Here’s my prediction
Tonight, the President will address the nation and call for merging John Boehner and Harry Reid’s debt ceiling plans.In effect, the President says if he can get a one time increase, instead of having to have two takes to get what he wants, he’s pretty much ready to go along with John Boehner’s plan.So here is what I predict will happen:(1) Harry Reid’s plan will die because it cannot get through the House simply because it is Harry Reid’s.(2) They’ll go with John Boehner’s plan and agree to raise the debt ceiling in one $2 trillion increment.(3) The credit rating agencies will cut the credit rating of the United States. Already the Obama Administration is privately advising that a credit downgrade is likely no matter what.(4) The President and Democrats will blame the Republicans and make the very persuasive case that they went with the GOP’s plan to avert a crisis and it wasn’t good enough, consequently higher interest rates are the Republicans’ fault.If the GOP is going to get the blame, they might as well go for broke and force Cut, Cap, and Balance.