Face It, Washington: Defense Budget Must Shrink

...even though 'this may bring my presidency down'

(NEWSER) - We already knew last night's debt talks did not go well —but not only did President Obama leave "abruptly," he really put his foot down, Talking Points Memo reports: "I have reached the point where I say enough," he said, according to those present. "Would Ronald Reagan be sitting here? I've reached my limit. This may bring my presidency down, but I will not yield on this." More of the latest developments:

• Obama reportedly gave both sides a deadline to determine whether they will seek long-term spending cuts or a short-term solution: tomorrow. His reason for leaving last night, at least according to one Democrat? Eric Cantor interrupted his closing remarks to push, for the third time, a short-term extension of the Aug. 2 deadline. Obama's response? "See you guys tomorrow."

President says budget talks will continue 'every day'

(NEWSER) - Compromise was the theme of President Obama's press conference today, during which he acknowledged that yesterday's budget talks did not result in a deal—but promised that "we're gonna meet every single day until we get this thing resolved." He insisted that he and "all the leaders" agree that we absolutely cannot fail to raise the debt ceiling and thus "allow the US government to default." He also confirmed he is still looking for "the largest possible deal," and that he appreciates John Boehner's "good-faith efforts on that front." Obama also noted that nobody is talking about increasing taxes right now. More»

Both parties' fixes amount to 'wishful thinking': Robert Samuelson

(NEWSER) - Republicans and Democrats both claim to have a plan to fix the budget, but neither party is offering a realistic approach. It’s time for Dems to admit that “spending control requires genuine cuts in Social Security and Medicare”—and it’s time for the GOP to recognize that “tax increases will be needed to balance the budget,” writes Robert Samuelson in Real Clear Politics . Instead, we’ve got “a public relations war,” with both sides employing “wishful thinking designed to make it seem that they're accomplishing more than they are.” More»

Congress would have to act if 'magical' growth fails to materialize

(NEWSER) - Amid the reaction to President Obama's budget speech (ranging from it was terrific to it was "a disgrace" ) at least two columnists think his proposed trigger—Congress would have to cut more spending or raise taxes if deficit targets aren't met—is significant. This "may be the most important specific proposal in Obama’s plan, and a sign of its credibility, because it addresses the glaring flaw in almost every budget proposal: magical assumptions about economic growth, tax revenue, efficiencies and cost reductions," writes Fareed Zakaria in the Washington Post . If those "magical" numbers don't materialize, "Congress is forced to act." More»

Goal hinges on Iraqi withdrawal, letting Bush's tax cuts lapse

(NEWSER) - Having proved he can get the government to pony up $787 billion to stimulate the economy, President Obama will now attempt to highlight his frugal side. Obama will unveil a budget Thursday that aims to cut the deficit—which could climb to $1.9 trillion in 2009—to $533 million by the end of his first term, the Wall Street Journal reports. The main savings would come from the Iraqi troop withdrawal and from letting Bush's tax cuts for wealthy families expire in 2011. More»