Bifurcation and bif*ckation

[meradudd]

Mark Zandi, chief economist for Moody's and former McCain economic advisor recently spoke at a breakfast held by the Christian Science Monitor.  At that breakfast, he laid out two economic futures that are substantively different.  (source)

In the first future, the US GDP will have grown by 4% by the end of the year, unemployment will be on the

Comments

[meradudd]

I'm not so sure about the 'complicated' part. When it comes to the debt ceiling, it's pretty simple. Congress authorized these expenditures, KNOWING what would happen, and is now balking at the price-tag. Either make good on the bills (raise the ceiling) or the US Government will run out of that 'good faith and credit' which backs the almighty dollar

[meradudd]

What would the Fed do? Either go into partial shut-down or default on debt payments. I'll bet $5 I don't have that the former would occur

[pedropadrao]

As a Washingtonian, I have to say that there are times when Twain's quip, "Suppose you were an idiot, & suppose your were a member of Congress-but I repeat myself.", has the ring of truth. Nearly all of these guys have at some point or another voted for the debt limit to be raised, & some have taken the calculated minority stance in order to tell their constitutents that they've voted for fiscal responsibility, as they know that most of their colleagues would vote to raise the limit, kin order to eep the shop open.

The CRS-Congress' own think tank-recently wrote a report on the consequences of not raising the debt limit. It's online at: http://opencrs.com/document/R41633/2011-04-27/. Page 9 is of particular interest, as it outlines the differences between not raising the limit & not passing a budget or continuing resolution.