Hennessey: better than me
January 14, 2013 3 Comments
By the way, lest anyone accuse me of cherry-picking low-hanging fruit when it comes to my complaints about commentary on ‘default’ and proving myself right all the time (which DOES get tiresome!), let me point you toward this piece by Keith Hennessey which is both reasonable and disagrees with me and all things considered is probably rooted in better ideas and (definitely) in more knowledge than my half-baked off-the-cuff ones.
In his parlance, what I’ve been complaining about are commentators who fail to distinguish between a default and a ‘technical default’. The solution I’ve been pushing, Split The Difference, is (mostly) a method of ‘passive prioritization’, which Hennessey calls a bad, irresponsible and strategically-misguided idea (and I’m not sure he’s wrong).
On the strategic point though,
Even if you disagree with me, and you think we need to take extreme measures to force President Obama to agree to spending cuts, and you’re willing to damage the U.S. government’s contracting credibility by starving it of cash by denying it the ability to borrow more, …
… what makes you think the President and his team are going to do so in a way that you like or that creates leverage for Congressional Republicans? Remember, he has the flexibility to decide which payments get delayed.
I guess part of where I’m coming from is that I don’t give a rat’s ass about ‘leverage for Congressional Republicans’ as such. *shrug*
Anyway, read the whole thing. I still like #SplitTheDiff though and it’s still the only least-squares, entropy-maximizing solution. You can’t take that away from me.
UPDATE: Also see this good round-up of some basic definitions of all these terms that everyone else would be using too if they were using all these terms correctly.