A Threat Everyone Had Forgotten About Came Roaring Back Today

pat toomey

Photo: wikimedia commons

Lost amid the focus on Japan, The Mideast, and Europe is the fact that the US is still working on short-term stopgap budgets, and that the administration is still oceans apart from the GOP when it comes to the debt ceiling.All that came roaring back into the fore today.

According to FoxNews, budget negotiations have stalled out, with Democrats blaming Tea Partiers for wanting to shut down the government.

Meanwhile, more GOPers are coming out against a debt ceiling hike in the absence of big concessions. Pennsylvania Senator Pat Toomey said it would take big cuts now, and big structural reforms in order for him to agree to a hike. Others are calling for a balanced budget amendment, which would (at a minimum) be radically austere.

These aren’t vague issues. The current budget runs out in early April, and we’ll hit the debt ceiling sometime in May. As you focus on concerns abroad, don’t forget this huge domestic issue.

Click here to see Nouriel Roubini’s 10 big threats to the US economy >

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