Originally Posted by e1618978
There is a rift in the Republican party over this debt limit, with the tea party portion wanting a balanced budged amendment, and the traditional Republicans only pretending to want one.
Could this cause the party to split? Here are two scenarios that I have been thinking about:
1) The Republican party ejects all the tea party senators and congressmen (or they leave on their own to form a new party run by Palin), while at the same time the "blue dog" democrats join the Republicans.
2) The non-tea party Republicans become democrats, leaving the tea party behind. The leftmost portion of the Democratic party become independents, form their own party, or join the green party in protest.
In either case, we would end up with a three party system - and I think that the financial stress, and ideological polarization will get stronger and stronger until something like this can happen.
We won't end up with a three party system. Also the Democratic party has several similar possible splits largely along the lines of interest groups with union men, women, blacks and latinos all having very different and often opposing political desires.
The budget debate isn't about balanced budget amendment versus no amendment. It is about a real attempt at a spending cut versus yet another fake one. Any plan that attempts to actually cut spending is being called extremist and associated with terrorism.
This isn't about party because as noted both parties leaders are rearranging the deck chairs in slightly different fashions. This is about the boomer blindspot as I've written before. The utopian 60's vision combined with the belief that the dollar can never be broken is what we are seeing right now. They also refuse to address entitlements because they know as a generation they have screwed themselves and don't want to face reality.
It is an argument about who should kick the can down the road and in one fashion while praying for a miracle to alter the reality that exists.
The "limited magnitude" of both debt plans put forward by congressional leaders would not put the nation's AAA credit rating back on solid footing, Moody's Investors Service announced Friday.
"Reductions of the magnitude now being proposed, if adopted, would likely lead Moody's to adopt a negative outlook on the AAA rating," the credit rating agency said in a new report. "The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high."