
white flag (Photo credit: portobeseno)
I wrote yesterday about a memo that the Conservative Action Project sent to House Republicans meeting in Williamsburg to plot strategy against Obama’s continued demands for higher taxes. They ignored the memo, and surrendered.
House Republicans revised their strategy for the coming months’ fiscal debate with Democrats, saying they’ll agree to a three-month debt-limit increase without demanding spending cuts as part of the deal.
This fits perfectly with Mish Shedlock’s prediction that they would surrender. He was just surprised at how quickly they folded. So am I. Wrote Mish:
Let’s review my precise call.
Politics of the Debate
- Obama will chastise Congress with talk of financial Armageddon if Congress does not raise the debt ceiling.
- Congress will pretend to hold the president hostage
- The secretary of the Treasury will get into the act with its own version of the default debate
- Perhaps a few payments on non-critical budget items will be temporarily skipped
- Wall Street will feign panic
- Constituents will pressure Congress to approve a new debt ceiling
- Congress will raise the ceiling with another useless warning about next time
The GOP followed Mish’s call to the letter, completing steps 1 through 3.
But then, Republicans bypassed steps 4-6 and skipped straight to step 7 without a fight.
From the Bloomberg article, Boehner used
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