Overview for debt-limit

Technical Default? Don't Even Think About It

Senator Toomey is claiming that a technical default will be relatively painless. Every message from Wall Street is telling him he's wrong. This past week, differing assessments of the effect of a “technical default” on United States sovereign debt widened the debt ceiling split among …

Written by Steve Bell on Friday June 10, 2011

America's Debt Bill Comes Due

Politicians are jockeying for position as the bill comes due on our gaping national debt. But without an agreement soon, we'll all be stuck with the check. Politicians are jockeying for position as the bill comes due on our gaping national debt. As I explain in my latest column for The Week …

Written by David Frum on Thursday June 9, 2011

GOP Rallies Support For Budget Reform

Calls for Congress to adopt a two-year budget process first emerged decades ago. But now Republicans are seriously pushing the idea in the debt limit talks. Republicans in Congress have begun to force talks on budget process reform, starting with instituting a two-year (biennial) budget, …

Written by Steve Bell on Wednesday June 8, 2011

Is GOP's Default Talk Slowing Recovery?

In the D.C. Examiner Michael Barone accuses Obama of harming business confidence and weakening the recovery. If that's right, what about the GOP's default threat? Michael Barone is one of the smartest and most even-tempered observers in Washington. In today's D.C. Examiner he offers his …

Written by David Frum on Monday June 6, 2011

GOP's Debt Fight Strategy Backfires

Initially, many Republicans believed Obama would be blamed for any pain from not increasing the debt ceiling. That party's beginning to realize that was wishful thinking. A very strange thing happened this week—truth appeared in Washington, D.C. After President Obama met with House Republicans…

Written by Steve Bell on Thursday June 2, 2011

Default Fears Start to Shake Investors

Many in the GOP might claim that a short-term default wouldn't have any negative effects, but there are signs that the debt fight has already begun to worry markets. In a vote that was not close, the House of Representatives rejected a “clean” debt ceiling increase Tuesday night, setting the stage …

Written by Fred Messner on Wednesday June 1, 2011

GOP Now Owns the Debt Crisis

After the House's clean debt vote, one thing is clear: any negative fallout from the debt battle will be laid at the GOP's feet. The House of Representatives overwhelmingly defeated the motion to pass a “clean” increase in the United States’ federal debt limit last night. No surprise, right? …

Written by Steve Bell on Wednesday June 1, 2011

GOP Running Out of Time to Win Debt Fight

The clean debt limit vote has predictably failed. But by wasting time on political games, the GOP may have run out of time to cut the long-term spending deal they want. The clean debt limit vote has predictably failed. Of course, it wasn’t the best conceivable option. A debt ceiling increase …

Written by Andrew Pavelyev on Wednesday June 1, 2011

A Debt Fight the GOP Can't Win

Fighting over the debt limit will end in a GOP defeat. The party should instead use its political capital to fight for serious entitlement reform. Congress’ rejection of a “clean” debt ceiling increase isn’t surprising and probably won’t have many short-term consequences. Largely because most …

Written by Eli Lehrer on Tuesday May 31, 2011

Wall Street's Getting Nervous About a Default

Who are you going to believe: the GOP Congressmen who say a short-term default won't matter or the financial professionals warning against that? “Don’t go to a butcher for back surgery.” My Air Force veteran father used to say that. It meant: don’t listen to folks about important matters unless …

Written by Steve Bell on Sunday May 29, 2011

Want Dems to Win in 2012? Then Default

Jim DeMint may try to place the blame for a potential default on Obama and Geithner, but voters will know to hold Republicans responsible in 2012. Senate Republicans are telling Treasury Secretary Geithner that a default will be his fault even though they are the ones refusing to raise the debt …

Written by Andrew Pavelyev on Friday May 27, 2011

GOP's New Line: Budget Cuts Bring Boom Times

Many in the GOP are convinced that immediate and significant spending cuts can cause significant economic growth. But does this claim hold up? The open seat in NY-26 has gone to the Democrats, yet some conservatives still argue that despite its political unpopularity the GOP budget needs to be …

Written by Noah Kristula-Green on Wednesday May 25, 2011

GOP's Clean Debt Vote Won't Fool the Dems

If the GOP continues to substitute theatrics for substantive spending proposals the Dems will end up getting the debt ceiling increase and a lot of political capital. The House proposal for a "clean" debt vote is pure political theater. Given the way the House works, leadership almost never …

Written by Eli Lehrer on Tuesday May 24, 2011

A Treasury Fire Sale Won't Prevent Default

In a blogpost at NRO, Veronique de Rugy presses her claim that we can pay off America's debts without default or a debt limit rise. Unfortunately, it just won't work. Veronique de Rugy takes issue with my recent blogpost arguing that there isn't enough money to pay off America's debts without …

Written by Noah Kristula-Green on Friday May 20, 2011

If America Defaults, It’s Gonna Hurt

How painful would the cuts associated with default be? Well, they might be large enough to cause an economic downturn. In an earlier blog post today, I noted that despite conservative attempts to hide the fact, there isn’t enough tax revenue to pay for all the spending that would be needed …

Written by Noah Kristula-Green on Thursday May 19, 2011

Don't Be Fooled: Default Will Be Painful

Talking heads and think tank fellows are claiming that paying off America’s debts without default will be painless, but their numbers just don't add up. Conservatives, whether they are think tank fellows or radio hosts, share the same talking point: paying off America’s debt’s without default will …

Written by Noah Kristula-Green on Thursday May 19, 2011

The GOP's New Line: Defaults Don't Matter

As the GOP latches on to the false idea that a default is manageable, even the debts of the United States have become another tool of politics. Noah Kristula-Green makes the important point that Stanley Druckenmiller's weekend WSJ interview has blossomed in a matter of days into something like …

Written by David Frum on Wednesday May 18, 2011

Toomey Brushes Off Debt Default Danger

Senator Pat Toomey might not want to face a default, but he also thinks it wouldn't be the end of the world. Would markets feel the same way? Senator Pat Toomey claims that he doesn’t want the US to face a default, but he is definitely interested in the arguments made by conservative op-ed …

Written by Noah Kristula-Green on Wednesday May 18, 2011

Is Ryan Trying to Spook the Markets?

Rep. Paul Ryan's comments Tuesday on CNBC downplaying the odds of a debt deal were careless. Fortunately, this time the markets didn't take him seriously. In an appearance on CNBC Tuesday, Rep. Paul Ryan claimed that holders of US government debt would accept missing payments "for a day or two …

Written by Andrew Pavelyev on Wednesday May 18, 2011

Dump the Debt Ceiling

Congress shouldn’t increase the debt ceiling; instead it should just abolish it. The U.S. hit its debt ceiling this Monday. It’s time for Washington to stop the insanity and act responsibly. Congress shouldn’t increase the debt ceiling; instead it should just abolish it. Drive a stake through …

Written by Andrew Pavelyev on Monday May 16, 2011