Long-range planning in the Obama White House:
From the White House, National Journal’s Marc Ambinder reports that Obama believes he can get the Republicans to cave on taxes if he first lets the bond markets panic in late-July. Obama then hopes that Wall Street and the U.S. Chamber of Commerce will force Speaker John Boehner, R-Ohio, to compromise, like he did on the FY 2011 budget deal earlier this year.
Outside the White House, more and more prominent Democrats are questioning whether the debt limit is even constitutional. Sen. Chris Coons, D-Del., became the latest Democrat to raise the argument yesterday. If there is no debt deal, and bond markets do panic, what is stopping Obama from just ordering Treasury Secretary Tim Geithner to issue more debt? If Obama can just ignore the War Powers Act, why not the debt limit too?
So the choice is between spooking the bond markets or shredding Article One of the Constitution? Say — why not do both!