Speaker of The House John Boener has indicated that he will, once again use the deadline to increase the nation’s debt ceiling as leverage to coax concessions out of President Obama and the Democrats. The Speaker is eager to see progress on paying down the nations’s debt through measures that Democrats have opposed.
The Debt Ceiling, refers to a cap on the nation’s ability to borrow money. However, it is not a reference to future debt or spending. Raising the current Debt Ceiling pays debts already accrued by the nation. In other words, it pays for the spending the congress has already authorized. The failure to raise the Debt Ceiling is much like running out of a restaurant, after ordering and consuming a meal. The refusal to raise the Debt Ceiling is a signal to the markets that America is not going to honor her debts.
The Republicans have already tried this maneuver. The result was a stock market crash and it inspired credit rating agencies to issue a downgrade of the nation’s (former) triple A Credit rating. The move by Boener has many asking if the Republicans have committed themselves to a strategy to intentionally crash the nation’s economy, ahead of the November elections.
Early, in President Obama’s Presidency, many republicans openly stated that they “Hope The President Fails” in his efforts to restore the economy, which they deemed to be akin to socialism. Some have suggested that the GOP may have moved from Hoping Obama Fails, to proactive action to Ensure That He Fails.