Contributed by: filbert Tuesday, June 07 2011 @ 01:41 AM CST
So my advice to the spending hawks on Capitol Hill — of both parties — is to listen to China, stand firm and get something big in return for raising the debt limit. At minimum this would be getting at least $1 in spending cuts for every $1 increase in the debt ceiling, along with the spending caps found in the McCaskill-Corker bill. Even former Clinton economist Alice Rivlin thinks raising the debt ceiling should be linked to a long-term budget plan.Personally, I'd hold out for $2 in real budget cuts for every $1 in debt ceiling increase, but I'm kind of a budget "hawk" anyway. Actually, my opening position would be about $4 in real budget cuts PLUS $1 reduction in the debt ceiling. That would, in my opinion, be most fiscally responsible--cut spending AND use most of the spending cuts to reduce the debt.
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