Look at the steepness of the curve, the maturity of the Treasury debt, and the frequency of debt limit votes. His plan for more spending goes nowhere when each additional spending triggers a short term Congressional scramble to adjust current expenses. He can't get the tax increase without threatening Dem sacrosanct programs. Congress and the Executive will be swamped with calls from one or more bankrupt states. Credit Suisse estimates up to $320 billion in GSE (Mortgage backing government agencies) in the next two years.
World Economic Forum says we need another $2 trillion from foreign lenders to avoid collapse of the major banks. Citigroup and BofA teeter. At this point, any significant debt increase will alert the lenders.
The likelihood that Congress an Obama can invent something productive enough, in time to save us is zero. Nor can Obama plead that we need to borrow to pay debt service. The only role available for Obama is major structural reform. Go ahead, blame Bush and Reagan, I do, but Obama is still stuck the mess.
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