Overview for debt-debate

S&P Was Right to Downgrade

The dispute between the Treasury Department and Standard and Poor’s over America’s sovereign bond rating is a tempest in a teapot. Worse, it overshadows the reality about America's debt: Congress cannot handle it politically and Americans will have difficultly handling it personally. The …

Written by Steve Bell on Monday August 8, 2011

Not The Onion

This is the Washington Post's emailed bulletin report on the budget debate: Asked for single-word characterizations of the budget negotiations, the top words in the poll — conducted in the days before an apparent deal was struck — were “ridiculous,” “disgusting” and “stupid.” Overall, …

Written by David Frum on Monday August 1, 2011

The GOP is Not Blameless in a Default

I wonder if Republicans understand that voters are not inclined to be forgiving to the party that toys with financial apocalypse. Thursday evening, I spent some time with a friend who doesn't follow politics particularly closely. She is married, has a house and kids, and runs her own business. She …

Written by Noah Kristula-Green on Friday July 22, 2011

Heritage: Default is Better then Compromise

Ed Feulner in an unusual signed personal statement today urges Republicans to force the country into default unless President Obama yields on the outermost conservative demands. In the process, he equates President Obama and the Democrats to the Japanese militarists who bombed Pearl Harbor. I …

Written by David Frum on Thursday July 21, 2011

Just Lift the Debt Ceiling!

Larry Kudlow and The New Republic like the Gang of Six plan. Keith Hennessey does not . Obviously some people here are kidding themselves. And isn't that just inevitable when plans are being cobbled together by weary legislators working long hours in a summer heatwave? It's only asking …

Written by David Frum on Thursday July 21, 2011

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 …

Written by Steve Bell on Thursday July 21, 2011

Will the "No New Taxes" Pledge Cause Financial Disaster?

The Cato Institute held a debate at the Rayburn House Office Building to discuss whether the Republican Party’s “No New Taxes” pledge is an effective tool for Conservatives’ ultimate goals of shrinking the federal government and restoring fiscal responsibility to Washington. Arguing that …

Written by Fred Messner on Tuesday July 19, 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 …

Written by Peter Worthington on Monday July 18, 2011

GOP Demands Unconditional Surrender

The GOP is demanding unconditional surrender on the debt ceiling, just like it did on healthcare In my CNN column , I write about how the GOP is seeking unconditional surrender on the debt ceiling, and that this can lead to the same disaster that happened to the healthcare bill: In this …

Written by David Frum on Monday July 18, 2011

Downgrade of U.S. Debt Looms on the Horizon

Moody's may give U.S. debt a full-fledged downgrade as soon as next week. A well-placed source tells me that Moody's, the bond rating giant that just announced a "review" of the U.S. debt , may turn it into a full-fledged downgrade as soon as next week. True or not, the real risk of a downgrade …

Written by Eli Lehrer on Wednesday July 13, 2011

GOP Must Use Debt Debate to get Real Cuts

The GOP must extract political concessions with the debt debate. What other opportunity will there be to hold the Democrats' feet to the fire? I have been struck by the arguments here at FrumForum that the hard line Republicans against raising the debt limit are “radical.” I put aside the …

Written by John Vecchione 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 …

Written by David Frum on Thursday July 7, 2011

Democrats Should Offer to Extend the Bush Tax Cuts

In my column for The Week, I argue that Democrats can get a deal on the debt ceiling if they offer to bring back to the Bush tax cuts. In my column for The Week , I argue that Democrats can get a deal on the debt ceiling if they offer to bring back to the Bush tax cuts: Here's one Democrati…

Written by David Frum on Wednesday July 6, 2011

Will Politicians Ignore David Brooks?

David Brooks is warning the GOP to avoid a default, but will they listen to him? One of the things that has attracted me to David Brooks over the years is his willingness to not get so heated in his writing. In a time when it seems that what sells is trying to show everyone how outraged you …

Written by Dennis Sanders on Wednesday July 6, 2011

The Real Debt Debate Sticking Point?

Politico insinuates that a big sticking point for the GOP in the debt-ceiling negotiations is a demand that the earnings of hedge funds continue to be taxed at the 15% capital-gains rate rather than income-tax rates. Politico insinuates this morning that a big sticking point for the GOP in the …

Written by David Frum on Wednesday July 6, 2011

Obama Calls for Lopsided Negotiations

President Obama has summoned Republicans to another round of negotiations over the debt ceiling. And now President Obama has summoned Republicans to another round of negotiations over the debt ceiling. Perhaps he will there deploy some previously invisible form of leverage. To the …

Written by David Frum on Tuesday July 5, 2011