Time is Running Out

Yesterday evening and last night something important in the debt ceiling discussion happened:  many members of both the House and Senate moved from “worried” to “scared.” This is good news, of a sort. It further confirms our judgment that the United States will not default on its sovereign …

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Written by Steve Bell on Thursday July 21, 2011

Raising the Debt Ceiling is Inevitable

The debt ceiling will be raised, but will get higher by a horrendous amount. It fair to say that most people do not understand the intricacies and machinations of the “debt ceiling” debate underway in the U.S., involving the President, Congress, Republicans Democrats, with the rest of the …

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Written by Peter Worthington on Monday July 18, 2011

Newt Stays Sane on the Balanced Budget Amendment

Newt Gingrich's campaign may be struggling, but he is staking a surprisingly smart position on the Balanced Budget Amendment. As the debt ceiling talks drag on, many Republicans are suggesting a new condition for raising the amount that the federal government can borrow: the passage of a …

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Written by Ajay Ravichandran on Friday July 15, 2011

GOP Stands by Brazilian Cotton Subsidies

As the Republicans in Congress continue to push President Obama to approve deep budget cuts as a condition for raising the debt ceiling, most of them refuse to repeal a program that seems like a clear case of wasteful spending. As the Republicans in Congress continue to push President Obama to …

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Written by Ajay Ravichandran on Thursday July 14, 2011

GOP Losing Touch With Economic Reality

In the debt debate the President has the bully pulpit and the GOP is getting its clock cleaned. President Obama’s news conference this morning confirmed the age-old truth: a President has the bully pulpit. More people saw, or will see in some format, the President’s remarks today than …

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Written by Steve Bell on Tuesday July 12, 2011

The Debt Ceiling's Collective Action Trap

The debt ceiling vote is one where every Republican will want to be on the losing side. But if they all win then the country will lose. If you're a Republican elected official, you want two things from the debt-ceiling budget talks: 1) You want the talks to succeed - to produce a deal that …

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Written by David Frum on Thursday July 7, 2011

There is No Upside to a Default

Can anyone explain to me slowly what exactly congressional Republicans are doing on the debt ceiling? Can anyone explain to me slowly what exactly congressional Republicans are doing on the debt ceiling? Yes, I perfectly understand the need to restrain borrowing (relative to GDP), …

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Written by Andrew Pavelyev on Thursday June 30, 2011