John Boehner and President Barack Obama
(Photo credit: The Telegraph, UK)
I think We have a deal
It appears the debt ceiling will be raised. There is a deal. No one knows the details of this deal, except Washington, but a default has been avoided.
http://www.bbc.co.uk/news/world-us-canada-24558615
Yet, I am afraid. I heard Mr Boehner, courtesy of the BBC. He mentioned the Affordable Care Act, but called it what it should no longer be called: Obamacare. The name of the programme is the Patient Protection Affordable Care Act, or ACA, and it is a long-awaited health-insurance plan.
Warren Buffet: “It would be ‘asinine’ if US defaults.”
I listened to Warren Buffet. He stated that the “house” would no longer use a government shutdown to negotiate a rise in the debt ceiling.
http://www.nbcnews.com/business/warren-buffett-it-would-be-asinine-if-us-defaults-8C11403074The Deal
All I know about the deal is that, although it will “pass,” it is a short-term arrangement. I expect therefore that we will soon be watching a replay of the drama that is currently ending. When “negotiations” resume, there may not be a government shutdown, but I do not think extremist Republicans will ever want to fund the Affordable Care Act. As for the rich, they will continue to oppose paying their fair share of taxes.
The Raises
Here is the history of the United States debt ceiling, from Wikipedia.
http://en.wikipedia.org/wiki/History_of_United_States_debt_ceiling
US government indebtedness has been the norm in United States financial history, as well of most Western European and North American countries, for the past 200 years.
- The US has been in debt every year except for 1835.
- Debts incurred during the American Revolutionary War and under the Articles of Confederation led to the first yearly report on the amount of the debt ($75,463,476.52 on January 1, 1791).
- Every President since Herbert Hoover has added to the national debt expressed in absolute dollars. The debt ceiling has been raised 74 times since March 1962,including 18 times under Ronald Reagan, eight times under Bill Clinton, seven times under George W. Bush, and five times under Barack Obama.
Conclusion
This is a brief post. I will end it by saying that I am delighted the crisis is over. We can breathe again. However, we have now seen an episode of obstructionism: a government shutdown. I just hope President Obama will not be blamed. That would be scapegoating. Who knows, President Obama may have gained supporters.
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Marc-André Hamelin plays George Gershwin – Songbook (18 Songs)
© Micheline Walker
October 16, 2013
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