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And this week's shocking refusal to implement debt relief by the acting director of the Federal Housing Finance Agency — a Bush-era holdover the president hasn't been able to replace — illustrates perfectly what's going on.
Implement debt relief". As the administration is trying to map out an endgame, so, too, are Democrats who have been unable to effect meaningful change in U.S. war policy since they took over Congress 15 months ago.
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Working out and implementing debt relief may simply prove politically unworkable.
Even the Department's highest cost estimate of implementing debt relief under the rule -- $42.7 billion over 10 years -- is a tiny percentage of the more than $1 trillion projected loan volume over the same 10-year period, or the $1.3 trillion in current outstanding federal student loans.
Until now, the European Union has insisted that debt relief could only be considered after Greece had implemented a series of reforms, which include cutting pensions, reforming the tax system, and liberalizing the labor market.
In 2007 Congress implemented two debt-relief measures.
They have conditioned offers of aid, loans, and debt relief on recipients' willingness to implement market and governance reforms.
The gridlock report came after the head of the ESM said at the weekend that Greece should be able to secure at least short-term debt relief measures but only if it began implementing the remaining reforms.
For its part, Greece appears to be insisting it will not sign any deal unless it contains a commitment to official debt relief, while the creditors say they will only start discussing debt rescheduling once a deal is signed and implemented.
Debt relief could also make it easier to scale-up public finance for climate change at a time when developed countries are implementing austerity cuts.
Debt relief.
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