In his recent speech, House Speaker John Boehner doubled-down on his own arbitrary “line in the sand” — dubbed the ‘Boehner Principle,’ no less: One dollar of spending cuts for every dollar the debt ceiling increases, or the debt ceiling does not increase. The following statement stuck out:
Yes, allowing America to default would be irresponsible. But it would be more irresponsible to raise the debt ceiling without taking dramatic steps to reduce spending and reform the budget process.
It stuck out because it is fundamentally unserious nonsense. It is 100 percent, no question about it, worse and more irresponsible on the part of the US government to allow America to default than it would be to kick budget reform down the line. Yes, spending and tax reform will need to happen, sooner or later. But allowing the US to default on its obligations would be catastrophic in its consequences. Catastrophic. It blows my mind the Speaker of the US House of Representatives does not understand this.