Line of the day, so far

“If too many Americans don’t believe in or understand what government does to help them, to offset recessions, to protect their security in retirement and in hard times, to maintain the infrastructure, to provide educational opportunities and health care decent enough to offset the disadvantages so many are born with…if those functions are unknown, underfunded, and/or carried out poorly, why should they care about how much this deal or the next one cuts?”

Jared Bernstein

Truest lines of the day

“The debt ceiling is a joke. It serves no purpose except political posturing. It is not about the deficit – it is about paying the bills, and the U.S. will pay the bills.”

Calculated Risk

“The Treasury’s lawyers should simply announce at 9 am Monday morning that (a) since the Constitution prohibits questioning the validity of the national debt, and (b) since the continuing resolution that mandates spending through September 30 was passed later in time than the restriction on borrowing, that (c) the debt ceiling is a dead letter. This is so by the oldest of the principles of black-letter law: a law inconsistent with a previous law is deemed to repeal the previous law even if it does not do so explicitly.”

Brad DeLong

Best lines of the day

On its face, “cutting government spending” sounds to most people like a good idea. Even “cutting public spending” doesn’t sound too bad.

But what do we cut when we cut government, or public, spending? We don’t just cut the disbursement of funds. We cut what those funds purchase. And what do they purchase? They purchase goods and services. National parks. The U.S. Navy. Some slight assurance that our air, food, and pharmaceuticals won’t poison us. Public safety (not “government safety”). Education. Highways. Air traffic control. Bridges that don’t fall down. Enforcement of the rules that make a “free market” free, sort of. Basic research. The Smithsonian.

Hendrik Hertzberg

Best line of the day

“Congress consistently brings the government to the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations.”

President Ronald Reagan
September 26, 1987

Best line of the crisis, so far

BUFFETT: I can— I can— I can end the deficit in five minutes.

BECKY: How?

BUFFETT: You just pass a law that says that any time there’s a deficit of more than 3 percent of GDP, all sitting members of Congress are ineligible for re-election. Yeah. Yeah. Now you’ve got the incentives in the right place, right? So it’s capable of being done. And they’re trying to use the incentive now we’re going to blow your brains out, America, you know, in terms of your— of your— in terms of your debt worthiness over time, and that’s being used as a threat. A more effective threat would be just to say if you guys can’t get it done, we’ll get some other guys to get it down.

Warren Buffett on CNBC July 7, 2011

Best line of the day

“In the latest gambit in the debt limit talks, the GOP has figured out a way to make Obama take all of the blame for keeping interest rates down, paying Social Security recipients on time, and continuing to pay soldiers. No, wait. That wouldn’t be blame, that would be credit. We’re so confused.”

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