News
National Journal | There Is Only One Debt-Ceiling Outcome That Could Save the Economy
Senate Majority Leader Harry Reid has a plan to get us out of the debt-ceiling crisis. He introduced a bill Tuesday night that would lift the limit until Dec. 31, 2014. If that passes, a global economic meltdown would be averted.
Bloomberg | Lew Says Debt-Limit Stalemate Threatens Markets, Retirees
Treasury Secretary Jacob J. Lew warned that the congressional deadlock over the U.S. debt ceiling is “beginning to stress the financial markets,” and failing to raise it by Oct. 17 could put Social Security and Medicare payments at risk.
Econ Comments & Analysis
WSJ | A Federal Default Invites Catastrophe
I have always been amazed that anyone would choose to play Russian roulette. Who could ever be so bored, so irresponsible, or have such low future aspirations that they would flirt willfully with death while having nothing to gain?
Washington Times | How extreme overspending became the new norm
Only the high deficit spending of the past four years makes today’s seem sustainable. As much as some would like to claim spending- and deficit-reduction success, both remain beyond the parameters of recent profligacy. What’s more, the recent deficit reduction has not been a result of declining spending as much as it has been a result of increasing revenues.
WSJ | The Bigger Battle Behind the Shutdown
At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead.
Real Clear Markets | With the Debt Ceiling, Government's the Same as You and Me
If Congress does not raise the debt ceiling, the result will be no different than the Jones family deciding that they have maxed out their credit cards; and that if they continue borrowing and spending over their means, there will be significant pain to the family at best and bankruptcy at worst.
Mercatus | The Debt-Limit Debate 2013: Addressing Key Myths
As federal government borrowing is set to exceed yet another debt limit, most are quick to recall—and wish to avoid a repeat of—the 2011 debt-limit showdown. If current rhetoric is any indication, it appears many of the last debate’s lessons have been forgotten. Regrettably, it seems many of the debate’s facts have been forgotten as well.
Blogs
WSJ | Vital Signs: City Budgets on the Mend
The National League of Cities reports that 72% of city finance officers say their cities are better able to meet fiscal needs this year than in 2012. Back in 2009, only 12% of finance officers thought that. The positive response rate is the highest percentage since 2000.
Heritage Foundation | Moody’s on Debt Limit: Calling Obama’s Bluff on Default
A voice of reason emerged today among the doomsday predictions over a U.S. government default if the debt limit is not raised by mid-October. The Washington Post reports that Moody’s, a top credit rating service, suggested that hitting the debt limit does not mean the U.S. would default
