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BLITZER’S BLOG: Political posturing in Washington worries me about a deal
July 26th, 2011
02:11 PM ET

BLITZER’S BLOG: Political posturing in Washington worries me about a deal

Washington (CNN) –- Now, with only a week to go before the Treasury Department’s August 2 deadline for raising the debt limit, I must confess I am getting increasingly gloomy. I’m very worried no deal will be reached between President Obama and the Republican and Democratic leadership in Congress.

There may be some serious backroom talks going on to achieve an agreement. I certainly hope there are. But all I see in public is a lot of political posturing. If there’s no deal, there will be default, and the consequences will be awful for all of us.

With the deadline looming, cooler heads may yet prevail and some compromise formula might yet emerge. Indeed, until recently, I simply assumed that would happen. But it hasn’t happened yet, and there’s not much time left. Until now, I could not imagine the United States of America being unable to pay its bills.

Unfortunately, I can now imagine that happening, and it’s not pretty at all.

If there’s no deal, I could see a severe drop in the stock markets, a decline in the value of the dollar, higher interest rates and inflation. All of that could push the U.S. economy into another Great Recession. I hope I am wrong and those economists who say the country can in fact absorb the pain of no increase in the nation’s debt ceiling are right. But it’s a huge risk that we shouldn’t need to take.

When White House officials say there might be “economic calamity” for the country if there’s no deal, they might be right.

RELATED STORY: Lawmakers struggle to break stalemate in debt talks

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Filed under: Debt • Politics • Washington • Wolf Blitzer
soundoff (212 Responses)
  1. Basti

    Good Morning Drew, I'm reading a book about the Mossad. These ppolee killed everyone associated with the massacre at the 1972 games in Munich. They never asked the UN about how it should be done or how they should treat these thugs who were given everything they asked for and yet killed all the hostages. It took many years and much planning but every PLO member involved is dead. Mossad knew exactly who they were and made great effort to not kill anyone who was not involved. In one incident in Tunisia, Mossad went into a house and killed just who they were looking for, no one else. Job well done.Will Swoboda

    March 4, 2012 at 8:21 pm |
  2. Pat J Diaz

    The solution to this debt ceiling deal will happen when the traditional Republican loose their fear of the TP and realize that a reasonable deal can be worket out between Democrats and traditionally-minded Republicans. This will probably cause that the TP will be flushed out in 2012. Clarification: by TP I mean Tea Party (not toilet paper)

    July 29, 2011 at 3:55 pm |

      I totally agree with you! The main problem is that traditional minded GOPs can't believe that they can't agree in a bill among themselves! How are they going tp persuade DEMS to Vote for a propose bill if they can't? Anyway, I wish our President could end all this circus with an Executtive Order, and let them Congress get crazy about it!

      July 29, 2011 at 5:06 pm |
  3. Nadean

    I agree that at this point the debt ceiling will not be raised. The TP members are acting like a 3 year old child- there is just no way to reason with them. The Dems and President have compromised and yet the TP members just do not see it. And I don't think they will. We need these people removed from Congress. I hope their districts are filled with people whose mortgages will rise, and who lose med benefits and SS payments. Of course if those people elected the TP reps, then they will blame this all on someone else. I was elated that we have our first black president and I thought our country was really growing up, but it's clear that we are not grown up at all. We have people who are more willing to bring our country to financial ruin than they are to try and work together -and who have said that their first priority is to remove
    Obama from office. It's too bad really. They had a chance for change. Now the proposals are both much less than even they wanted. They shot themselves in the foot because they can't be reasoned with. They can't work well with others!
    That's what this country is about-working together. The TP can't do that-they all need to go home (and bring their toys with them!).

