The fight over the federal shutdown, in which Barack Obama pronounces himself ready to negotiate with atomic ayatollahs in Tehran but not Republicans in the House of Representatives — the body constitutionally empowered to manage budgetary concerns — is a prelude to the coming fight over the statutory debt ceiling. How either of those will play out politically is anybody’s guess, though one should never underestimate the Republicans’ ability to screw up being on the right side of an issue.
While there is panicky talk of default in Washington, the financial markets give no indication that they are expecting a default on Treasury bonds, which is only sensible: Even without extending the debt ceiling, current revenues are more than enough to cover debt payments, several times over. There are technical concerns within the federal government that complicate the issue, but debt ceiling or no debt ceiling, the money is there to make interest payments. Surely an administration that came into office on the heels of a financial crisis and claims the unilateral power to assassinate American citizens is not waiting on Congress to tell the Treasury Department how to perform its most elementary function? Surely the American people, in their wisdom, would not elect such irresponsible amateurs to high office? (Twice?)
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