Speaker John Boehner seeks compromise with Democrats over raising the debt limit ... House Speaker John A. Boehner has lowered expectations for reaching a sweeping budget deal with the White House and instead is focusing on the more immediate task of averting a looming showdown over the debt ceiling. Raising the debt limit has become one of the most difficult votes for Republicans in Washington, and the Nov. 3 deadline raises the risk of a federal credit default if Congress fails to act. Boehner (R-Ohio), who hopes to retire at the end of the month, has signaled he is prepared to abandon the demands of his party's conservatives by considering a straightforward bill that Democrats would support. – LATimes

Dominant Social Theme: Let's act like adults regarding the US's insupportable debt by raising the amount we can borrow.

Free-Market Analysis: John Boehner is aiming for a final compromise with Democrats before he leaves office. Rather than trying to negotiate with a number of dissatisfied legislators on his side of the aisle, he wants to work with the opposing party. A deal with Democrats would further exacerbate poor relations between mainstream Republicans and libertarian/conservative Tea Party types but Boehner's decision to retire has emancipated him.

Not having to acquiesce at least partially to the libertarian/conservative right, Boehner is free to negotiate with whom he chooses. When it comes to raising the already impossible-to-pay-down national debt by setting a new, more generous debt ceiling, the Democrats are far more cooperative legislators.

Whatever comes out of the House will find an easier path in the Senate, where the always obliging GOP Majority Leader Mitch McConnell of Kentucky has already said he will "wait and see how the House deals with this."

Treasury Secretary Jacob Lew is nervous about the nation getting too close to the debt ceiling, warning a big "accident" could happen. In fact, the debt limit has already been breached, but Lew has taken actions to juggle accounts in such a way that the ceiling is legally intact. These have been referred to as "extraordinary measures."

If by some chance, the libertarian/conservative element in the House does manage to disrupt the process of creating a new and higher debt ceiling, defaults would begin and the US would be in danger of a downgrade by the rating agency Standard & Poor's. This would result in higher borrowing costs.

Past budget compromises rating the debt ceiling have resulted in cuts to both social programs and military spending. But the current standoff is complicated by the growing unpopularity of these cuts. Republicans don't want additional military cuts and the Democrats don't want to pare more social programs.

It is possible that Boehner will push through a "grand compromise" with the help not of Republicans but of most of the Democrats. Alternatively, the new Speaker may be Rep. Paul D. Ryan (R-Wis.) who is currently trying to ascertain whether the House Freedom Caucus will support him.

One person who presumably would not support Ryan – cast as a disciplined conservative but more probably squishy like Boehner – is former House member and Republican presidential candidate Ron Paul.

Paul is retired now but still active. He writes a regular column every week and this week's column is entitled, "Debt Ceiling Debate: Don't Mention Warfare/Welfare State!"

Paul's stance in the article is that it would be "irresponsible" for Congress to raise the debt ceiling. He believes there needs to be a hard cap to Congressional spending or otherwise government will grow without restraint. Here's more:

Anyone who doubts [the necessity for restraint] should listen to the bipartisan whining over how sequestration [budget cutting] has so drastically reduced spending that there is literally nothing left to cut. But, according to the Heritage Foundation, sequestration has only reduced spending from $3.6 trillion to $3.5 trillion. Only in DC would a less than one percent spending reduction be considered a draconian cut.