When asked about the debt ceiling, the president and the Treasury should simply state that the United States of America will pay its debts, now and in the future. Always. Period. When asked again, repeat the above.
And, the Senate should pass a typical debt ceiling increase quickly and send it to the House. Remember all that certainty stuff that business craves to create jobs that was a reason to extend the Bush tax cuts for the wealthy?
Then, sit back and let Wall Street lobbyists do battle with the Tea Party nutjobs they elected to Congress. Let PIMCO explain to them what will happen to their bondholdings. And, Goldman Sachs can explain what it would do to the stock markets. Let the hedgies inform them about who buttered their bread.
As the House dawdles with the approaching deadline so the markets begin to wobble, and they call plaintively for the President to become involved, the White House should say simply, "they know what they have to do". Once they believe you will give in on something, they will demand everything.
No negotiations. No discussions. No deals. No way. No how.
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