End of a Rubber Stamp Era?

Where Will the Money Come From?

Jonathan Weisman writes in The Washington Post: "On Friday, as official Washington fretted over the potential fiscal calamity of Hurricane Katrina, the Treasury Department let Americans know where the money would come from to rebuild the Gulf Coast: foreign investors.

"The latest Treasury report on foreign lending showed that investors abroad poured $101.4 billion into the United States in July alone -- a voracious clip -- to snap up stocks, bonds and everything else available. So while the federal government keeps spending and while tax cuts remain politically sacrosanct, continued foreign investment should help pick up the estimated $200 billion cleanup tab for Katrina and further postpone a final reckoning on the budget deficit."

John Dickerson , writing in Slate, reminds us of one famous example of Bush administration insouciance regarding deficits. He also uncorks one I hadn't heard before:

"Former Treasury Secretary Paul O'Neil says that when he tried to resist tax cuts, Vice President Cheney replied: 'Reagan proved that deficits don't matter.' During last year's presidential campaign, a senior administration official put their worldview more bluntly: 'Name me one person who has lost an election because of the deficit.' "

And Dickerson writes that historically, at least, White House aides have not thought that "all the carping about nickels and dimes and billions [on the Hill] is genuine. Members rail against a budget that's out of balance but then lunge to protect their pet projects when they're under the knife. (Karl Rove can reportedly do a spot-on imitation of a congressman who cycles from budget-cutting bravado to sniveling pleas for hometown pork.)"

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Agenda Watch

Kristin Roberts reports for Reuters: "The recovery from Hurricane Katrina may temporarily sideline some parts of U.S. President George W. Bush's domestic agenda, including efforts to make the administration's tax cuts permanent, U.S. Treasury Secretary John Snow said on Tuesday.

" 'It's taken over the national agenda and I think it will for a while,' Snow said of Katrina. 'I think it will push to the back burner some issues that otherwise would have been on the agenda now -- the estate tax, tax (cut) permanency, GSEs and other things.' Snow told the National Association of Federal Credit Unions.

"Snow's statement, which he offered before launching into prepared comments for the credit union audience, marked the first time a member of the Bush administration has said Katrina could cause delays in the broader economic agenda."

In a separate story, Reuters quotes White House spokesman Trent Duffy trying to walk back Snow's comments: "He's saying what we all are -- the Katrina recovery is the top priority, but we remain committed to President Bush's economic program, which has helped create millions of jobs."

But Murray and VandeHei write in their Post story that "White House officials said Snow was accurately reflecting Bush's intentions."

Supreme Court Watch

Steve Holland writes for Reuters: "Senate leaders warned President George W. Bush on Wednesday that his next nominee to the Supreme Court will likely face a far more contentious confirmation battle than John Roberts, who is poised to become U.S. chief justice."