From the desk of Johnny Fincioen
Sat, 2011-06-25 12:38"
The Brussels Journal
The moment of truth approaches. Obama needs more money urgently. This end of July all the (borrowed) money of the Federal Government is spent. The law sets the debt ceiling at a bit over 14 trillion dollars. Obama is unable to borrow more. He can’t push the US deeper in debt. Very soon, he won’t be able to pay for current expenses. That’s why he’s asking the Congress to raise the debt ceiling with at least two trillion dollars. The Republicans, in control of the House, accept to raise the ceiling under two conditions. First: only if the government is ready to cut spending over the next 10 years with a sum at least equal to the amount of the raise. Second: if taxes are not raised.
On Thursday, the negotiations collapsed between Obama and his fellow Democrats on one side, and the Republicans in Congress on the other side. Reason: the Democrats are only willing to cut some spending if they are allowed to raise the taxes. This deadlock obliges Obama to take initiative, to formulate a proposal. But, he hates making a first move. He prefers to ‘lead from behind’. He likes others to do the hard work. Recent examples of this attitude: Libya, Obamacare, etc.
If Obama and the Republican Congress don’t reach an agreement, Obama will have to make some hard choices...
Who Will Blink?
Since all options in the case of a non-raised debt ceiling are rather disastrous for the US, almost all pundits and observers believe the ceiling will be raised. The only question is: who will blink?..
At the last possible moment, end of July, Obama appears on TV to state his will to cut
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