Throughout the government shutdown and the debt ceiling fight, President Barack Obama and the Democrats have attempted to use the specter of economic collapse to force Republicans to make concessions. On Oct. 3, President Obama even attempted to talk stock prices down–“this time Wall Street should be concerned”–not caring about the damage he might inflict on investors, pensioners, and the economy in general.
Now–with Republicans “on the run” in polls–National Public Radio (NPR), which has been a cheerleader for the Democrats throughout the debate, has admitted that there are attempts to drive stock prices down in an attempt to force a deal. “It’s almost like they’re begging the markets to react today to force the Senate into some sort of action, and then see what the House does,” said Cokie Roberts on Monday morning.
Roberts was describing a meeting of international bankers in Washington that warned of “dire consequences” if the U.S. did not raise the debt limit. Note that none of these government-aligned barons, warning of nascent panic in the financial markets, advised the U.S. to cut spending and manage its long-term debt–even as Democrats added new demands for spending increases. Presumably, that is a problem for a later crisis.
As of 12:30 p.m. Monday, the Dow Jones Industrial Average is down slightly–not enough panic, presumably, for the White House and international bankers to feel comfortable with their bargaining position.