Real Debt Reduction Will Require Bipartisan Negotiations
sherylrivlinandallanrivlin.substack.com
Our last post argued that the divided and chaotic GOP House has no power to require Democrats to negotiate spending cuts in response to the empty threat of a US national debt default. It will not be the Democrats, but rather it will be the bond markets and credit rating services, that force the Republicans to yield to the reality that they will be blamed for crashing the global economy if they crash the global economy. Causing a global depression is obviously neither good policy nor good politics. President Biden has all the leverage and can refuse to negotiate with Speaker of the House Kevin McCarthy (R-CA).
Real Debt Reduction Will Require Bipartisan Negotiations
Real Debt Reduction Will Require Bipartisan…
Real Debt Reduction Will Require Bipartisan Negotiations
Our last post argued that the divided and chaotic GOP House has no power to require Democrats to negotiate spending cuts in response to the empty threat of a US national debt default. It will not be the Democrats, but rather it will be the bond markets and credit rating services, that force the Republicans to yield to the reality that they will be blamed for crashing the global economy if they crash the global economy. Causing a global depression is obviously neither good policy nor good politics. President Biden has all the leverage and can refuse to negotiate with Speaker of the House Kevin McCarthy (R-CA).