Budget deficit

Having become disoriented in the fog of Corporate Uncertainty, I was trying to find my way when, suddenly, over the Fiscal Cliff I went. I plunged straight down — deeper and deeper into the abyss. I thought all was lost. But then I saw the Grand Bargain waiting for me, beckoning to me. For a moment, I rejoiced.

A recent CBO report on the long-term budget outlook has reheated deficit hysteria. But the points of fiscal stress the CBO highlighted were misleading, its alternative budget scenarios lacked range or nuance, and its treatment of "excess" growth in health care costs cavalier.

Despite the fact that revenues in many states are recovering, budget cuts that were once described as undesirable but unavoidable are being left in place (or even exacerbated) as numerous state legislatures opt to double down on tax cuts.

Might there be reasons independent of immediate job creation for the government to take advantage of historically low rates?

Get ready for spending cuts beyond the debt ceiling agreement. That deal only calls for spending caps, not spending floors. The regular appropriations process must be completed by Oct. 1, or else government operations shut down. The GOP will insist that those bills impose additional cuts. Any Democratic assertion of resistance will have no credibility in face of documented pattern of surrender. Oops. Turns out that costs and benefits of giving in to debt-ceiling hostage-taking were hopelessly miscalculated.