Debt Ceiling: The Long Run Is Here

It's last call and you better be blind-drunk, three sheets to wind, because the saloon's only female, who's looking at you with a sly lascivious grin, is uglier than sin. When one hears David Beers of Standard & Poor's yesterday on Fox News state that his credit rating agency may downgrade U.S. sovereign debt even before the August 2 deadline on hiking the debt ceiling, one knows that time has pretty much run out, it's last call, and there's only one option, and it's ugly. There's only one way to avoid the downgrade: raise the debt ceiling, immediately cut spending by billions, and commit to cutting billions more -- soon, not in the "out years" a decade from now. The ever-reasonable Charles Krauthammer may well have the best plan out there, which he calls The Half-Trillion Plan: The Half-Trillion raises the debt ceiling by that amount in return for an equal amount of spending cuts. At the current obscene rate of deficit spending -- about $100 billion a month -- it yields about...(Read Full Post)