiGuy, profundo, Gorette, gpoutney, Rosaura, el cid, sceptical observer, ER Doc, onionjim, BlueMississippi, cpresley, camlbacker, Mary Mike, terabytes, HCKAD, jayden, Wreck Smurfy, leonard145b, JML9999, TomP, Empower Ink, gizmo59, fb, Blue Boy Red State, also mom of 5, TX Freethinker, GAS, MikePhoenix, Sixty Something, Involuntary Exile, elwior, KJG52, tofumagoo, petulans, Bule Betawi, Throw The Bums Out, Carol in San Antonio, Nebraskablue, glitterlust, Edge PA, Larsstephens, BlueOak, Its the Supreme Court Stupid, coppercelt, FogCityJohn, serendipityisabitch, estreya, Crabby Abbey, mookins, NYWheeler, Publius2008, ericlewis0, slice, rmabelis, theKgirls, Maximilien Robespierre, kerflooey, MidwestTreeHugger, slowbutsure, Nicci August, Chicago Lawyer, marleycat, antooo, bluedust, blue aardvark, SoCalSal, SteelerGrrl, Cpqemp, Mentatmark, Auriandra, No one gets out alive, Laurel in CA, cwsmoke, IndieGuy, a2nite, Trotskyrepublican, lunachickie, New Minas, rat racer, MusicFarmer, Arilca Mockingbird, Phoebe Loosinhouse, GeoffT, BobTheHappyDinosaur, Chaddiwicker, solarbay, Blazehawkins, WFBMM, TheDuckManCometh, maryannm, Gurnt, sillycarrot, Independent Progressive

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site