Will Obama Mint a Trillion Dollar Coin to Circumvent Debt Debate?
On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss the minting of a trillion dollar coin as a potential work around of the debt limit debate, what impacts it would have on the market and if this super-coin could work in a Coke machine.
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Have Republicans Boxed Themselves Into a Government Shutdown?
First of all, I hope so. But have they boxed themselves in? Consider that the fiscal cliff deal is playing badly with lots of folks, not just partisan Republicans and partisan Democrats. Congress playing brinksmanship with nothing to show for it really is aggravating the American public. If both sides are going to play at brinksmanship, at some point the base of the parties and | Read More »
Happy Debt Ceiling Day
It feels like yesterday when John Boehner was bragging how he got 98% of what he desired from the deal negotiated to raise the debt ceiling in August 2011. Yet just 17 months after Obama was granted a $2.1 trillion debt limit increase to preserve his reelection, we have breached the new ceiling. In just 519 days, we’ve burned through $2.1 trillion in debt, for | Read More »
Are We Living in the Twilight Zone?
At least Esau got a bowl of lentil soup for selling out his birthright. What will Republicans get? It’s amazing how events in politics seem to repeat themselves more often than Charlie Brown and the football. It seems like it was yesterday that we were advocating against Boehner’s trial balloon vote to raise the debt ceiling at the end of July. Back in 2011, it | Read More »
Boehner Can’t Give Away the House Fast Enough
What is worse than striking out? Grounding into a double play. Not only is Boehner prepared to raise taxes – both through capping deductions and increasing marginal rates – he is now prepared to preemptively surrender our last point of leverage in one fell swoop. The media is now reporting that Boehner offered Obama a clean 1-year debt ceiling extension as part of the deal | Read More »
“Next Time We’ll Really Stick it to Obama”
A common tactic used by someone who fears confrontation is to contrive an excuse for not battling his adversary at the present, while promising to deal harshly with him in the future. That’s how the GOP has operated with Obama in all of the budget battles over the past two years. It’s always ‘the next fight.’ There is an emerging consensus from some conservatives inside | Read More »
Raising Taxes… in Return for What?
It’s not like we haven’t been through this recently. In fact, we’ve seen this rodeo less than 18 months ago. When will Republicans learn their lesson? Republicans came to power in 2011 promising to put a stop to Obama’s addiction to spending and growing government. They pledged to cut $100 billion immediately. They had a number of opportunities to leverage their control over the budget | Read More »
Republicans Beclown Themselves With Sequester
Last week, I was watching the House debate over the sequester replacement bill, and was struck by the effectiveness of Chris Van Hollen’s attacks against the Republicans. Their absurd gyrations of ideological inconsistency have exposed them to pungent attacks from Democrats. Honestly it’s hard to defend them against those attacks. Pursuant to the Budget Control Act – the absurd debt ceiling agreement from last year | Read More »
The Debt Ceiling Deal One Year Later
As we approach the 1-year anniversary of the disastrous debt ceiling deal hatched late last July, it is worthwhile to reflect on what we have gained from that legislation. On August 1, 2011, the House passed the Budget Control Act with support of 72% of the Republican conference. The Senate followed suit on August 2, with support of 60% of the Republican conference. Buoyed by | Read More »
It’s Deja Vu All Over Again With Debt Ceiling Fight
“ Once the Democrats know that the debt ceiling will invariably be raised, they have no incentive to play ball. The end result will be another raw deal that is worse than doing nothing.” There is much hullabaloo in the media about John Boehner’s shot across the bow in the upcoming battle over the debt ceiling this fall. Specifically, Boehner warned that he “will again | Read More »
Get Ready For Another Budget Battle
When Republicans caved on raising the debt limit last year, we referred to the final Boehner proposal as a ground ball into a double play. Not only did Boehner fail to secure any transformational change in exchange for raising the debt ceiling (except for cutting the military), he actually obviated our leverage in future budget battles. As part of the debt limit agreement, Congress passed | Read More »
Mitt Romney’s Debt Ceiling Deception
For the most part, last night’s debate was refreshing in the sense that the candidates were honest about their lack of conservatism. Santorum, Gingrich, and Paul affirmed their support for some aspect of earmarking (although some parsed words), Rick Santorum owned up to his support of No Child Left Behind, Ron Paul unabashedly enunciated his support for Iran’s nuclear program, and Newt Gingrich also confirmed | Read More »
New Debt Limit Brings New Opportunity for Cut, Cap, Balance
When Republicans agreed to raise the debt ceiling last year, not only did they credit Obama’s credit card by $2.1 trillion, they also gave him a lifeline until after the election. At the time, it was projected that $2.1 trillion in new debt allowance was sufficient to last until January 2013, sparing Obama the embarrassment of raising the debt ceiling right before the election. Well, | Read More »
The Budget Out-of-Control Act in Numbers
Earlier today, the House voted to disapprove of Obama’s request for an additional $1.2 trillion increase in the debt ceiling. Needless to say, they failed to garner the requisite two-thirds majority to preclude Obama from issuing more debt. The total federal debt will inexorably rise to at least $16.4 trillion by the end of the year. But wait. Didn’t we pass a Budget Control Act | Read More »
The Chickens of Debt Ceiling Deal Have Come Home to Roost
Today, the Treasury Department announced that Obama will ask for another $1.2 trillion increase in the debt ceiling, carrying our national debt to $16.394 trillion by next year. This will bring Obama’s total share of the debt to $5.77 trillion by the end of his tenure, far more than any other president. Unfortunately, there is not a darn thing we can do about it. Yet, | Read More »