Dear President Obama

Well, it’s been a week since I last post­ed on this sub­ject (or any sub­ject!). So we must be one week clos­er to the day the fed­er­al gov­ern­ment runs out of mon­ey. Are we clos­er to an answer?

So, where does that leave us? The House won’t pass a clean bill; it won’t pass a Grand Bar­gain; it won’t pass the Gang of Six pro­pos­al; and at least 80 House Repub­li­cans are pre­pared to try to kill the Plan B compromise.

It would seem we are not. Pres­i­dent Oba­ma has not (yet) tak­en my advice from a week ago (could it be he does not read my blog?!?!). I stand by it with one addition.

Dear Pres­i­dent Obama,

You should announce tomor­row that it is clear that the dead­line will not be met and that it is your inten­tion to see to it that all the debt oblig­a­tions of the Unit­ed States will be met, inter­est and prin­ci­ple. Prin­ci­ple will be met by pay­ing off what is imme­di­ate­ly due and then bor­row­ing that much again to do the same tomor­row (there­by nev­er exceed­ing the debt lim­it but also mean­ing that the process is going to start soon­er than August 2). You then should make it crysal clear what will not be paid. You should do this in a speech, in a press con­fer­ence, in a press release, and you should send admin­is­tra­tion offi­cials to the Sun­day (and any oth­er) talk shows to explain what will not be paid.

Obvi­ous­ly, you will have to explain again (and again) that this sit­u­a­tion exists because the Repub­li­can House decid­ed it was what they want­ed and that they refuse to nego­ti­ate insist­ing that they get 100% of what they want.

This will cause a lot of con­ster­na­tion, some short term hard­ship, and some short and long term eco­nom­ic costs. It is absurd that the sit­u­a­tion exists at all . There is, how­ev­er, a dim sil­ver lin­ing com­prised of the fun of see­ing House Repub­li­cans trip­ping over them­selves as they rush to raise the debt ceil­ing after the start to hear from their constituents.

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