Big Darkness Cometh? You betcha!

[El Prezidente Kaboom]

The Reid-McConnell plan (a combination of no revenues,1.5 trillion in cuts/ 10 years + political theater for Republicans to hide behind, while "devolving" congressional authority to the president to initiate a debt-ceiling raise) is the only option left on the table with any bipartisan traction. The Senate's Gang of 6 plan is too far for the Democrats and the House GOP's "cut, cap, and balance" is further--this while the president's own plan isn't ranked much higher by his own party. With no agreement on strong revenue components, Dems will not concede to massive cuts. But throwing in the smaller cuts outlined by VP Biden's working group to get the McConnell plan to pass and avoid a constitutional showdown over default--not ideal for Obama 2012--is politically preferable to invoking the 14th amendment (or accepting default, obviously). With GOP control of the purse, Democrats can't improve our budget situation, we can only defend it. Thus, minimizing the damage done is the only reasonable goal in this political environment. We're in for the Long Generation of divided government, economic instability, and massive, long-lasting unemployment that will further degenerate our national character and culture. It's the Big Darkness, and it's only just beginning.

[pscot]

1. That doesn't sound good

We're at each others throats, when we should be working together to solve some huge problems. We're pretty fucked up.

[El Prezidente Kaboom]

2. Let me be clear......

I don't believe there is a debt crisis. I'm an MMT-Progressive Deficit Owl. I believe there is a jobs crisis. I don't even like using the term "deficit" or "debt".....they don't relate to government's position as a sovereign issuer of its own currency. Government creates the dollars necessary for the private system to net-save by spending more dollars than it takes out of the private system through taxation.
But the reality is that the GOP has control of the House. Even if Democrats were all united behind MMT-Progressivism, this means squat without the power of the nation's purse. And fact is, Democrats are more confused about our economy and financial system then they are united behind a particular policy for the future.
I side with the Deficit Doves over so-called Deficit Hawks in our current debates; but rest assured, this is a temporal alliance, once the Doves' two-eyed Keynesian kicks in again during good times, showing them to be the true Deficit Hawks, there will be little camaraderie on my part--it will be intra-party war.