A warm-up to what I suspect will occupy a lot of media space this upcoming week.
It’s worth reminding everyone over and over in the coming days what most establishment reporters will not or cannot. Kevin McCarthy and the House GOP are holding the federal govt and the US constitution hostage. They have issued a series of demands and said that if their …
— Josh Marshall (@joshtpm) April 28, 2023
2/ demands are not met they will force the US government into bankruptcy for the first time in almost 250 years. Here’s how they plan to do it. Congress already passed a law requiring Joe Biden to spend money to run the federal government. The GOP House now proposes to make …
3/ it illegal for President Biden to get the money he needs to buy the things Congress passed a law forcing him to buy. This isn’t budget making. It’s just more parliamentary terrorism. It will crater the US crater, the global economy, violate the US constitution and …
4/ imperil the US’s privileged role in the global order. But you will hear lots of reporters say that since Kevin McCarthy has now sent out a list of demands from the bank vault where he’s holding the hostages that he’s done the responsible thing and Joe Biden must …
5/ negotiate with him because McCarthy is acting in “good faith”. There’s no such thing as good faith hostage taking. There’s no responsible way to engage in parliamentary terrorism. You can’t negotiate with terrorists. There’s an actual budget process where these questions …
6/ get hashed out. That’s for next years budget. It’s not a good faith negotiation if one side has a gun to the hostage’s head. We shouldnt let anyone forget that’s what’s happening.
For the IRA it's worse than that. Killing the IRA isn't their threat. It's their demand. If Biden doesn't kill the IRA they'll force the Govt to default.
— Josh Marshall (@joshtpm) April 29, 2023
another media coverage failure:
to make crystal-clear that, if default crisis occurs, it will be because House Republicans chose it
their turn toward extremism has created the threat
it's not about the economy or even the debt
if it were, they'd have forced Trump to deal w/it https://t.co/mVp9tnN7Uv
— John Harwood (@JohnJHarwood) April 29, 2023
without even reading, you’re right. Rs are totally ready to shoot their hostage. Meanwhile Ds see it as one of their foundational lessons of the last generation that they will never get played like they were in 2011; won’t negotiate w parl terrorism. Hard to span that divide.
— Josh Marshall (@joshtpm) April 29, 2023
From Paul Kane’s article (unpaywalled gift link):
… Graves believes that McCarthy has done his job by winning approval for a bill that would lift the debt limit into next year while also imposing nearly $5 trillion in reduced spending. Coons dismissed that “gauzy, broad but unspecific” House proposal as merely an attempt at holding the full faith and credit of the U.S. Treasury hostage.
Like other Democrats, Coons is willing to haggle over federal spending levels in the annual process for funding federal agencies in the House and Senate Appropriations committees. But that negotiation can only begin once Republicans agree to separately raise the debt limit without any strings attached.
Congress has oftentimes raised Treasury’s borrowing authority without any strings attached, as lawmakers did twice in 2021. But in times of divided government, the debt limit has often been raised as part of a broader budget deal, as it was in 2019 under House Speaker Nancy Pelosi (D-Calif.) and in 2011 under Speaker John A. Boehner (R-Ohio).
That Coons, 59, and Graves, 51, are taking these diametrically opposed views should make Wall Street titans pay much closer attention to this political game of chicken…
One missing ingredient to all this bluster is an official deadline, something that will hopefully come very soon from Treasury Secretary Janet L. Yellen. Once analysts have finished the incoming and outgoing cash flows of tax season, Yellen can issue what insiders call the X date for the deadline when Treasury will run out of budget gimmicks for handling the more than $31 trillion national debt.
Congress, in this era, simply doesn’t take things seriously until there’s a formal deadline, so it’s possible that cooler heads will prevail when countdown clocks start to appear on cable news shows…
Agreed. McCarthy keeps asking “what changed?” between 2011, when Biden spearheaded negotiations; and today, when he won’t negotiate. The answer is: he learned his lesson from last time!
Giving in to hostage-takers encourages more hostage-taking https://t.co/vwiWOb1IGZ
— Catherine Rampell (@crampell) April 29, 2023