More than money is on the line in the current debt ceiling negotiations. The political futures of President Obama and Speaker of the House John Boehner potentially hinge on a deal.
Long ball vs small ball
Rep. Boehner may have taken a backseat to the President this weekend after he abandoned a plan to cut $4 trillion over the next decade, rather than accept any tax hikes. Meanwhile, the President is willing - against the wishes of Democrats in Congress - to bargain with Social Security, Medicare and Medicaid.
The President is committed to playing "long ball" while the GOP is now settling for "small ball" is how former U.S. comptroller General and current CEO of Comeback America Initiative David Walker describes the current state of affairs. That puts the President in the driver's seat politically, Walker tells Aaron in the accompanying clip. "He's clearly exhibiting leadership and now the Republicans are on retreat."
In contrast to President Obama, "the Republicans right now are looking very unreasonable to independents," argues Walker. And, if progress is not made on fundamental issues, Walker believes it could cost the Republicans the House of Representatives in 2012.
However, there's alternative scenario that could prove to be a rare win-win in Washington, notes Walker. If both sides can reach a deal on $2 trillion in cuts while not touching taxes, the U.S. will avoid a debt crisis and politicians of both parties can go home to their constituents touting a victory.
Of course, a deal would only extend through 2012, so we may be back here gain after the next election.
For more Daily Ticker coverage of the debt ceiling debate see: