Debt Limit Extension: Rules to Negotiate By

The Federal Debt extension talks, discussions, meetings and negotiations continue on. The President had another press conference today stating the obvious--that it is critical the $14.3 trillion debt ceiling (about $4 plus trillion so far has occurred on his watch) must be raised. No duh, Mr. President. Where have you been for the last 9 months?

 The events have become similar to those on a daytime soap opera. They are riveting and full of twists and turns. The viewer never knows which participant will come up with amnesia, huff away, or disappear for a fundraiser, go into a tizzy or use the double cross.  However, unlike the television version, this one is serious and real. This set of national leaders needs help. Maybe, just maybe they do not know how to negotiate? So, I want to pass along some rules I learned from my father. Maybe they will help.

 1. You never learn anything by talking. You already know what you know and listening to the other fellow can only advance your goal;

 2. Let the other guy negotiated with himself. Most people get nervous and want to please so they end up doing your work for you;

 3. Leave the last nickel on the table for your adversary. It makes them feel good and keeps them coming back thinking they have bested you.  

 4. Be prepared to walk away from a bad deal. Never want something so bad to overpay for it.

 5. Recognize when you have won.

 Given these rules, how have the respective parties done? Not well, I think. Not much listening, lots of talk and politics.

 The Liberals say they want to reduce the deficit but what they really want is to keep spending at the highest levels possible. Oh, the deficit is a nuisance but it can be reduced somewhat by taxes, taxes, and more taxes. If it moves, tax it. If it breathes, tax it. If you make any money, give it up. Conservatives on the other hand, do not want to pay tribute to the realm to support much of anything. Ok, some soldiers and tanks and a road here and there and maybe some air traffic controllers to help manage the corporate jet flights.

 The parties have been discussing a “grand bargain” by making substantial cuts in future programs and by raising taxes. It is difficult to even comment on specifics. However, no matter, this grand bargain appears to have fallen apart so we will really never know what ultimately anyone would have supported. However, I think the Republicans have lost an opportunity to get the better of the deal. I am not sure they know they were winning. If in fact, the Democrats would have agreed to major and real change in the course of federal spending, the price tag of a few billion in tax increases would be worth it. The Democrat’s tax suggestions, other than the oil and gas changes, are Mickey Mousesque. No big deal if a few of them gets passed allowing the Democrats to save face and crow. (See rule# 3 above)  As I said in my last piece, the real tax money is in the Bush tax cuts and they are unlikely to be extended if Obama is re-elected. That is a battle to be fought later it seems to me.

 The grand bargain was probably an illusion in the first place. It would have taken real vision and leadership to accomplish. The right mixes of substance and politics does not come along often. Great men become great men when opportunity to be so arises. Unfortunately, there are no candidates for the next edition of Profiles in Courage at this White House or on Capitol Hill.

 The President is still mouthing his support of some big deal. However, he is not really serious. It is all politics. If he were serious he would have set forth a specific plan months ago other than get those corporate jet guys. He would have taken up suggestions of his own National Debt Commission. After all, the President represents the political party that controls the United States Senate which has not passed a budget in over 2 years and rejected-in laughter-the President’s own budget by a vote of 97-0. He wants the debt limit to be extended and will agree to some spending cuts (how about counting reduced interest?, more on that gimmick later) but none of them to take effect anytime soon. I am not convinced there is any substance or sincerity here.

 So the parties will reconvene.  The saga continues.  

 

Comments

[Beekeeper]

None of these politicians want to make a deal. It is too late for all of us and the country. keep writing guy!