Posted Oct 14, 2013 by Martin Armstrong
Democrats’ stand over sequestration is of course just another step in trying to blame the Republicans. Their own polls tell them they are in the lead and that is what this is all about. Default and they think they will destroy the Republicans and take the full Congress next year. As long as the mainstream press blame the Republicans, the Dems will have no incentive to work anything out. The deadline is the 17th. However, Obama could replace the debt held by inter-agencies with IOUs and then sell that debt to fund the government. They have been taking pension money from members of Congress.
Unfortunately, the Democrats are emboldened after polling showed them with the upper hand in budget fights and they, too, are concerned about the severity of the budget cuts. Welcome to the Sovereign Debt Crisis where borrowing is perpetual and paying back is not even an issue.