House GOP willing to test market reaction of default

[^_^ 5,021]

House Republicans are seriously entertaining dramatic steps, including default ... to force President Barack Obama to finally cut spending by the end of March.

The idea of allowing the country to default by refusing to increase the debt limit is getting more widespread and serious traction among House Republicans than people realize.

...

To the vast majority of House Republicans, it is far riskier long term to pile up new debt than it is to test the market and economic reaction of default.

...

GOP officials said more than half of their members are prepared to allow default unless Obama agrees to dramatic cuts he has repeatedly said he opposes.

http://www.politico.com/story/2013/01/behind-the-curtain-house-gop-eyes-default-shutdown-86116.html?hp=t1

[Usui Takumi 1,562]

[quote name=' timestamp='1358182583' post='5921226]

House Republicans are seriously entertaining dramatic steps, including default ... to force President Barack Obama to finally cut spending by the end of March.

The idea of allowing the country to default by refusing to increase the debt limit is getting more widespread and serious traction among House Republicans than people realize.

...

To the vast majority of House Republicans, it is far riskier long term to pile up new debt than it is to test the market and economic reaction of default.

...

GOP officials said more than half of their members are prepared to allow default unless Obama agrees to dramatic cuts he has repeatedly said he opposes.

http://www.politico.com/story/2013/01/behind-the-curtain-house-gop-eyes-default-shutdown-86116.html?hp=t1

So there are three phases to this right?

We are currently in Phase 1 - Creative bookkeeping, next phase would be government shutdown, park the aircraft carriers etc. and that keeps us going through to when August? then default?

[The Nature Boy 4,224]

[quote name=' timestamp='1358182583' post='5921226]

House Republicans are seriously entertaining dramatic steps, including default ... to force President Barack Obama to finally cut spending by the end of March.

The idea of allowing the country to default by refusing to increase the debt limit is getting more widespread and serious traction among House Republicans than people realize.

...

To the vast majority of House Republicans, it is far riskier long term to pile up new debt than it is to test the market and economic reaction of default.

...

GOP officials said more than half of their members are prepared to allow default unless Obama agrees to dramatic cuts he has repeatedly said he opposes.

http://www.politico....6116.html?hp=t1

Good. we have been raising the debt ceiling time and time again, with promises of debt reduction later. it's time to tie raising the ceiling to dramatic cuts.

[I AM NOT THAT GUY 5,715]

Since the last time we "defaulted", but didn't really default, the market for US securities has improved, despite being downgraded by two ratings agencies, so bring it on!

[I AM NOT THAT GUY 5,715]

Higher interest rates for US securities would help baby boomers like me, that have no outstanding debt, but would like to be flipping CD's around the same rates our parents were just a few decades ago.