Double trouble: House GOP eyes default, shutdown
House Republicans are seriously entertaining dramatic steps, including default or shutting down the government, 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, though GOP leaders think shutting down the government is the much more likely outcome of the spending fights this winter.
Continue Reading“I think it is possible that we would shut down the government to make sure President Obama understands that we’re serious,” House Republican Conference Chairwoman Cathy McMorris Rodgers of Washington state told us. “We always talk about whether or not we’re going to kick the can down the road. I think the mood is that we’ve come to the end of the road.”
(Also on POLITICO: House GOP's fiscal split looms large for Obama)
Republican leadership officials, in a series of private meetings and conversations this past week, warned that the White House, much less the broader public, doesn’t understand how hard it will be to talk restive conservatives off the fiscal ledge. 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 or closing down the government.
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. Many more members, including some party leaders, are prepared to shut down the government to make their point. House Speaker John Boehner “may need a shutdown just to get it out of their system,” said a top GOP leadership adviser. “We might need to do that for member-management purposes — so they have an endgame and can show their constituents they’re fighting.”
The country would eventually default if House Republicans refuse to raise the debt limit, which the Treasury estimates will hit in late February or early March. The government would shut down if House Republicans instead were to refuse to extend the law funding current government operations on March 27.
(Also on POLITICO: Wall Street on D.C. drama: Zzzzz)
Boehner assumes he can ultimately talk members out of default, but he is so wounded and weakened from last month’s tax-hike battle that the speaker might very well be wrong. Obama assumes Republicans would never be so foolish as to put the economy at risk to win a spending fight. Conservatives say he’s definitely wrong on that score. They say he’s the foolish and reckless one for piling up $6 trillion in debt on his watch.
The coming spending fights make the Christmastime tax increase battle seem like child’s play. While everyone knew the tax drama would end with the rich paying more taxes, no one can telegraph how the coming spending fights will unfold. And the economic stakes are more dire.
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“For too long, the pitch was, we’ll deal with it next time,” said Rep. Jason Chaffetz, a conservative from Utah. He said GOP lawmakers are prepared to shut things down or even default if Obama doesn’t bend on spending. “No one wants to default, but we are not going to continue to give the president a limitless credit card.”
Starting Monday, Boehner will huddle with his leadership team to discuss his preliminary thinking on a spending strategy. A source who attended meetings to prepare for those private talks said GOP leaders are authentically at a loss on how to control members who don’t respond to the normal incentives of wanting to help party leaders or of avoiding situations — like default — that could be public relations nightmares.
Readers' Comments (617)
If the Republicans Party wishes to commit political suicide, then let them do it.
“We might need to do that for member-management purposes — so they have an endgame and can show their constituents they’re fighting.”
Please proceed, teabagger republicans....
THE COOK REPORT
Congressional Republicans Are Striking Out
John Boehner and Co. have to recognize that their style of play isn’t going to win them many games.
http://nationaljournal....
Whether that assessment is fair and justified is almost beside the point. Congressional Republicans need to recognize that either they’re committing more errors than Obama and the Democrats or that their style of play is such that they are losing the calls. They need to realize that the public doesn’t like the way they’re playing the game. The spectators are booing them more than they are the other team.
Between now and the end of March, Washington will face the equivalent of the fiscal-cliff challenge multiplied by three: automatic spending cuts known as sequestration if serious budget cuts aren’t enacted; default if Congress doesn’t raise the debt limit; and an expiration of funding for day-to-day operations of the federal government for the rest of the fiscal year if Congress doesn’t approve another continuing resolution. Nothing in the past month suggests that resolving this triple threat will be easy.
Government shutdown worked well for Republicans last time when Gingrich was Speaker.
Please get the story straight. Not raising the debt ceiling does not at all mean we default on our debts. It means that we have to prioritize our spending to match tax revenues, of which we supposedly have more now due to the Obama tax increases. Our debts will still be paid on time.
End the FED. Abandon the Dollar. Have the Treasury print "greenbacks".
When Boehner is faced with the choice between shutting down the government or jettisoning the Hastert rule it's the Hastert rule that will go. Either course will mean civil war in the Republican party. But a government shutdown will take the whole party down. Breaking the Hastert rule will only break the Tea Party. And it will enable some Republicans to make the case that there are still some adults in the party.
Like the coin idea, this sounds like so much posturing.
Shut it down, this ******* needs to be stopped. 16 Trillion in debt is out of control and the morons in the Senate seem to think its great and we have no problems.
Shut it down for the rest of the year.
Please get the story straight. Not raising the debt ceiling does not at all mean we default on our debts. It means that we have to prioritize our spending to match tax revenues, of which we supposedly have more now due to the Obama tax increases. Our debts will still be paid on time.
You're dealing with Liberals here.........
Although your point is obvious, it's WAY over their heads..............
Tea baggers just want to hurt America.
I know, but the truth still needs to be plainly articulated.
Enough of these people. Enough of this governing by hostage.
I think that the Republicans should allow the country to go into default and at the same time shut own the US government. History often repeats itself. If they are that irresponsible, the Republicans will splinter and the WHIGS, yes, the Modern Whig Party will rise out of the ashes and replace the GOP as a mainstream political party focused on Service and Solutions.
The Treasury will issue scrips to pay our bills. It will rattle the markets and will be a huge inconvenience for everybody involved but it will avoid complete financial and economic collapse that actual default on our debt would entail. I look forward to hearing Republicans explain to social security beneficiaries why they are receiving IOUs instead of actual checks. And if they want to shut down the government so there aren't any workers to print and mail out the scrips, well we all know how the whole "shut down the government" thing worked out for Newt Gingrich and the Republicans.
Irrespective of personal politics and to give credit, where credit is due: Thank you, Mr. Vandehei and Mr. Allen, for your cogent, prescient assessment.
So the whupping the GOP got in November wasn't big enough. "Maybe if we threaten to shut down the government and crash the economy again, the voters will really love us." I think the GOP has been watching old videos of Dick Cheney shooting his GOP pal in the face with a shotgun.
Go ahead and gamble Repubs!! Do you feel lucky???
I look forward to hearing Republicans explain to social security beneficiaries why they are receiving IOUs instead of actual checks.
You mean the truth? Because we don't have the money?
Next time is NOW.
The Democrats can play Lucy and the Football all they want...until the Republicans take the football away from them.
Time to sell-off the Presidential Aircraft Fleet.
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