Compromise is in the Air

The last election is driving the GOP. There is still an internal battle but the far right wing is losing. It was their policies that have produced the hammering they took in the 2012 election. There will be much posturing and speeches but the Congress will work together on:

  • foreign policy
  • the budget battle
  • sequestration; NO
  • govt shutdown; NO
  • guns and 2nd Amend…background cks: YES;
  • assault rifle ban: ??? but I think YES

Boehner doesn’t want to be regarded as a failed Speaker of the House and will have the support of business. They both recognize that the GOP will diminish if the far right wing is allowed to gain more power. They created a monster and it needs to be disciplined.

Foreign policy will also drive this because of all the threats around the world. From North Africa to Pakistan, Syria and Iran. China and Japan fencing over islands…or trying to secure sources of oil. If other countries think that we can’t afford to help ourselves (food stamps, Medicare, Medicaid etc) why will they believe that we can afford to continue to oppose them.


As Thomas Edison astutely observed:
“If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good, also. The difference between the bond and the bill is that the bond lets money brokers collect twice the amount of the bond and an additional 20%, whereas the currency pays nobody but those who contribute directly in some useful way.
It is absurd to say that our country can issue $30 million in bonds and not $30 million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people.””

From an earlier post as a comment on another blog:

United States can not default. We are a Monetarily Sovereign Nation and control our own currency. We need Modern Monetary Theory or MMT.

New Economic Perspectives |
See Greenspan and others:
“The United States can pay any debt it has because we can 
always print money to do that. So there is zero probability of default.”
Alan Greenspan
“In the case of United States, default is absolutely 
impossible. All U.S. government debt is denominated in U.S. dollar 
assets.” Peter Zeihan, Vice President of Analysis for STRATFOR
“In the case of governments boasting monetary sovereignty 
and debt denominated in its own currency, like the United States (but 
also Japan and the UK), it is technically impossible to fall into debt 
default.” Erwan Mahe, European asset allocation and options strategies adviser…


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