James Pethokoukis

Where the debt ceiling debate might be headed

June 28, 2011

This decision tree from Societe Generale (via Business Insider)  seems more or less correct. I think there will be a deal by Aug. 2 (or whatever the deadline ends up being).  But it is the content of the final austerity plan that remains impossible to predict.

Does Pelosi want a debt ceiling crisis?

June 27, 2011

After watching Nancy Pelosi on Sunday, Jonathan Chait speculates that she just might:

Where we’re at in the debt ceiling debate

June 24, 2011

A few thoughts:

1) Rs had every right to walk out. Dems pushing unacceptable tax hikes (including, basically, axing Bush tax cuts, along with an automatic tax trigger and a host of  tax breaks done away with) with no real entitlement reform.

Debt ceiling talk hit impasse! Markets freak! Investors panic!

June 23, 2011

First, a summary of today’s galaxy-shattering news from my beloved colleagues at REUTERS:

China to US: Forget debt ceiling, cut spending

June 6, 2011

If you listen to Treasury Secretary Timothy Geithner and the rest of Obama administration, failure to raise the debt ceiling by Aug. 2 risks “catastrophic economic and market consequences of a default crisis.

GOP should ignore Moody’s debt ceiling warning

June 2, 2011

Team Reuters reports:

Moody’s Investors Service said on Thursday there is a very small but rising risk of a short-lived default by the United States if there is no increase in its statutory debt limit in coming weeks.

Ignore Geithner’s debt ceiling scare tactics

May 16, 2011

To employ the phrasing of Gov. Chris Christie, America hit the debt ceiling and didn’t vaporize. New borrowing has put the U.S. Treasury right up against its $14.3 trillion borrowing limit, but financial markets aren’t crashing over fear that this will lead to default.

Which party is at greater risk from a debt ceiling debacle?

May 12, 2011

Stu Rothenberg thinks there is plenty of danger to go around:

The nature of the Republican risk is obvious. If the GOP looks inflexible, excessively ideological and extreme, voters are likely to turn against it. This is more likely, of course, if Democrats look reasonable and emphasize their willingness to compromise. (Swing voters love the idea of compromise.) It’s also more likely if the most vocal and ideological elements of the GOP define their party.

Boehner really isn’t asking for that much to raise debt ceiling

May 10, 2011

On  its face, House Speaker John Boehner’s demand for perhaps more than $2 trillion in spending cuts may look like a dangerous escalation in the political battle over raising the federal debt ceiling by a similar amount. But the reductions would be over 10 years, they’d be in line with several budget proposals, and they would represent only a modest down payment on austerity.

Should Congress raise the debt ceiling? And for what price?

April 21, 2011

Conservatives have many flavors of views on this, as can be seen at an online symposium over at National Review Online. Here are two of the more interesting takes: