Insights

Politico’s “Morning Money” Tipsheet Touts Jason Rosenstock’s Comments on the Debt Ceiling

September 8, 2017

This morning's "Morning Money" piece from Politico featured “hat tip” to comments made by Thorn Run’s Jason Rosenstock, who offered his take on the current state of play between both parties on the debt limit earlier this summer. “Democrats whose history under the Gephardt Rule shows they never wanted to make this a public issue, and who are tired of having to supply the votes and the campaign fodder for Republicans, have almost no incentive to bail out the GOP majority,” noted Rosenstock. “Republicans, in control of all three branches of Government for the first time during one of these crises, know that they can’t escape the blame for any repercussions from the stock market for failing to raise the debt limit. While few are publicly talking about it, the stars may be aligning so that this next extension is the final time Congress deals with this issue.”

 

A fuller excerpt of this morning's article is below. 

DEATH TO THE DEBT LIMIT!? — POLITICO’s Josh Dawsey and Burgess Everett: “Trump suggested to congressional leaders on Wednesday morning that votes to raise the debt ceiling could be done away with altogether, according to three people familiar with the conversation.

“In a meeting with GOP and Democratic leaders, in which Trump sided with the Democrats on a fiscal deal to raise the debt ceiling, the president said he believes the votes are unproductive, those people said. Many lawmakers dread the vote, particularly Republicans” Read more.

PRAISE FOR TRUMP! — Obama WH CEA Chair Jason Furman emails MM following Trump’s reported remarks: “Lawmakers have been playing with a loaded gun for too long now, it is time to put the gun away permanently before we face a terrifying accident. Permanently eliminating the debt limit would be a win for the US economy.

“As a policy it fails a cost-benefit test, having a real cost and a risk of a potentially catastrophic cost while doing little to motivate fiscal action. Moreover, permanently eliminating the debt limit would be a political compromise — applying not just to President Trump but all of his successors, Democrats and Republicans.”

HAT TIP — Thorn Run Parteners’ Jason Rosenstock wrote earlier this summer: “With all of this uncertainty yet again surrounding the passage of legislation to extend the government’s borrowing authority, perhaps the time is ripe for a grand bargain on the issue. Democrats … are tired of having to supply the votes and the campaign fodder for Republicans …

“Republicans, in control of all three branches of Government for the first time during one of these crises, know that they can’t escape the blame for any repercussions to the market for failing to raise the debt limit. While few are publicly talking about it, the stars may be aligning so that this next extension is the final time Congress deals with this issue.”