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 the upcoming budget … Continue reading »
debt ceiling
Republican crazy talk about the debt ceiling
“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 after October 17 – … Continue reading »
The debt ceiling and the environment
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 a massive regulatory rollback. This … Continue reading »
Ransom paid
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 of total income and wealth, and whose tax … Continue reading »
What to do about the debt ceiling
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 in time than the restriction on borrowing, that (c) … Continue reading »