James Pethokoukis

The issue isn’t default but government shutdown

July 12, 2011

Here’s a great chart from Goldman Sachs that shows how government revenues and obligations will likely match up in August:

Goldman Sachs: Debt default is “extremely unlikely”

July 11, 2011

Here is what President Obama said this morning:

As all of you know, I met with congressional leaders yesterday. We’re going to be meeting again today, and we’re going to meet every single day until we get this thing resolved.

Eat our peas? When will government eat its peas?

July 11, 2011

The President of the United States, this morning:

It’s not going to get easier; it’s gonna to get harder. So we might as well do it now, pull off the Band-Aid, eat our peas

No big budget deal? Blame Obama, not Boehner

July 10, 2011

President Barack Obama could have done two things that might have saved his Mother of All Budget Deals.

Like Reagan at Reykjavik, Boehner passes on a bad deal

July 10, 2011

So in the end, it was bit of a Ronald Reagan moment for John Boehner on Saturday. Just as the U.S. president walked away from a bad arms control agreement with Soviet leader Mikhail Gorbachev at Reykjavik, Iceland in 1986, the House speaker passed on President Barack Obama’s mega-debt reduction deal in Washington.

Will Boehner pull a ‘Reagan at Reykjavik’ and walk?

July 10, 2011

Will House Speaker John Boehner commit Republicans to raising $1 trillion in taxes as part of President Obama’s last-minute push for as much as a $4 trillion debt reduction deal? Obama and the GOP meet Sunday evening, but things continue to develop quickly:

Ezra Klein accidentally argues against GOP accepting tax hikes

July 7, 2011

The WaPo’s Ezra Klein has cooked up a chart attempting to show previous debt deals had plenty of tax increases in them, even more than what Obama is demanding:

U.S. debt crisis might be on fast track

July 7, 2011

One of the outside economic-analysis firms that the White House likes to quote is Macroeconomic Advisers. Here’s what the firm said yesterday about where the U.S. economy is heading (bold is mine):

Obama’s $4 trillion Grand Bargain

July 7, 2011

The president says it’s time to go big (via Reuters):

After weeks of impasse, President Barack Obama and top congressional leaders are aiming for “something big” as they resume budget talks on Thursday to avert an imminent default. With Republicans showing new flexibility on taxes, Democrats say Obama will push negotiators to double their target to $4 trillion in budget savings over 10 years. That would be an ambitious goal, but there have been a few hints of progress since talks hit a brick wall two weeks ago.