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    Backdoor Bailouts Begin

    The Treasury Department’s release of $100 million from the Hardest Hit Fund last week amounts to a federal bailout of five Michigan cities without congressional oversight or approval. The Hardest Hit Fund, part of the 2008 Troubled Asset Relief Program, was intended to provide assistance to homeowners in states particularly … More

    Treasury Employs Extraordinary Measures to Spend Beyond Debt Limit

    After hitting the debt limit on March 19, the Treasury Department under Secretary Jack Lew is now employing its toolset of “extraordinary measures” to continue deficit spending without legally breaching the debt limit. It will provide about $260 billion in borrowing capacity, which should last beyond at least Labor Day, … More

    Washington Hits the $16.7 Trillion Debt Ceiling with $300 Billion in New Debt

    On May 19, the United States hit its debt ceiling after adding $300 billion in more debt since lawmakers suspended the ceiling in February. But the cash won’t run dry until at least Labor Day, according to Treasury Secretary Jack Lew, whose department can employ a variety of cash management … More

    Krugman Still Wrong on Federal Spending and the Economy

    A not-so-small cottage industry has grown up refuting liberal economist Paul Krugman’s public pronouncements. It’s not a hard industry to join, and there’s plenty of work, but it can be repetitive. Even so, Krugman’s recent writings opposing federal spending cuts for the sake of the economy are sufficiently troubling to … More

    The United States of Argentina?

    Is President Obama channeling Juan Perón? The President does seem to have a few things in common with the political descendants of the late Argentine dictator. For example, due to ongoing lawsuits stemming from Argentina’s still unresolved $100 billion sovereign debt default in 2001, Argentina’s current president, Peronist Cristina Fernández … More

    Debt Ceiling: Default Not at Issue, Federal Spending Is

    President Obama is expected to make his case for a debt ceiling increase at a press conference this morning. The development comes as House Republicans are reportedly weighing “default” and “government shutdown.” While it’s encouraging that conservatives are gearing up for a fight, it’s important that policymakers and the public … More

    Debt Limit: What Does It Mean to Raise It? (VIDEO)

    Raising the debt limit when you are already in debt and have no serious plan to cut spending isn’t good sense—for individuals or for governments. The federal government is borrowing more and more money without a plan to balance its budget now or in the future—just like the wayward father … More

    Deficit Spending and Debt: Lessons from Japan

    Deficit spending does not foster economic recovery. The U.S. and the world need to recognize the stagnation and inter-generational inequality caused by such spending, and for reference, they need not look further than Japan’s recent history of deficits. In addition to its two lost decades, Japan’s heavy borrowing means the … More

    Mr. Speaker and Mr. President: The Way to Save the American Dream

    The day after the election, Speaker of the House John Boehner (R-OH) called on President Obama to join in a bipartisan effort to cut federal spending, including by fixing entitlement programs, and to move to a better tax system that allows the economy to grow and create jobs. The Speaker’s … More

    Tea Party 101: Prepare for Tax Day

    Tomorrow, thousands of Americans across the country will organize on Tax Day to protest the tax, borrow, spend and bailout policies of Washington. Whether large or small, these demonstrations will all have one message in common: Enough! Over the past three months, Americans have seen an already out-of-control government spend … More