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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]The fundamental problem here is that McCarthy does not have the votes for any deal he cuts with Biden, but he does not seem to recognize that fact.  30-50 of his members are extreme wackos who will vote against anything, and the Rs don't control the Senate (and there are probably 10 Rs in the Senate who are extreme wackos who will vote against anything).  So he's got to cut a deal that will get 50 plus D votes in the House and 30 plus D votes in the Senate.  But he's not offering the Ds anything at all.  He won't reform prescription drug pricing, won't close the carried interest loophole, won't increase taxes on wealthy, and won't cut defense spending.  Negotiation means both sides get something and give up something.  But it's just demands from McCarthy with no give.     [/quote]

Agree with your analysis -

Do you think there is any hope for 14th amendment or other solution to resolve this crisis?[/quote]

The 14th amendment idea seems dumb to me.  Not a lawyer so I don't know what the courts would ultimately say, but I don't really think that matters because the market reaction would very likely be bad because the debt may turn out to be illegal.  That would cause many of the same problems as a default.

If I'm the admin, I'm looking at two options.  First is stopping payments to contractors, hospitals, state governments, and big businesses.  These folks have the ear of republicans and stopping those payments won't immediately have too bad economic outcomes.  Second is trying to find some more "extraordinary measures" that would let me push the X date into the fall past Sept. 30.  That would drive this into the regular budget season where it could be resolved under the normal government shutdown threats, and where Biden will have a strong hand to blame the Rs for the shutdown.[/quote]

Since the 14th Amendment requires our DEBT to be valid, the Treasury should continue to make interest payments on the Treasury debt. But refuse to make any other payments, and let all those private businesses who rely on government funds go to court and argue that their debt is valid too.[/quote]

Those private businesses have contracts and are billing for services rendered. The US cannot just not pay them.[/quote]

Once it runs out of cash, what else is it going to do?  The GOP won't let the US borrow more money and won't let it get more money thru taxes.  There's no other option other than stop paying.[/quote]

And then the courts will force payment with interest.  We can't just break contracts like that.[/quote]

Sure, probably in a year or two they would get a judgment, but the debt ceiling will have been resolved by then.  And if it hasn't, that judgment still won't get paid if there is no cash to pay it.  No court is going to order congress to raise taxes or raise the debt ceiling.  [/quote]

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