Posts Tagged ‘debt ceiling’

Federal Debt Climbs Past Annual GDP


Saturday January 14th, 2012   •   Posted by Emily Skarbek at 7:54am PST   •   9 Comments

I could not resist posting this beautiful graph of the current state of the momentousness US debt. The graph is particularly useful for eyeballing the historical path of U.S. debt to GDP. Often pundits will say that our current debt-to-GDP ratio is not unreasonable because it is not too high relative to the period…
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Gang of Six Plan


Friday July 22nd, 2011   •   Posted by Emily Skarbek at 6:55am PDT   •   0 Comments

The latest effort coming out of Capitol Hill to reduce the debt and avoid default is called the “Gang of Six Plan”, named after its three Democrats and three Republican authors. The plan includes $500 billion in immediate “budget savings”, reductions in marginal income tax rates, and the abolition of the alternative minimum tax….
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3 Reasons Why the Debt-Ceiling Debate Is Full of Malarkey


Friday July 15th, 2011   •   Posted by Emily Skarbek at 11:59am PDT   •   5 Comments

U.S. Debt or Default: False Choice on Why the U.S. Debt Ceiling Should Not Be Raised


Thursday July 14th, 2011   •   Posted by Emily Skarbek at 5:16pm PDT   •   2 Comments

With the White House and the House of Representatives still at loggerheads over how to resolve the debt crisis, administration officials are turning up the heat, claiming that Washington has only two choices: increase the governmentís borrowing capacity beyond the current $14.3 trillion limit or face a catastrophic U.S. Treasury default. If the latter…
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Unemployment Up to 9.2%: Obama Wants Far More Spending, Debt and Taxes


Friday July 8th, 2011   •   Posted by David Theroux at 5:38pm PDT   •   1 Comment

With the official unemployment rate having now risen to 9.2%, Patrick Buchanan notes in his new column, “An Establishment in Panic,” that another 7% are underemployed and economic growth is a very weak 1.8%. Obama’s predictable answer is higher taxes and to raise the federal debt ceiling so that even more spending and debt…
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Alternative Debt Solutions: Intergovernmental Debt and Asset Sales


Wednesday July 6th, 2011   •   Posted by Emily Skarbek at 5:51am PDT   •   5 Comments

Ron Paul has gone public with proposals for the Fed to destroy $1.6 trillion in government bonds that it is currently holding. As The New Republic’s Dean Baker reports, such a plan might be a way around the impass that has mounted on the Hill. Aside from the practicalities of politics, Paul’s plan is…
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New Day of Reckoning


Friday July 1st, 2011   •   Posted by Emily Skarbek at 6:00am PDT   •   2 Comments

The White House is now reporting that the debt day is approaching faster than expected. August 2nd was the cut-off date for negotiating a deal, but now Congress must agree to a deficit-reduction deal by July 22 to avoid hitting the limit. Meanwhile, Republicans and Democrats are deadlocked in opposing positions. Included in one…
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How Costly Would a U.S. Default Be?


Monday June 27th, 2011   •   Posted by Emily Skarbek at 10:05am PDT   •   1 Comment

Discussions of a Treasury default all share one common featureóno one is certain as to what a default would actually entail. A recent article in The Economist highlights a study by Terry Zivney (Ball State University) and Richard Marcus (University of Wisconsin-Milwaukee) that looked at the last instance of U.S. default in 1979. The…
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Bernanke Responds to Incentives


Wednesday June 15th, 2011   •   Posted by Emily Skarbek at 9:59am PDT   •   1 Comment

Bernanke urges for an increase in the debt ceiling, demonstrating the wisdom of James Buchanan and Richard Wagner. In Democracy in Deficit, Chapter 8, the authors set out to model Keynesian-oriented fiscal policy with the “the plausible hypothesis that monetary authorities are, like elected politicians, subjected to both direct and indirect political pressures, and…
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Federal Debt vs. Terrorism – Which Is a Bigger Threat?


Tuesday June 7th, 2011   •   Posted by Emily Skarbek at 3:49pm PDT   •   3 Comments

Last year, Americans believed Federal government debt to be just as dangerous as terrorism. According to the a June 2010 Gallup poll, 4 in 10 Americans ranked both Terrorism and Federal Debt as an “extremely serious” threat to the future well-being of the United States. One year later, Osama bin Laden is dead. The…
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