    July 28, 2011 at 10:49 pm |
  4. Nadean

    I don't think there will be an agreement at this point either. There are so many contradictions in what the Tea Party people say, and in what they are doing I don't believe that anyone can reason with them. Putting facts in front of them makes no difference to them. It's too bad – there was a chance for some real change. I whole heartedly believe that President Obama was willing to compromise and he and the Democrats have done so. But the TP members are being so close minded that
    now they have a proposal that is much less than even they wanted. They have already shot themselves in the foot from my point of view. If the ceiling doesn't get raised and our credit rating is downgraded, then the country will have a bigger deficit thanks to the Tea Party people themselves! (Then watch in the next elections, they'll say the increased deficit was the President's fault!). The best thing the real Republicans can do now is to stop trying to even deal with the TP members- completely ignore them and get the RNC to refuse to give them any money for re-election. The name of the game in this country is compromise- the Constitution is a compromise and if these TP people really knew anything they would know that! We need them out of Congress!

    July 28, 2011 at 10:31 pm |
    • Moha

      In the past, news' was local. You know a small town in the middle of Nebraska maybe would hear about imeothsng that happened 100 miles away, but only if it was big news.' So news was literally in the hands of the people. Now with internet, television, radio, mp3 and ipads, news and information is everywhere and all the time I can write a news story! Well what happens is two-fold. First, there's so much information and so many ways of getting it that outlet A, in order to make money, needs to guzzy up the story a bit to make people buy it. And B) the telephone game goes on. And since it's so easy to publish opinions (like I'm doing now), I can write imeothsng about a story, and the next person can, and the next, and then I can write more of my opinion on my own blog, and the next person and the next and all of a sudden the truth (the actual event or story) gets buried under opinions lots and lots of opinions. If you really wanted to solve this problem, we'd literally have to go back about 100 years, break up the huge metropolises, and get rid of computers and global communication. That's my opinion'.

      March 3, 2012 at 8:14 am |
  5. Ray Coyer

    It's time to turn up the heat! How about shutting down the Capitol building's AC so they will know what happens to those who voted for them when they refuse to work together. It's hot here in Indiana, AC is a blessing, I work to keep it going on Social Security. Those who we elected need to stay in touch with us, endure our plight.

    Ray in Indiana.

    July 28, 2011 at 7:16 pm |
  6. Eileen

    QUICK! Change the CNN home page to links to top government officials so that EVERYONE can send their messages about the debt ceiling crisis directly to the politicians who are about to ruin us! CNN... help save our country!

    July 28, 2011 at 2:41 am |
  7. veronica

    I am a baby boomer and just as disillusioned now as I was in the 60's. The difference is, in the 60's atleast we had the heart to take it to the streets in protest. I think the media needs to stop regurgitating the smole screen of the tea baggers' party. the gang of 6 and the bovine scatology that boehner is spewing... it's all a smoke screen to cover the fact they all want to help "PRESIDENT" Obama (and I say President because the media amongst others have the audacity to call him outside of his elected title I have never heard the media call any President by his first or last name only, they give retired Presidents more respect by still calling them President, anyway that's another story). This is all a game in order to bring about a world we are not familiar with. I am so sorry to see the President stand alone when he speaks. His vice president, secretary of state, nor his party's chief ever stands with him.... where are they? In fact I see more pictures of "D"NC Pelosi and Beohner. I am an Ohioan also and Ohio Leaders can't even make a satisfactory plan for ohio what makes anyone think Beohner (from Ohio) can do any better. Ohio is one of the most poverty stricken states I have ever lived in. They use us for votes but we are quickly forgooten at 12:01 a.m. post election. What I want to know is, why do I have to give up my social security and medicare after I have worked for 35 years and paid into it for all those years. I also want to know why those people with millions can also collect social security when the stop paying social security after making the first 97,000 dollars they make in the year (i.e someone making 500 to 1million a year makes his 97K in the first month of the year). If you won't bring the jobs back from abroad then atleast create jobs to care for our infrastructure i.e streets, highways, bridges, electrical power lines etc. Trust me, they will not come to a decision by aug 2nd, and I hope President Obama invokes the 14 amendment, but then again maybe that what Reps want?????

    July 27, 2011 at 6:56 pm |
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