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 …

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Written by David Frum on Thursday July 21, 2011

Will Contractors Sue After Default Day?

If contractors don't get paid after the debt ceiling is not raised, will they sue the federal government? What happens on the day after Aug 2 if the debt ceiling is not raised? Frum Forum this week contacted a number of government vendors and contractors who unanimously stated: they had no …

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Written by Fred Messner on Thursday July 14, 2011

Who is the Priority Creditor on Default Day?

Here's a skill-testing question in this time of debt showdown, who is the most senior government creditor after Default Day? Here's a skill-testing question in this time of debt showdown. Who would be the more senior government creditor after Default Day: - A disabled Social Security …

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Written by David Frum on Tuesday July 12, 2011

Turning A Crisis Into A Greek Tragedy

The political management of the Greek financial crisis is akin to the generalship exhibited in World War One and could have similar catastrophic consequences for Europe. Looking back at historic events, say the protracted tragedy of World War One, one is frequently puzzled by the inability of the …

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Written by Napoleon Linardatos on Monday June 27, 2011

Debt Fight Could Give Obama More Budget Powers

Even if the Treasury were to pay bondholders while withholding other payments, does the GOP realize the authority they would be giving Obama over the entire budget? Some Republicans suggest that there's no special need to worry about hitting the debt ceiling: after all the Treasury will still …

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Written by David Frum on Monday May 16, 2011

Stop Flirting with Debt Disaster

I always assumed that the first American political party to contemplate default as a way to achieve its political goals would be the Communist Party of the USA, not the GOP. The Wall Street Journal 's  weekend interview with famed investor Stanley Druckenmiller may have the most eyebrow-raising …

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Written by David Frum on Saturday May 14, 2011