Obama Playing for High Stakes in Debt Dispute

First, he emerged as a moderate negotiator, but to no avail. Now, Barack Obama is sharpening his tone in the dispute over the budget.

The old stories from Springfield are now being resurrected. In the tranquil capital city of Illinois, Barack Obama was a senator for eight years, far removed from the big political stage of Washington. At times, he was said to be terribly bored. He had a lot of time to kill, which is why he met with colleagues once a week to play poker. He was apparently a really good player, something discovered by David Mendell, who was the first person to write an Obama biography. “He played carefully and was adept at not revealing his hand.”

No wonder such episodes are being rehashed again amidst the wrangling over the debt limit. After all, the president has been making use of poker language lately. “Don’t call my bluff,” he shouted to his toughest opponent, the emergent representative Eric Cantor, who leads the Republicans in the House of Representatives. “I’ve reached my limit,” ranted Obama, because Cantor wouldn’t budge a centimeter. “This may bring my presidency down, but I will not yield on this.” These are scenes from a battle of nerves.

Obama usually acts as a mediator who is more calm and engaging than his rivals. Now, Americans are witnessing a head of state who is not afraid of a showdown. It wasn’t until Thursday that he issued an ultimatum: Within 36 hours, the squabblers should let him know if they are interested in a deal. Behind his sharp tone lies disappointment. Obama had counted on difficult talks, but not with a stubbornness that borders on fiscal harakiri. Insiders felt certain that the tug-of-war would end with a compromise. Earlier, he put forward an offer that was supposed to make it easier for Republicans to come around.

Accordingly, the debt mountain in the U.S. should be reduced by $4 billion by 2021 — three quarters through spending cuts and one quarter through the closing of tax loopholes such as those of hedge fund managers or owners of private jets. Slashes in Social Security as well as Medicare are also envisaged. Obama’s outline should signal a tipping point, the strategic accompaniment to a short-term, unavoidable provisional solution, the raising of the debt limit.

Republicans hopelessly split

Thus far, it hasn’t worked out because the Republicans are hopelessly split. Speaker of the House John Boehner, a Washington veteran, would have long since been in agreement with President Obama. Cantor, on the other hand, relatively new to Washington, rejects a quarter of Obama’s plan, which involves higher taxes. For this reason, the president let him know that he’s had enough. Cantor looks to the rebels of the Tea Party, who put the establishment through the wringer.

Since the protest vote of the previous fall, more than 80 politicians in Congress represent them. While Federal Reserve chairman Ben Bernanke warns of disaster should the debt limit not be raised, the Tea Party doesn’t care about the consequences: Ideology overrides compromise. Obama has long tried soft words. He has appealed to reason. One party rules the executive branch, the other the legislative. Everyone must “give a little.” Now, nerves are on edge. Now, Democrats are accusing Republicans of memory loss. The expensive Iraq War, tax giveaways for the rich, the bailout package for the banks — was it not George W. Bush who squandered billions? “He made the bed, and now we must lie in it,”* raged Nancy Pelosi, the most prominent voice of the left-wingers.

*This quote, accurately translated, could not be confirmed.