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August 14, 2013

GOP Could Link Debt Limit to Obamacare Funding

As the GOP establishment backs away from threats by conservatives to shutdown the government in an attempt to defund Obamacare, another potentially more dangerous plan is emerging.

Sources tell the National Review "the House GOP will probably avoid using a shutdown as leverage and instead use the debt limit and sequester fights as areas for potential legislative trades. Negotiations over increasing the debt limit have frequently been used to wring concessions out of the administration, so there may be movement in that direction: Delay Obamacare in exchange for an increased debt limit."

Jonathan Chait: "This is actually even more dangerous than shutting down the government. A government shutdown is disruptive, but can be endured. Nobody knows just what would happen if Congress were to default on payments to holders of Treasury bills, but it could be catastrophic, and at the very least would probably spur bondholders to demand a premium from Washington for years or decades to come. Republicans here are talking themselves out of using a conventional bomb and instead using a nuclear bomb."


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