Government to Banks: We Will Not Default

It would come as shocking to none but the most naive of political observers if White House officials were singing a different tune about the possibility of default depending on whether they were situated behind the glare of television cameras or in the relative comfort of their offices. Apparently they are doing just that, signalling to banking executives that default is not imminent even as the President himself continues to excoriate lawmakers for not getting on with it.

Such as scenario leads this observer to one main conclusion; the current posturing over a debt deal is even more useless than we thought. And for any new readers out there, our opinions of congressional puffing were never high to begin with. If banks and members of the press are aware that the White House will force a deal through in order to avoid default, then lawmakers certainly are as well. And if lawmakers are aware of this they have no reason not to jam through a bill on their terms, knowing full well that, even if it takes all eleven hours, a deal will be agreed.

Meanwhile average Americans are constantly inundated with warnings from politicians and talking heads suggesting that their country is the next Brady Bond era Argentina. The truth of the matter is that the most likely scenario sees a deal being made, likely on terms closer to what Republicans deem favorable that those the left would be comfortable with, default being avoided, and mainstream reporters being able to transition back to stories they understand, like Lady Gaga's latest award show dress. In contrast to the current sky is falling stories now being dished out daily, such a change could hardly ever be more welcome.