The war isn’t over. It’s only a cease-fire.
Republicans have agreed to fund the federal government through January 15 and extend the government’s ability to borrow (raise the debt ceiling) through Feb. 7. The two sides have committed themselves to negotiate a long-term budget plan by mid-December.
Regardless of what happens in … More >
“I would dispel the rumor that is going around that you hear on every newscast, that if we don’t raise the debt ceiling, we will default on our debt,” says Sen.Tom Coburn, R-Okla. “We won’t. We’ll continue to pay our interest.”
This is crazy talk. While the Treasury Department could prioritize interest payments … More >
It slipped under the radar screen due to all the furor over the impending government shutdown, but the NY Times ran an important article two weeks ago about the debt ceiling. The Republican plan is apparently to condition their agreement to raise the debt ceiling and save the country from default on … More >
Anyone who characterizes the deal between the President, Democratic, and Republican leaders as a victory for the American people over partisanship understands neither economics nor politics.
The deal does not raise taxes on America’s wealthy and most fortunate — who are now taking home a larger share … More >
I vote for Calculated Risk‘s Option #1: The Treasury’s lawyers should simply announce at 9 am Monday morning that (a) since the Constitution prohibits questioning the validity of the national debt, and (b) since the continuing resolution that mandates spending through September 30 was passed later … More >
One of the most important yet least acknowledged aspects of the debt ceiling drama currently gripping Washington is the fact that Republican stubbornness is increasing our national debt. Rather than placing the country on a sound fiscal footing, the GOP’s ongoing refusal to raise the debt ceiling has worsened our … More >
In threatening to prevent an increase in the nation’s debt ceiling, congressional Republicans have argued that they are upholding traditional principles of fiscal conservatism. According to some, the United States’ debt burden is unsustainable, and only by prohibiting the Treasury Department from greater borrowing will the government be forced to … More >