Nexon: Right on Motivations… Outcome Pending

13 January 2013, 1505 EST

Me:

And, in fact, bargaining theory suggests that [abandoning the “platinum coin” option] strengthens Obama’s hand.

Krugman:

Meanwhile, I get calls. The White House insists that it is absolutely, positively not going to cave or indeed even negotiate over the debt ceiling — that it rejected the coin option as a gesture of strength, as a way to put the onus for avoiding default entirely on the GOP.