Let me observe up a bit on this publish from final night time about Janet Yellen’s CNBC interview. I don’t learn her as ruling out “consol bonds” or the 14th modification or varied different approaches. I see her speaking two issues: one overarching and one instant and particular.
Let’s take care of the primary of these first.
As we’ve hurtled nearer to the cliff, there’s been a rising refrain amongst those that are fiercely against any negotiation with parliamentary terrorists. That refrain is anxiously asking this query: what’s your plan once they name your bluff? What steps are you planning as soon as they begin capturing the hostages?
It’s been very exhausting to get a way of simply what that plan is and most of that’s by design. They should preserve their playing cards near their vests. However I’ve seen individuals asking one another: they’re not simply assuming Home Republicans are going to blink are they? that some phantom Republican grownups are going to look on the final second?
At this level it’s crystal clear the Home Republicans are going to start out capturing hostages. Certainly, it gained’t even be a matter of desperation. A whole lot of them need to start out capturing.
What I learn Yellen saying right here is, sure, we all know they’re prepared to try this; and that that’s most likely going to occur; and sure we’ve a plan for what we’ll do in response.
Within the video – the textual content and video of which you’ll be able to see within the publish beneath – she says repeatedly that there are solely “dangerous choices”. However what appears extra salient is that she’s saying they’ve a variety of choices. We all know they’re not nice. That’s a given. However they’ve choices they usually’re prepared to take them. That’s the numerous shift.
Her second level is the extra particular one: that the primary possibility is prioritizing some spending over others. So not sending out some checks. Since 2011 there’s been a dialog about simply how a lot the Treasury has the power to do that. However presumably they really feel they’re in a position to at some stage. That most likely seems one thing like a authorities shutdown on steroids. Who is aware of?
In order that’s the primary possibility however I don’t suppose it’s the one one. They’re saying they know the place that is going they usually’ve received a plan or a minimum of a sequence of choices for what occurs on the day after.