The S&P Downgrade
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An oldie from August, that I’ve been hanging on to, for some reason. Veronique de Rugy breaks down S&P’s memo about why they downgraded US debt to an AA+ rating.
The bottom line:
In other words, to avoid a downgrade, it would have been key in S&P’s opinion to show signs of willingness to cut (contain) Medicare …
Understanding the McConnell debt limit proposal
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Keith Hennessey explains what the McConnell debt limit proposal is, how it works, and what its political motivations are.
I still support “Cut, Cap, and Balance” as the best long-term plan. While I’d love to see it enacted, I don’t see it happening with this Senate and this President. I’d initially been disposed to strongly dislike …
Understanding the “Cut, Cap, Balance” Plan
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Keith Hennessey explains the “Cut, Cap, & Balance Act”.
The key to understanding this bill is that it focuses on government spending, rather than on taxes or deficits. The bill would achieve significant deficit reduction through cutting and limiting spending, and all of its mechanisms use spending rather than deficit targets.
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Myths About the Debt Ceiling
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Reason columnist and Mercatus Center economist Veronique de Rugy explains the truth behind some of the myths in the current debt ceiling debate.
If a deal is not reached by August 2, the U.S. will default on its debt. If the debt ceiling isn’t raised the government won’t be able to …
Why You Should Never, Ever Cosign a Loan for Anyone
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Very good advice, from Megan McArdle.
If you think that they really need the money, and that you’re not just helping someone dig themselves even deeper into financial irresponsibility, then my advice is to just give them the money.
Give them the money? I can’t possibly afford to do that!
Well, my friend, given the default rates of …
The Interest Payments Will Kill Us
We have to cut spending, so that we can stop borrowing, so that we can start paying down our existing debt. Why? Well, if we don’t, the interest payments on our debt will soon be the only thing left in our budget.
How Many “Flood” Synonyms Do You Know?
Four billion dollars? Yes, it is a lot, but consider the stakes. Here’s another interesting number: $414 billion — the interest the Treasury paid on our national debt this year. Worried about foreign money? Try that on for size.
Don't Be Fooled. Our Economy is Still Stuck in Neutral
The Myth of the Recovery
The gains on Wall Street have been goosed largely by government spending and guarantees, not the usual private sector–funded growth. And federal spending cannot continue indefinitely without deficits and debt service spiraling out of control. John Silvia, chief economist for Wells Fargo, says, “We have seen a recovery, but …
President Obama's $14 Trillion Deficit
Just in case you’re case curious, the current projected 10-year U.S. budget deficit is now $9.1 trillion. That’s on top of the $11.7 trillion of debt that the U.S. currently owes. The Wall Street Journal has further information on the rather grim news.
CBO predicts that debt held by the public as a share …
You Cannot Cut Out Part of My Life
The Wisconsin State Journal published a few local reactions to the Wisconsin’s ongoing budget debates. One reaction caught my eye.
Christa Decker of Madison said she depends on Medicaid programs for everything from her wheelchair to doctor’s visits to long-term care. Decker, 51, who has both physical and cognitive disabilities, said that cuts to …