Originally Posted by Direckshun
I have read today that the White House and the Treasury have rejected the $1 trillion coin strategy.
Rightly, in my opinion.
The White House has also claimed to reject (a.) negotiating over the debt ceiling, and (b.) raising the debt ceiling unilaterally via the 14th amendment.
So, that leaves us at an impasse.
I put the likelihood of a government shutdown at 50%, a White House unilateral move at 45%, and the odds we strike a deal at 5%.
Failing to raise the debt ceiling wouldn't cause a government shutdown, at least not how we traditionally use that term. It would cause a catastrophic default and massive recession. While most Republicans in the House do seem to find this option acceptable, there is no way Boehner does. In the end, I think he will blink.