- If the government does not get its debt increase it must immediately balance the budget. This is good, not bad, in the intermediate and longer term.
The problem is that this situation also exposes the truth, which nobody wants to face in Congress: Whether you raise taxes or cut spending the economic impact is the same - 12% of GDP disappears.
Whoops! If 12% of GDP disappears, Obozo will get run out of office long before 11/12. Of course, most of Congress could suffer the same fate.
So. What's the problem with THAT?