This ended up a longer post than I intended. I discuss current federal outlays and receipts and the debt limit. The sad fact is neither political party seem to treat the issue seriously.
Debt Limit Discussion, Radio Primer
Fiscal policy tempered the Fed’s taper
The Fed has been wrong about growth lately in their forecasts, and wrong in a very bad way. The Fed forecasts have not yet taken into account fundamental changes in individual behavior. It would not be a surprise that such forecasts were wrong during or in the immediate aftermath of the crisis, but to still be so wrong at this point is worrisome. What is the problem? People are scared.