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Friday, February 25, 2011

Budget

News                                                                                                                             
The Economist | Tick, Tock
Time is running out to avert a government shutdown.
WSJ | Shutdown Preparations Begin
A 1981 White House memo outlined activities that would likely be exempted in a government shutdown, including medical care, air-traffic control, border protection and activities key to the safe use of food and drugs. Also exempted would be the essential elements of the banking system and tax collection activities.
National Journal | Senate Dems Put 7-Month CR on The Table
Democratic aides said the bill would cut $8.5 billion by eliminating previously approved earmarks. The bill would also accelerate about $24.7 billion in program eliminations or reductions sought by President Obama in his fiscal 2012 budget proposal.

Econ Comments                                                                                                             
WSJ | Budget Battles Roil Straitened States
The states' fiscal woes have sent chills through the municipal bond market and are prompting the biggest clash between government and their union-represented workers in at least 30 years.

Blogs                                                                                                                             
CSM: The New Economy | Too much US debt? Blame the 'shopping' spree.
Crafting a federal budget is like a teenage shopping spree for boomers, seniors.
NRO: The Corner | The Impact of Not Reforming Entitlements Today
The simple translation of that is that if we wait, the future will be very painful, and we will be poorer.
Heritage Foundation | How Deep Are the Government Spending Cuts?
By contrast, the House-passed bill not only rejected the President’s proposed $39 billion hike but actually $61 billion cut off the 2010 level.
Fox News | Congressional Budget Chief Warns of Burgeoning U.S Debt
In 1970, net interest made up only three-tenths of one percent of the annual budget deficit. By 2007, that figure rose to 1.2 percent. And Elmendorf predicts it will erupt to 3.2 percent by 2021.