The Economist:

PUBLIC finance can seem a dry, abstract subject until the point when it becomes all too real. Portugal and Greece managed for years with budget deficits, high public debt and low growth (Ireland, with the failure of its outsize banking sector, is a rather different case). Now they have been forced into painful restructuring by bond markets. On the other side of the Atlantic, America faces its most serious budget crisis for decades. On April 13th President Barack Obama is set to present yet another plan to reduce the country’s mammoth deficit. America’s economy is so large, and foreign appetite for greenbacks so voracious, that it seems inconceivable that it could suffer a fate similar to that of Portugal or Greece. The IMF’s World Economic Outlook (WEO), published this week, aims to shatter such complacency. America, its authors write, lacks a credible strategy for dealing with its growing public debt, and is expanding its budget deficit at a time when it should be shrinking. The chart below, drawn from the WEO, illustrates the size of the problem America faces.

Jennifer Steinhauer:

Among the winners in Friday night’s federal spending agreement, count Gov. Rick Perry of Texas.
Mr. Perry and Republican members of the Texas Congressional delegation have been seeking to shake off a requirement that the state use $830 million in federal education money to supplement the budgets of Texas schools, rather than simply using the federal money to replace state funds for schools.
The spending agreement reached Friday to avert a government shutdown included language to eliminate that provision. Texas, which like many states has massive budget problems, has moved to cut about $4.8 billion in state aid to schools over two years.

New Jersey Left Behind:

Everyone’s covering Gov. Christie’s conditional veto of Senate Bill 1940, which posits that if a collective bargaining unit (i.e., local arm of a teachers union) agrees to wage or benefits concessions then “the amount of money which would have been required to fund those wages and benefits shall be applied to the maintenance of bargaining unit stall member positions.” (See coverage from New Jersey Newsroom, The Record, Courier Post.)
The bill was approved by the Assembly on a vote of 69-11, and is sponsored by a bevy of 13 senators. It was apparently written by the NJEA executive office. From an editorial by NJEA President Barbara Keshishian that ran last month in the Star-Ledger:

Clive Crook:

The world had better start paying attention to the US government’s inability to govern. The prevailing mood over this has been strangely complacent. Six months of the fiscal year gone and only now a ramshackle budget? Government brought to the brink of shutdown over trifling disagreements? Absurd, one thinks, but this is Washington. Do as most Americans do, and regard the pantomime with blithe contempt. In the end, out of sheer exhaustion, the actors do their deals and it is business as usual.
So it proved with the shutdown farce. Capitol Hill and its followers tracked the quarrel avidly. TV news showed clocks counting down the hours and minutes before “inessential services” would be suspended. Talks between Congress and the White House were covered as though a nuclear strike was imminent. With an hour to go, a deal that no one understood was done.
The president stood before the cameras: “Americans of different beliefs came together again,” he said, as if expecting applause. Some laughed; most yawned.
The shutdown punch-up was a nuisance and proof of Washington’s recklessness, but little apart from political advantage was at stake. Mostly, it was theatre. But a real fiscal crisis is coming. The debt-ceiling fight, next on the playbill, raises the theoretical possibility of a government default. Beyond that, public debt keeps rising. The current dysfunction shows how hard it will be to stop.

Michael Ramirez @ Investors.

Rebecca Vevea:

There were no charter school unions in 2008, when the Chicago Teachers Union formed its Charter Outreach Committee to knock on doors and help charter teachers organize.
Nationally, 604 charter schools, roughly 12 percent, have collective-bargaining agreements. But 388 of those schools are in states where the law dictates that charters be included in existing collective-bargaining agreements with local districts, according to data collected by the National Alliance for Public Charter Schools. Illinois law does not require charter schools to be part of local collective-bargaining units.

Christopher Caldwell:

The high point in The Gallery of Antiquities, Balzac’s great novel of debt, comes when gendarmes are arresting the young Count d’Esgrignons for a forgery committed to cover his borrowing. The loyal notary Chesnel, attached to the d’Esgrignons family by generations of service, has already spent his own modest fortune to get the young count out of such scrapes, but he is at the end of his resources. “If I don’t manage to smother this story,” he tells the count matter-of-factly, “you’ll have to kill yourself before the indictment is read out.” The count realises in a flash that people have lent him money not because they have more than they know what to do with, or because he’s a nice guy, or because his privileges are the natural order of things. They have lent him money because they have made certain assumptions about his honour – misplaced assumptions, as it turns out.
Americans came face-to-face with their government debt this week and discovered that they are in the position of d’Esgrignons. There are several ways to measure how apocalyptic the situation is. The recent announcement by Pimco bond analyst Bill Gross that he was selling his long-term Treasury holdings has shaken people, and not just those who watch the business channels. In a memo laced with words like “staggering” and “incredible”, Mr Gross described himself as “confident” the US would default on its debt if did not reform its entitlement programmes (pensions and government healthcare). Mr Gross cited an estimate by Mary Meeker, a venture capitalist, that government unfunded liabilities stand at $75,000bn. To spend time with the federal budget is to suspect that the US is the sick man of the global economy.

Lloyd Grove:

Stockman described the impending showdown as a “wakeup call”–the political equivalent of getting whacked in the head by a two-by-four containing a rusty nail.
“And then,” Stockman added in a tone of lethal glee, “they’re going to be calling their own bluff. Because at that point the problem will remain 98 percent as large as it was the morning before.”
The 64-year-old Stockman, who made millions as an investment banker after serving as a Michigan congressman and then Reagan’s fiscal guru in the early 1980s, makes Debbie Downer sound like a cockeyed optimist. During a conversation punctuated by mirthless laughter, he characterized America’s elected officials as “the fools inside the Beltway,” dismissed House Budget Committee Chairman Paul Ryan, generally celebrated as the GOP’s brightest policy star, as “an earnest young man” who offers discredited ideology over practical solutions, and predicted a long and agonizing epoch in which incomes will fall, the economy will stall and reality’s bite will leave painful tooth marks.

Related: Videographic on Pensions.