News
Politico | Government shutdown: John Boehner: I’m not 'drawing any lines in the sand'
A week into a government shutdown, and nine days until the debt ceiling is reached, the speaker of the House took a new tone, saying he isn’t “drawing any lines in the sand,” but simply wants to negotiate with President Barack Obama and Senate Democrats to end the budgetary impasses.
FOX News | US consumer debt increased $13.6B in August but credit card use fell for 3rd straight month
Americans cut back on using their credit cards in August for a third straight month, a sign that consumers remain cautious about spending.
CNN Money | 4 ways a debt ceiling crisis could affect you
Congress has never willfully let the United States default on any of its legal obligations. So it's impossible to say with certainty what will happen if lawmakers don't approve a debt ceiling increase soon. - See more at: http://money.cnn.com/2013/10/08/news/economy/debt-ceiling-crisis-fallout/index.html?iid=SF_E_LN#sthash.SweTtjqw.dpuf
Econ Comments & Analysis
CNN Money | Don't want to raise debt ceiling? Get ready for austerity - See more at: http://money.cnn.com/2013/10/07/news/economy/debt-ceiling/index.html?iid=SF_E_LN#sthash.WEtDPM2a.dpuf
A recent CNN/ORC poll found that 38% of Americans think it would be a good idea not to raise the debt ceiling. - See more at: http://money.cnn.com/2013/10/07/news/economy/debt-ceiling/index.html?iid=SF_E_LN#sthash.WEtDPM2a.dpuf
Real Clear Markets | The Costs of Debt Default Are Sobering
The Treasury Department's report of the consequences of default should be sobering: a credit market freeze, a plunging stock market, and a falling dollar. Worse, unlike past fiscal crises, this one doesn't seem to have a resolution. Democrats and the President are insisting that they will not negotiate.
NY Times | Obama and the Debt
The Republicans in the House of Representatives who declare that they may refuse to raise the debt limit threaten to do more than plunge the government into default. They are proposing a blatant violation of the 14th Amendment, which states that “the validity of the public debt of the United States, authorized by law” is sacrosanct and “shall not be questioned.”
NBER | Do Expiring Budgets Lead to Wasteful Year-End Spending? Evidence from Federal Procurement
Many organizations have budgets that expire at the end of the fiscal year. Faced with uncertainty over future spending demands, these organizations have an incentive to build up a rainy day fund over the first part of the year. If demand does not materialize, they must rush to spend these resources on low quality projects at the end of the year.
AEI | Yes, fighting over the debt ceiling hurts the economy
Senators Coburn and Paul took to the airwaves to argue that going past the so-called X date – the date beyond which the Treasury cannot honor all U.S. financial obligations, believed to be sometime in the second half of October – does not automatically mean that the U.S. will default on our debt. Other prominent conservatives have advanced this argument as well.
Blogs
CATO | The Real Dysfunction: A $17 Trillion National Debt
Once again the media are full of talk about dysfunction and default, as the partial government shutdown threatens to linger until the federal government hits the limit of its borrowing capacity, possibly on Oct. 17. The parties in Congress are still far apart on passing a budget bill to keep the government running, and Republicans are also promising not to raise the debt ceiling without some spending reforms.
