The do-nothing plan: now worth $7.1 trillion
Posted by Ezra Klein at 10:55 AM ET, 11/18/2011
In the past, I’ve talked about the “do-nothing plan” for deficit reduction: Congress heads home to spend more time with their campaign contributors, and the Bush tax cuts automatically expire, the 1997 Balanced Budget Act’s scheduled Medicare cuts kick in, the Affordable Care Act is implemented, and the budget moves roughly into balance. It’s not an [...]
By Dana Milbank, Monday, August 8, 5:40 PM
A familiar air of indecision preceded President Obama’s pep talk to the nation.
The first draft of his schedule for Monday contained no plans to comment on the downgrading of the U.S. credit rating by Standard & Poor’s. Then the White House announced that he would speak at 1 p.m. A second update changed that to 1:30. At 1:52, Obama walked into [...]
A few quick macro thoughts on the debt deal - J.P. Morgan – As you are no doubt aware, a deal appears imminent to resolve the debt ceiling impasse. We see four main economic implications of this deal
1) No default. This had always been a low probability (<1%) very high cost outcome, which now seems off the table.
2) An eventual S&P downgrade is still more likely than not, [...]
NEW YORK (CNNMoney) — Already enduring a two-year pay freeze, federal workers are once again in the crosshairs of a plan designed to cut government spending.
This time, their retirement packages are on the line.
At least one union has held discussions in recent days with officials from the White House, the Office of Management and Budget and Office of Personnel Management about changes to pensions.
At issue: [...]
House Budget chairman Paul Ryan just released the following statement in response to President Obama’s speech on deficit reduction:
“When the President reached out to ask us to attend his speech, we were expecting an olive branch. Instead, his speech was excessively partisan, dramatically inaccurate, and hopelessly inadequate to address our fiscal crisis. What we heard today was not fiscal leadership from [...]
Via Pension Pulse.
David Wessel of the WSJ reports, Budget Would Raise Pension-Insurance Cost:
President Barack Obama’s budget proposes to raise premiums the Pension Benefit Guaranty Corp. charges employers by $16 billion over ten years and, in a significant policy shift, would levy higher premiums on the riskiest companies.
The PBGC insures defined-benefit pension plans, those that promise a monthly sum based on [...]
“Social Security has also played a central role in the massive, six- decade Ponzi scheme known as US fiscal policy, which transfers ever- larger sums from the young to the old.
In so doing, Uncle Sam has assured successive young contributors that they would have their turn, in retirement, to get back much more than they put in. But all chain letters end, and the US’s is now collapsing.
The letter’s last [...]