Tag Archives: government default

Good News Coming On The Deficit. Well, Sort Of.

Posted on by

Syriza party leader Alexis Tsipras hopes to prevail in today's Greek elections, which could mark a turning point in his nation's struggle against a crushing load of debt. Meanwhile, U.S. government deficits are improving. Sort of.

Syriza par­ty leader Alex­is Tsipras hopes to pre­vail in today’s Greek elec­tions, which could pro­voke a show­down between Euro­pean lead­ers and Greece, which strug­gles under a crush­ing load of debt. Mean­while, U.S. gov­ern­ment deficits are improv­ing. Sort of. [Cred­it: BBC]

On Tues­day morn­ing, the Con­gres­sion­al Bud­get Office will announce that the fed­er­al deficit con­tin­ued to decline last year.

The announce­ment will trig­ger an orgy of self-con­grat­u­la­tion in Wash­ing­ton.  The Admin­is­tra­tion will claim that its poli­cies have been vin­di­cat­ed.  Repub­li­cans also will take a bow, tout­ing spend­ing con­straints they’ve imposed since win­ning the House majority.

But you’ll hear noth­ing from the Wash­ing­to­ni­ans who most deserve cred­it for reduced deficits: the Fed­er­al Reserve Board of Gov­er­nors.  By hold­ing inter­est rates near zero and lend­ing tril­lions in free mon­ey to the Trea­sury, the Fed has allowed the gov­ern­ment to reduce deficits even as it gorged on debt. Con­tin­ue read­ing →

Could A Wealth Tax Solve the Problem of Government Debt?

Posted on by

A recent IMF report suggests that this man's enormous wealth might help resolve the government's debt problem. [Credit: NY Post]

A recent IMF report sug­gests that this man’s enor­mous wealth might help resolve the gov­ern­men­t’s debt prob­lem. [Cred­it: NY Post]

The Inter­na­tion­al Mon­e­tary Fund (IMF) recent­ly report­ed that Euro­pean gov­ern­ments could reduce their debt back to pre-Great Reces­sion lev­els by con­fis­cat­ing 10 per­cent of the wealth held by their rich­est cit­i­zens. IMF isn’t rec­om­mend­ing that, of course.

They’re just sayin’. Con­tin­ue read­ing →

Republicans Should Join Democrats in Impeding Obamacare Implementation

Posted on by

Media reports indicate that Senate Majority Leader Harry Reid (D-NV) and Republican Leader Mitch McConnell (R-KY) are nearing an agreement on temporarily funding the government and increasing its borrowing authority. [Credit: Huffington Post]

Media reports indi­cate that Sen­ate Major­i­ty Leader Har­ry Reid (D‑NV) and Repub­li­can Leader Mitch McConnell (R‑KY) are near­ing an agree­ment on tem­porar­i­ly fund­ing the gov­ern­ment and increas­ing its bor­row­ing author­i­ty. [Cred­it: Huff­in­g­ton Post]

Octo­ber 14, 2013, 7:15 am

Sen­ate lead­ers are report­ed­ly clos­ing in on a deal that would both fund the gov­ern­ment and restore its bor­row­ing author­i­ty for a few months. The deal report­ed­ly con­tains two changes to the health care law, one pro­posed by Repub­li­cans, the oth­er by Democ­rats. The pro­vi­sion backed by Repub­li­cans is polit­i­cal­ly mis­guid­ed, unwork­able and would do lit­tle to impede the law’s imple­men­ta­tion; the pro­vi­sion backed by Democ­rats, by con­trast, appears to com­pli­cate imple­men­ta­tion of a law whose launch has so far not gone smooth­ly. Repub­li­cans who oppose Oba­macare should join Democ­rats in seek­ing changes that would dam­age its imple­men­ta­tion. Con­tin­ue read­ing →