Under the guise of yet another debt ceiling debate, Republicans and Democrats will spend much of the week demonizing each other on the Washington stage.
But don't be fooled. This so-called debate will be nothing more than a planned-in-advance sideshow to supply each side with 2012 election campaign fodder.
The deal put in place on Aug. 2 essentially guaranteed that the limit on the U.S. national debt would be raised to $16.4 trillion in January. That means any sound and fury that emanates from Washington this week over raising the debt limit will signify nothing.
"It's pro-forma. They already made a deal to raise the debt ceiling last time around," said Shah Gilani, Money Morning Capital Waves Strategist and author of the Wall Street Insights & Indictments newsletter. "The President has to ask for the increase -- which makes it look like he caused it -- and the Republicans get to display anger that "here we are again.' But it's a game they agreed to earlier."
The deal in August intentionally split the debt ceiling increase into three separate requests to set up these faux debates for public consumption.
U.S. President Barack Obama did his part on Thursday by making a formal request for the $1.2 trillion increase in the debt limit.
That was the cue for Republicans in the House of Representatives to draft a "resolution of disapproval" which they will debate and vote on this week. And given that the GOP has a majority in the House, the resolution is guaranteed to pass.
In this play's next scene, the Democratic-controlled Senate rejects the resolution, which allows President Obama's requested debt ceiling increase to take effect by default - just as all sides envisioned back in August.
And even if a few rebellious Democratic Senators vote with their Republican colleagues, President Obama can veto the resolution. With the odds of Congress overriding a veto near zero, the debt ceiling increase is pretty much a lock.
But the show must go on.
Expect both parties will recycle liberally from the script written during last summer's bitter debt ceiling debate as they play out the charade. The Republicans will again decry the Democrats' fiscal irresponsibility while the Democrats tag the Republicans as extremists unwilling to compromise - talking points that will come in handy on the campaign trail.
The hypocrisy of it all is so blatant even some lawmakers are pointing it out.
"Anyone who supported this deal back in August but then votes to oppose the debt limit increase this upcoming week should take no credit for standing against reckless spending," Rep. Tim Huelskamp, R-KS, grumbled to Fox News.com. "The real opportunity to stand for fiscal responsibility was in August."
News and Related Story Links:
- Money Morning:
The 2012 Election and the Truth Behind the Debt Ceiling Debate - Money Morning:
The Debt Ceiling Debate: Will the Democrats' Gambit Lead to a Victory in the 2012 Election? - Money Morning:
The Debt-Ceiling-Debacle: The Surprising Way a Default or Downgrade Could Crush the Global Economy - Money Morning:
The Painful Consequences of a Debt Ceiling Increase - Money Morning:
Why America Hates Congress - Investors Business Daily:
Inside the latest debt limit fracas: How D.C. pols play us like violins - Reuters:
Obama seeks $1.2 trillion debt limit rise - Capitals and Gains:
White House Formal Request Of $1.2 Trillion Debt Ceiling Increase Will Not Be Disapproved
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About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.
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Looking at the political theater in Washington, how do you want the world abroad to have respect of the US? It is not laughably but highly disquietening!
To say that the debate will have no significant consequence is laughable. There will be significant affect on the perception of the American public and the World public on the actions of Congress as it affects the economy (or even the perception of our economy) and how it affects the world economies.The games played out in Congress in August and the games being played out now in our government have significant affects on both our and world economies. We can no longer depend on our leaders to put the interests of the American people at the top of their agenda. Their only agenda is to line their pockets and to keep themselves in power. And the only recourse "we the people" have is to join the movement to remove them from power. With the knowledge that "they" don't represent us, we MUST vote them out. Not one or two of them, but all of them. The message MUST be that YOU work for US, not for Wall Street or the lobbies or to line your own pockets. Congress must be brought back under the control of the people. It makes no difference which party controls the House or Senate if they realize that "we the people" control the ballet box.
With this in mind, "we the people" have to push for reforms such as Congressional term limits, Congressional pay and "perks", pensions and health care, and making Congress abide by the same rules as the average citizen. No more insider trading, no more selling influence or votes, no more under the table deals. And we need to limit the amount of money any one candidate is allowed to spend to gain office and where that money can come from. It will take time, but "we the people" can with diligence a determination take back our government.
Does anyone really think that Congress (both parties) or the Administration were ever serious about the debt and the deficits? Anyone that cherishes such illusions will buy a bridge to nowhere. The USA is headed for the stone wall at flank speed. There is no other course on the charts.