Obama on Debt Ceiling Negotiations
Various media outlets have reported on a loophole that would allow the Treasury to mint a $1 trillion platinum coin to pay down the national debt until the government resolve the standoff involving the debt ceiling. Some analysts say that it is not as absurd as threatening default on the debts to force policy changes. But they point out that it could just be a gimmick by the White House.
Some analysts point out that the debt ceiling should be increased to accommodate the debt Republicans voted for in Representative Paul Ryan’s budget, which is $6 trillion for the next decade. They said that Republicans have no interest in controlling deficits during its six years in control of Congress and White House. They are only interested in using the national debt to try and scare people into adopting their unpopular policies.
Speaker John Boehner’s Plan B failed to go through the House. Republicans didn’t want to vote on the tax proposal because it didn’t conform to their ideology. The party wanted to reform the Social Security since the start of the negotiations.
The Congressional Budget Office found that chained CPI that the Republicans were pushing was one of the least effective policy options for extending Social Security’s solvency. The Republicans also want to increase the eligibility age on Medicare but the CBO said it would only lead to minimal savings while affecting the minorities the most.
Republicans tend to prioritize their policies first. They place the debt second and the health of the economy after that. President Barack Obama should keep that in mind when he negotiates about increasing the debt ceiling.
The GOP caucus supported Ryan’s budget and the latest adds $6 trillion in debt over 10 years. By highlighting Republican hypocrisy and duplicity, White House could have the advantage of reaching the best deal for Americans.