Obama Plans to Slash Deficit by 2013

...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»

Pentagon's policies 'outdated'; deficit's the biggest threat: Romesh Ratnesar

(NEWSER) - The latest budget compromise may have resulted in “sweeping” and “historic” cuts, as the White House, Congress, and the media have claimed—yet “not a solitary penny” was cut from defense spending. Instead, spending will break $700 billion in 2011, which happens to be a post-World War II record and 35% of the world's total military spending. It’s time to get serious about reducing our defense budget, writes Romesh Ratnesar in Time . And neither President Obama’s nor Paul Ryan’s plans are brave enough to make the cuts we need. More»

'There's smart debt and stupid debt'

(NEWSER) - The debate over the deficit is being crippled by a failure to face up to what we need the government to do, writes EJ Dionne Jr. To have a rational debate about the budget, lawmakers should admit that running a deficit during a time of high unemployment is a good thing, and that government is going to have to grow in the coming decade to make up for private sector shortfalls in health insurance and pensions, Dionne argues in the Washington Post . More»

He wants to beef up domestic spending, raise taxes on rich

(NEWSER) - The major news outlets are getting details of the budget plan President Obama will unveil on Monday, and it sounds like it's designed to set up election-year comparisons with Republicans. Two big themes: It calls for higher taxes on the rich and big spending on roads and manufacturing projects. It also projects the 2012 deficit will rise slightly to $1.33 trillion before dropping to $901 billion in fiscal 2013. Other details: More»