News
Washington Times | Central bank offers little comfort on EU finances
European Central Bank President Mario Draghi warned Thursday that there’s “no external savior” for heavily indebted governments in the 17-nation eurozone and gave no indication the bank is ready to step in and support their finances.
Roll Call | Appropriators Reach $1 Trillion Deal in Principle
Congressional appropriators agreed to a $1 trillion deal to fund the federal government through the end of 2012 late tonight, in principle narrowly averting a government shutdown.
Econ Comments
WSJ | And the Crisis Winner Is? Government
From Greece to Washington to New York state, there's no effective mechanism to control spending.
Washington Times | YOUNG: Economics and politics battle over budget
Urge to spend regardless of revenue is government’s undoing.
Financial Post | When we were Europe
Canada’s past experience lends support to Germany’s current opposition to non-sterilized bond buying by the European Central Bank and other short-term solutions in favour of accelerated fiscal austerity and reforms. The only long-run viable policy solution for the ultimate survival of the eurozone is through reining in the purse strings.
Washington Times | U.S. no longer a leader of fiscal rescue
Europe to get aid elsewhere.
Politico | The truth in budgeting
The national debt is now more than $15 trillion. The budget deficit for this fiscal year alone will be more than $1 trillion. This mountain of debt is a growing obstacle to economic recovery. But for many in Washington, it’s business as usual.
Blogs
American: Enterprise Blog | Keeping the United States solvent, one crisis at a time
Mid-summer, U.S. prime money market funds became aware that they were alarmingly exposed to the eurozone crisis through their holdings in European banks. At that time, more than 45 percent—more than $1 trillion—of U.S. MMFs were invested in European banks which were themselves heavily exposed to bad European debt.
Heritage Foundation | Mega-Omni: Another Get-Out-of-Town Budget Debacle
The House mega-omni—the massive nine-bill appropriations package now moving toward a vote in the House—represents another disappointing failure to cut spending and prove Congress can instill some measure of fiscal discipline. Equally troubling: The procedure for considering the legislation allows everyone to vote for something he likes, while taxpayers pick up the tab.
American: Enterprise Blog | The U.S. could be out $1 trillion if the euro zone collapses
The attempt to bail out Europe has already begun. And America is on the hook for plenty.
Reports
CBO | Reducing the Size of the Federal Government Through Attrition Act of 2011
CBO estimates that implementing H.R. 3029 would reduce discretionary spending by about $35 billion over the 2012-2016 period.
