Ken
Obama clearly miscalculated. But note that he was the one who brought on the
debt ceiling crisis. That was his choice. He could have avoided by it by
having tied the extension of the Bush tax cuts to a raising of the ceiling.
But he did not do that because he wanted to tie a raising of the ceiling to
a long term debt reduction plan. He thinks (or maybe knows) that this is the
key to keeping the Chinese and other intl investors confident in the US bond
market, and their confidence is the most effective stimulus that the economy
has.
Obama miscalculated because he had not understood how far the Tea Party was
from Republicans that he knew like David Brooks. Brooks jumped at the
opportunity for such massive entitlement cuts for the little tax increases
that Obama was trying to impose for the financing of infrastructure. Obama
thought that he had given the Republicans a deal that would allow them to
appear as heroes, and that sensible Republicans would impose on the junior
TeaBaggers to go along. He really did believe that it was the best deal for
the country because  the best thing for the country is to keep the intl bond
markets in love with US debt.
The fact of the matter is that the Rubin Wall Street plan is better than the
designs of the Tea Bagger coalition of the Koch brothers, forty million Joe
the Plumbers and another twenty million senile racists.
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