Tackling huge budget deficits and growing debt is essential for the United States to avoid a financial market crisis that would push interest rates higher and severely damage the U.S. economy, many economists have warned.
Compromise and statesmanship will be needed to cut spending and raise revenues to narrow the budget gap, and that might not be possible in
the current political environment, says at least one experienced budget expert.
“We’re certainly going to have a more fiscally conservative Congress next year,” Rudolph Penner, a former Congressional Budget Office director told a U.S. Chamber of Commerce forum. “The Tea Party, if nothing else, has certainly moved both the Republicans and Democratic Party to the right.”
However, that may not translate into a deficit-reducing budget deal that can pass the House of Representatives and the Senate and then get signed by President Barack Obama, he said.
“A real problem here is that the Tea Party is going to scare the bejeebers out of any Republican that is talking about compromise for fear of what will happen in the next primary,” Penner said. “There is no way we’re going to get out of this problem without a compromise between the two parties.”




Obama will appear on “The Daily Show with Jon Stewart” on Wednesday, Oct. 27, in the middle of a week of special episodes taped in Washington ahead of the Nov. 2 midterm elections. It all culminates with a Saturday rally on the National Mall.




You can tell it’s autumn in Washington: the leaves are changing color, Congress has flown away and the political surrogates are in full cry. For those unfamiliar with the phenomenon, the full cry of the surrogate can often be heard from coast to coast — or at least from Broadway to Reno, Nevada.
New York voters are plenty angry. But apparently they’re not so comfortable with “scary-angry” and that could be costing Republican gubernatorial candidate Carl Paladino some support, The New York Times reports.

Like father, like daughter?
