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

GOP Picks the Wrong Spending Fight

The GOP seems convinced inciting a debt ceiling crisis is the best way to restrain spending. But even a short increase in the limit can stave off a bigger crisis. One might note within many ostensibly conservative discussions about the debt ceiling a strain that comes far more from Leon Trotsky …

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Written by Fred Bauer on Monday May 16, 2011

No Deal in Sight as Debt Deadline Nears

As the U.S. hits its debt limit, it's time for Republicans to take the matter seriously. They can start by putting revenue expenditures on the negotiating table. The debt limit that the United States hit yesterday isn't a big deal yet but, by any reasonable accounting, it could be pretty soon. If …

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Written by Eli Lehrer on Sunday May 15, 2011

Debt Default Means New Recession

Tim Geithner has taken heat for suggesting that a debt default could lead to a double dip recession, but unfortunately he's absolutely right. There's no doubt that Tim Geithner is right to say that a debt default would result in a double dip recession. If anything, Geithner understates the case: a …

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Written by Eli Lehrer on Sunday May 15, 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