Paul Krugman: Debt Deal Will Worsen Employment Picture

Krugman laid it out on ABC’s This Week (via PoliticusUSA).

…basically the Republicans [said] we’ll blow up the world economy unless you give us exactly what we want, and the president said, ok. That’s what happened.

 We’re looking; I mean we used to talk about the Japanese and their lost decade. We’re going to look to them as a role model. They did better than we’re doing. This is going to go on. I have nobody I know who thinks the unemployment rate is going to be below 8% at the end of next year. With these spending cuts, …

Deal. But What Did The Democrats Win?

Widespread disgust
Read the blips: No New Taxes
Problems for states
Obama: “Is this the deal I would have preferred? No”

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CBC Chair Emanuel Cleaver: Debt Bill Is “A Sugar-Coated Satan Sandwich”

Rightward tilt
Black Caucus wants 14th Amendment invoked
Pelosi: House Democrats may not back deal

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Details Of The Deal

But who gets to be on the “super committee”?

Harry Reid Signs Onto Debt Deal

Harry Reid is the first top congressional leader to announce support.

The tentative agreement would guarantee enough borrowing authority to keep the government afloat into 2013.

The measure would provide an immediate hike in the debt limit, accompanied by the promise of trillions of dollars in future spending cuts.

Cuts in spending would be phased in over a decade. Social Security and Medicare benefits wouldn’t be cut, and taxes would be unlikely to rise.…

White House “Fine” With No Tax Revenues Until 2013

Obama economic advisor Gene Sperling says no new revenues to be sought for 18 months…

Why Republicans Win On Debt Deal And Democrats Don’t

It boils down to this, as Greg Sargent shows: Republicans were willing to let the country go into default, and Democrats weren’t.

Again and again, Dems drew lines in the sand that they promptly erased as the threat of default grew. A clean debt ceiling hike? Dropped. Cuts to Medicare benefits?…The insistence on revenue hikes? Withdrawn.

What make this all the more remarkable is that throughout this process, Republicans themselves conceded not just that a debt ceiling hike would be disastrous for America, but also that it was inevitable. Yet they were still able use the threat of default …

Republicans Ready To Declare Victory In Debt Talks

It’s largely Senate Minority Leader Mitch McConnell’s deal.

An eleventh-hour deal being negotiated by lawmakers and the White House would shrink the deficit by about $3 trillion in exchange for increasing the debt ceiling for 22 months. A first round of $1 trillion in deficit reduction would only include spending cuts, a Republicans demand, while the rest would be worked out in a bipartisan commission later this year.

Senate Democratic Policy Committee Chairman Charles Schumer (D-N.Y.) acknowledged that conservative Republicans were able to get their way in the talks.…

The Debt Deal: Too Much, Too Little, Too Late?

No tax increases; lots of cuts; lots of Republicans who should be celebrating if the leaked framework is true.

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Live Blogging The Debt Deal

At Washington Wire…

Peggy Noonan: “Nobody Loves Obama”; “He’s A Loser”

What the hell?…