News
MarketWatch | Obama calls for compromise in debt crisis
President Barack Obama called Saturday on both parties in Congress to compromise to pass legislation needed by Aug. 2 to prevent the U.S. government from defaulting on its loan obligations.
Politico | Minnesota shutdown drags on
Now in its 18th day, Minnesota’s state government shutdown continues as Democratic Gov. Mark Dayton has yet to formalize his announced deal with GOP legislative and a special session planned for Monday is likely to be delayed.
CNN Money | Moody's warns again on U.S. debt
Credit rating agency Moody's dinged a key backup plan to raise the debt ceiling Monday, and said the United States would be better off if the ceiling was eliminated entirely.
Fox News | Farmers worry about effect of $30B in cuts
Farm groups are rushing to save government subsidies they've long received.
WSJ | Senate Debt Plan Promises Months of Budget Wrangling
With few signs of movement over the weekend on negotiations to raise the federal borrowing limit, Senate leaders are planning this week to unveil a back-up plan that would force more budget wrangling before the end of the year.
WSJ | Federal Land Up for Budget Grabs
White House and congressional negotiators, hunting for savings in the federal budget, recently came upon a juicy target: a 387-acre tract of land in the heart of ritzy West Los Angeles. It could be worth billions.
Econ Comments
Daily Caller | Two trillion isn’t enough
The president doesn’t want to have to rehash this debate before the November 2012 election. That means that the debt ceiling will have to be increased by $2 trillion in order to create enough space through the end of next year.
Bloomberg | Republicans’ Budget Balance Plan Lacks Details
A balanced-budget amendment would require cuts even deeper than those in the budget proposed by Representative Paul Ryan of Wisconsin, which was approved by the Republican-controlled House in April. Ryan’s plan doesn’t balance the budget until 2040 and would leave a $338 billion deficit in 10 years.
Barron's | The Whole World's Watching
The battle over the debt ceiling, warns Michel Darda, isn't the only thing for investors to worry about. Stephanie Pomboy discusses how the Treasury can entice buyers of U.S. debt.
Blogs
Heritage Foundation | President Obama Is Against A Balanced Budget
Obama said that a BBA is not needed for Congress and the President to balance the budget. The facts contradict the President’s statement and tell a different story.
Cato@Liberty | Debt-Limit Deal: $500 Billion Cut Option
Charles Krauthammer is absolutely right that Republicans must call President Obama’s bluff on the debt-limit vote. I suggested that the House GOP pass $2 trillion in cuts tied to a $2 trillion debt increase, thus handing the matter over to the Senate and the president and refusing to budge.
FT: The A-List | US faces economic suicide if spending isn’t restrained
The row in Washington over the US federal debt ceiling raises the question of whether we are observing political theatre or a serious struggle with a large and complicated problem. The answer is a bit of both.
Mercatus Center: Neighborhood Effects | Do Politicians Regulate When They Can’t Spend?
Relying on data from 48 states covering the years 1970 through 2009, we look at the relationship between fiscal rules, fiscal outcomes, and regulatory outcomes.
Café Hayek | Smoke and mirrors
The focus on the size of the spending cuts is a red herring. What matters is spending.
