This is how a Senate GOP aide puts it:
"With the possibility of breaching the debt limit looking more and more plausible as House Republicans struggle to appease their caucus and come up with a plan to re-open the government and increase the debt ceiling, one Senate Republican aide placed the blame on a particular senator from Texas."
"Ted Cruz and his Tortilla Coast Republicans are leading us to a default," the aide told TPM when asked what happens next.
"Cruz reportedly met with a group of House conservatives at Tortilla Coast, a Mexican restaurant in Washington, D.C., to discuss strategy Monday night."
http://talkingpointsmemo.com/livewire/senate-gop-aide-ted-cruz-is-leading-us-to-default
We certainly are on the edge of default as Moody has put us on negative watch again.
"Credit rating agency Fitch placed U.S. holdings, which remain AAA, on negative watch Tuesday, as Congressional negotiations over the federal debt ceiling stalled just two days before a Thursday deadline."
http://talkingpointsmemo.com/livewire/fitch-warns-u-s-on-debt-limit-brinkmanship
Of course, as Mark Zandi tells it's not just about having a magic date written in stone but rather the more time that passes the more confidence is hurt.
"The point is that with each passing day the debt limit is not increased the more damage it will do to our economy. If lawmakers don’t raise the debt limit by November 1, the economy will fall back into recession. If they can't raise it by the end of November, we will be dooming our economy and the entire global economy to a wrenching economic downturn with implications for years if not decades to come."
http://diaryofarepublicanhater.blogspot.com/2013/10/boehners-plan-b-pushing-us-to-brink-of.html
It's hard to believe that over hurt feelings the GOP is going to risk the words The full faith and credit of the United States government, but this is what they'd have us believe.
Meanwhile, with the totally predictable flame out of the House GOP plan, the good news is at least the negotiations with Reid and McConnell are back on track. Question is whether there's going to be enough time-just 30 hours till the deadline Thursday, October 17.
"Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) restarted talks Tuesday evening on a deal to avert default, after House Republicans failed onmultiple attempts to secure support for bill."
"Senator Reid and Senator McConnell have re-engaged in negotiations and are optimistic that an agreement is within reach," said Adam Jentleson, a spokesman for Reid.
"Given tonight's events, the Leaders have decided to work toward a solution that would reopen the government and prevent default," said Don Stewart, a spokesman for McConnell. "They are optimistic an agreement can be reached."
"The two leaders had the makings of a deal before putting it on hold Tuesday in anticipation of possible House action.
http://talkingpointsmemo.com/livewire/reid-mcconnell-restart-talks-as-house-gop-flames-out
This is the most perverse aspect of the silly antics from the House today-it stalled a real deal in the Senate.
"With the possibility of breaching the debt limit looking more and more plausible as House Republicans struggle to appease their caucus and come up with a plan to re-open the government and increase the debt ceiling, one Senate Republican aide placed the blame on a particular senator from Texas."
"Ted Cruz and his Tortilla Coast Republicans are leading us to a default," the aide told TPM when asked what happens next.
"Cruz reportedly met with a group of House conservatives at Tortilla Coast, a Mexican restaurant in Washington, D.C., to discuss strategy Monday night."
http://talkingpointsmemo.com/livewire/senate-gop-aide-ted-cruz-is-leading-us-to-default
We certainly are on the edge of default as Moody has put us on negative watch again.
"Credit rating agency Fitch placed U.S. holdings, which remain AAA, on negative watch Tuesday, as Congressional negotiations over the federal debt ceiling stalled just two days before a Thursday deadline."
"While Fitch said that it remained confident Congress would ultimately reach a deal to raise the debt ceiling ahead of the Oct. 17 deadline, future ratings of U.S. holdings would be dependant on the "manner and duration of the agreement and the perceived risk of a similar episode occurring in the future."
"The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S," the agency added. "This "faith" is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns."
"The prolonged negotiations over raising the debt ceiling (following the episode in August 2011) risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S," the agency added. "This "faith" is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns."
http://talkingpointsmemo.com/livewire/fitch-warns-u-s-on-debt-limit-brinkmanship
Of course, as Mark Zandi tells it's not just about having a magic date written in stone but rather the more time that passes the more confidence is hurt.
"The point is that with each passing day the debt limit is not increased the more damage it will do to our economy. If lawmakers don’t raise the debt limit by November 1, the economy will fall back into recession. If they can't raise it by the end of November, we will be dooming our economy and the entire global economy to a wrenching economic downturn with implications for years if not decades to come."
http://diaryofarepublicanhater.blogspot.com/2013/10/boehners-plan-b-pushing-us-to-brink-of.html
It's hard to believe that over hurt feelings the GOP is going to risk the words The full faith and credit of the United States government, but this is what they'd have us believe.
Meanwhile, with the totally predictable flame out of the House GOP plan, the good news is at least the negotiations with Reid and McConnell are back on track. Question is whether there's going to be enough time-just 30 hours till the deadline Thursday, October 17.
"Senate Majority Leader Harry Reid (D-NV) and Minority Leader Mitch McConnell (R-KY) restarted talks Tuesday evening on a deal to avert default, after House Republicans failed onmultiple attempts to secure support for bill."
"Senator Reid and Senator McConnell have re-engaged in negotiations and are optimistic that an agreement is within reach," said Adam Jentleson, a spokesman for Reid.
"Given tonight's events, the Leaders have decided to work toward a solution that would reopen the government and prevent default," said Don Stewart, a spokesman for McConnell. "They are optimistic an agreement can be reached."
"The two leaders had the makings of a deal before putting it on hold Tuesday in anticipation of possible House action.
http://talkingpointsmemo.com/livewire/reid-mcconnell-restart-talks-as-house-gop-flames-out
This is the most perverse aspect of the silly antics from the House today-it stalled a real deal in the Senate.
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