[Peace-discuss] A deal to avoid default?

[C. G. Estabrook]

[Simple truth from a posting to the lbo-talk list. --CGE]

                ...Of course, no deal is needed at all to
avoid default or the threat of default.  The President has all the
legal authority necessary to avoid default, and he knows it.  At any
point this year Obama could have simply told the people, the congress,
and the "markets": "The USA will not default.  I have all the
constitutional and statutory authority necessary to maintain the full
faith and credit of the United States and I will use that authority.
There will be no default no matter what the obstructionists in the
House majority do or don't do.  All the governments bills will be
paid. There will be no default."

So why didn't he say that?  Isn't it obvious?  His enforcer once said
"a crisis is a terrible thing to waste,"  and if Obama had no crisis
big enough to lay the ground for the Wall-Street austerity program he
(together with his GOP frenemies) wants to impose then he and they had
to invent one.  Which is where we're at.

--Shane Mage