“No Downside” to Not Raising the Debt Ceiling, Says Chris Whalen

Interview with Chris Whalen

• balanced budget amendment and cuts are more mainstream
• will Repubs vote to raise ceiling?  May want to continue to say no.
• Why would default not be bad?  Pay interest first and stiff others.  States did it.
• Must cut back, no vote is good politics, but bad economics?  Baked into pie anyway, he says.
• Congress has a right to say no.  The treasury and white house must really cut spending.  Must change behavior of government.  Spending drives everything.  Raises debt is another bailout, in effect.
• Need big turnover in House, haven't had that for a 100 years.  2010 just a start.  Current crowd won't change.

Yes.  A few elections would do it, but by that time, it could be too late.