News
CNN Money | Fiscal cliff tax deal: Getting to $1 trillion
Leaders in Washington say they want to make a "down payment" on deficit reduction and avert the fiscal cliff.
NY Times | States Want to Have Say During Talks Over Budget
Their states are still recovering from the recession, and now the nation’s governors are bracing, again, for cuts in federal aid.
Washington Times | EU summit ends without budget deal
A summit of the European Union’s 27 national leaders, charged with agreeing on a long-term budget for the bloc, broke up Friday afternoon without being able to reach a deal.
CNN Money | 8 things that could kill a fiscal cliff deal
I'm not ruling out a deal before Christmas, particularly one that combines a very modest "down payment" with procedures to deliver tax and entitlement reform. I've always said I see about a 40% chance of such a deal by December 24. The problem for the market will be to gauge how much deficit reduction will ultimately be delivered. I expect to be underwhelmed.
Econ Comments & Analysis
Real Clear Markets | The Fiscal Cliff? Let's Rush Off Of It
Washington, the media, and many economists are consumed by the looming fiscal cliff-a combination of tax increases and spending cuts that are set to occur on January 1. Many economists, Fed Chairman Ben Bernanke among them, predict that if we go over the fiscal cliff the country will go into recession. I say let's do it.
WSJ | Les Moody Blues
Moody's stripped France of its triple-A rating last week, citing "deteriorating economic prospects," the "long-standing rigidities of its labor, goods and services markets" and "exposure to peripheral Europe." And it could get worse
NY Times | Slugging It Out, Inside Obama’s Mind
Throughout Washington, policy makers are debating how to avoid hitting a wall on Jan. 1, when large and abrupt tax increases and spending cuts will take effect automatically unless Congress acts. The debate is perhaps no more fervent than it is inside the head of our newly re-elected president, who must now decide what kind of policy leader he will become, both in this confrontation and throughout his second term.
Washington Times | After fiscal cliff comes fiscal avalanche
While Washington is preoccupied with the so-called fiscal cliff, little attention has been given to the fiscal avalanche that will occur if we continue down an unsustainable, long-term path, causing markets to turn sour on U.S. debt and leading to a spike in interest rates.
WSJ | None Dare Call It Default
To call Greece First World may be a stretch, but Greece has defaulted once already, and it is only a matter of time until Greece defaults again. Welcome to default-o-rama, the next chapter in the First World's struggle for fiscal sustainability.
Forbes | Avoiding The Fiscal Cliff By Fixing The Fiscal Hole
The President and Congress may throw America into another recession, thanks to the Balanced Budget Act, which was crafted so as to punish the entire country with brutal spending cuts and tax increases if politicians couldn’t agree amongst themselves on a kinder, gentler plan to tame the deficit.
AEI | Greece's only option is default
This week's gridlock over Greece's next round of bailout funds underscores an unsettling reality that Europeans would do well to realize sooner rather than later: For Greece, default is the only option.
Blogs
Heritage Foundation | Avoiding a Debt Crisis, Eh? Lessons From Canada
Congressional lawmakers met last week to try to hammer out a deal to avert the fiscal cliff. Democrats insist on revenue increases as part of such a deal, saying new revenue is the only way to significantly reduce the national debt. However, it is not a lack of revenue that is driving U.S. debt; it is unrestrained federal spending. American lawmakers looking to solve America’s looming fiscal crisis need not look further than Canada.
