(Please welcome Daniel Bassali to the wacky world of Political Derby!)

Everyone thinks they have a solution to this debt ceiling predicament that we are in. I am no different; the only thing is that each solution presented so far serves one side or the other. That doesn’t work for one teensy little reason… no one wants to go back to their districts and have to admit that they lost or they gave in to the evil empire on the other side. Politics is at its best during these moments. This is where things get both interesting and scary. We now have a three way Mexican standoff between the president, Republicans and Democrats. Each side has a political agenda and all of them refuse to blink. Someone has to lose this staring contest though, right?

Let’s quickly ponder what happens if no agreement is made and we do default. Stock market free falls, possibly even to 2009 levels. Payments aren’t made and therefore workers are laid off and the economy dips into a second recession. The United States credit rating becomes at risk of falling from its current AAA standard meaning interest rates soar. Essentially, all hell will break loose if this doesn’t get done. Now one thing history tells us is this: No one wins if this scenario plays out.

Republicans are deemed stubborn and uncaring to their constituents. They will be portrayed as defenders of the rich while everyone else is struggling to make ends meet. The Democrats will look exactly like a certain diva. What I mean by this is that the American people will see them as incompetent and unable to stop spending ridiculous hoards of money. Bottom line is that incumbents will be falling faster in the 2012 elections than the stock market will in August. No one wants this, it does not benefit Republicans. It certainly does not benefit Obama and the Democrats.

The crazy part is that this may all actually happen. Each side is so sure that the other will blink before they let the country go into this kind of disaster that they stick by their own agenda. Republicans: How many more jobs would be lost if we default than if we raise taxes? Democrats: What’s the point of refusing any cuts to entitlements if refusing means we will not be able to pay them out? Mr. President: What good will all your rhetoric be if you can’t convince these two sides that they share the same fate?

My Conclusion: even if all three sides cave in a little and take some flak from their bases, it is far better than the latter option. Don’t take me wrong, I am rooting for the Republicans to get their way with these negotiations but I feel as if there is no way to actually “win.” DC has put itself in a no-win situation; they might as well try to cut their losses and compromise now rather than guarantee that they won’t be back in 2013.