News
Roll Call | Battle Lines Harden in the Game of Debt Limit Chicken
In the coming debt-ceiling debate, President Barack Obama and Speaker John A. Boehner will face another test of wills over fiscal policy — and the “Boehner rule” could be a linchpin that will either set the tone for the remainder of Obama’s term, if Boehner has his way, or be a thing of the past, as the president hopes.
National Journal | The Emergency Debt Plan That Would Put U.S. Citizens Second
In just a few weeks, the federal government won’t be able to pay all its bills on time. If that happens, the nation could start paying its lenders, many of them foreign, before its citizens.
Washington Times | With U.S. fiscal problems unresolved, treasured AAA rating may fall off cliff
The United States looks increasingly likely to lose its gold-plated AAA credit rating in the next few months amid warnings by Wall Street rating agencies that last week’s $650 billion “fiscal cliff” deal did not go far enough to reduce $1 trillion deficits and stabilize the debt.
Econ Comments & Analysis
Forbes | The GOP Opportunity To Turn Fiscal Cliff "Defeat" Into Victory
Can the Washington Republicans turn their “defeat” on taxes in the “fiscal cliff deal” into a strategic victory? That is the biggest question now facing the GOP and financial markets.
Bloomberg | Why Austerity Works and Stimulus Doesn’t
After five years of financial crisis, the European record is in: Northern Europe is sound, thanks to austerity, while southern Europe is hurting because of half- hearted austerity or, worse, fiscal stimulus. The predominant Keynesian thinking has been tested, and it has failed spectacularly.
Washington Times | Uncle Sam won’t stop overspending
Tax revenue in 2013 will be lower (despite the just passed tax increase), and government spending will be higher than forecast. It’s an easy prediction — and this is why.
Blogs
WSJ | Think Tank: Debt Ceiling Deadline Likely in February
The U.S. government is likely to exhaust all its emergency measures to avoid a debt crisis sometime in late February, based on a detailed analysis of the government’s daily cash flows, a prominent Washington think tank said on Monday.
