President Obama has asked for a “clean” debt ceiling hike, meaning an increase in the debt ceiling without any strings attached on spending.
So… the GOP is going to go along and hold a clean vote next week, but for the sole purpose of showing that such a vote wouldn’t muster enough votes in the House to pass.
Even a lot of Democrats will vote against a debt ceiling hike that doesn’t contain spending cuts, because the issue is so politicallly toxic.
Harry Reid has flipped out over this, claiming that the vote failure will make it look like the US can’t raise its debt ceiling and destabilize markets.
But that’s probably far fetched, since everyone realises what the game is here.
Nonetheless, the GOP is reaching out to Wall Street.
POLITICO’s Morning Money says Rep. David Camp (R-MI) has been making phone calls to Wall Streeters:
Camp has made the case to Wall Street-quite successfully according to M.M. sources-that the vote is just a political marker intended to make clear that significant cuts will be required to get an increase through by August, when emergency measure run out and markets could begin to take possible default more seriously. Most smart Wall Streeters understand this but they still apparently appreciate Camp making it clear that the House vote should not be interpreted as Washington saying the debt limit will not ultimately get raised, as everyone still expects it will, though how we get there is still not clear.