Rogue compromise

Six U.S. senators in Washington say they can see the writing on the wall regarding the nation's $14 trillion national debt.

The position of the senators -- who call themselves the Gang of Six -- is simple, The Washington Post reported Tuesday. On one hand, the country's finances are "up the creek," Sen. Mark Warner, D- Va., said in remarks made to business leaders in Richmond. On the other hand, "Everything is on the table," said another member of the gang, Sen. Saxby Chambliss, R-Ga.

"For a Republican to put revenues on the table is significant. For a Democrat to put entitlements on the table is significant. But Mark and I believe and know in our hearts that the only way we're going to solve this problem is to have a dialogue about these issues," Chambliss said.

Politicians, like everybody else, try to avoid pain. That might mean raising taxes or the retirement age or it might mean cutting into Medicaid or Social Security. Politically, the senators say, another synonym for pain – just for the moment at any rate – is change, as in, "The picture needs to be painted for the American people that change is coming."

"The question is are we going to have it in a concerted, planned-out manner? Or are we going to have it in a firestorm?" asked Sen. Tom Coburn, R-Okla.

Interestingly, the Post said, the Gang of Six includes Chambliss and Coburn, who are close to House Speaker John Boehner and Sens. Mike Crapo, R-Idaho, who is close to Senate Majority Leader Mitch McConnell, R-Ky.

In addition, the ad hoc compromise board includes Sen. Kent Conrad, D-N.D., and Sen. Richard Durbin, D-Ill.,

In effect, it is clear that the state budget stand off in Wisconsin is going to produce goats and heroes and the dangers of doing that in Washington are exponentially larger. Imagine every Democratic congressman leaving town while House Speaker Boehner issues a proclamation holding them in contempt of Congress.

But, if it's scary what fragmentation can do, it is also scary what bipartisanship can do. A White House fiscal commission recently concluded a study that endorsed a plan to cut $4 trillion from the country's annual deficit by 2020. That will take nerves of steel to accomplish and that's hard to do when your job is on the line.

In international markets Tuesday, the Nikkei 225 index in Japan rose 0.19 percent, while the Shanghai composite index in China rose 0.12 percent. The Hang Seng index in Hong Kong rose 1.71 percent, while the Sensex in India rose 1.19 percent.

The S&P/ASX 200 index in Australia rose 0.22 percent.

In midday trading in Europe, the FTSE 100 index in Britain dropped 0.53 percent, while the DAX 30 in Germany fell 0.98 percent. The CAC 40 in France fell 0.47 percent. The Stoxx Europe 600 index lost 0.25 percent.