US Congress - Debt Deal? If the Tea Party Likes It, It Can’t Pass: Economist - CNBC
As the high risk-game of chicken over raising the US debt ceiling draws closer to possible economic collision, one economist is warning that any deal that wins approval from the right-wing Tea Party movement will pass neither the Senate nor the president.
“As the Tea Partiers are showing no indications of being willing to compromise at all, the only way a deal can be done is for moderate House Republicans—those who appreciate that default would be hugely damaging for the country—to side with Democrats to pass a bill that the Senate and the president can sign,” Ian Shepherdson, chief US economist at High Frequency Economics said in a research note on Wednesday.
As things stand, such a solution looks very unlikely in the coming days. The latest plan from House Speaker John Boehner needs revising following Congressional Budget Office experts warning it would not deliver on the spending cuts it claimed. That plan is likely