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...near unanimous support. This support showed no signs of wavering when the Congressional Budget Office projected Wednesday that even before any new spending, the federal deficit will top $1.2 trillion this year. As Obama summed it up in a speech at George Mason University on Thursday, "There is no doubt that the cost of this plan will be considerable. It will certainly add to the budget deficit in the short term. But equally certain are the consequences of doing too little or nothing at all." (Read Obama's full remarks...

Author: /time Magazine | Title: Will Obama's Stimulus Package Work? | 1/9/2009 | See Source »

...weighing their political consequences. On New Year's Eve, the administration of Governor Arnold Schwarzenegger proposed a new budget plan that includes painfully deep spending cuts and $14 billion in tax increases. Although the proposal is not likely to be the one that finally passes, there is no doubt that few Californians will be untouched by the fiscal crisis. In December, unable to wait for a budget solution any longer, the state pre-emptively canceled $3.8 billion for 2,000 public infrastructure projects, including new prisons, veterans' homes and highways...

Author: /time Magazine | Title: The Great California Fiscal Earthquake | 1/8/2009 | See Source »

...President-elect Barack Obama admitted as much in a major speech on Thursday, making the case for Congress to act quickly on his plan, dubbed the American Recovery and Reinvestment Plan. "There is no doubt that the cost of this plan will be considerable," he said. "It will certainly add to the budget deficit in the short term. But equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, incomes and confidence in our economy." (Read Obama's full remarks...

Author: /time Magazine | Title: Obama's Stimulus: Jump-Starting His Long-Term Agenda | 1/8/2009 | See Source »

...Perhaps more threatening than the rockets themselves was the doubt they cast over Israel's vaunted power of deterrence, which is key to keeping its hostile neighbors at bay. That power was badly eroded in 2006, when Hizballah was able to withstand the Israeli onslaught, force a cease-fire and claim victory in the process. That surely emboldened Hamas, which intermittently sent rockets into southern Israel and finally prompted Israel to respond in force. As respected Israeli columnist Nahum Barnea wrote in the Hebrew daily Yedioth Ahronoth, "A country that is afraid to deal with Hamas won't be able...

Author: /time Magazine | Title: Can Israel Survive Its Assault on Gaza? | 1/8/2009 | See Source »

...peace proposal promoted by France and Egypt remains on the table, but for now Hamas has said no to it. The Islamists doubt that Egypt can be an honest peace broker, as it is allied with Israel and the U.S. and is politically antagonistic to the Islamist movement. Hamas says it is refusing Israel's key demand for an international force to be deployed on the Gaza-Egypt border to prevent arms smuggling. "It will be doing the job of protecting Israel, not the Palestinians," said the Hamas official...

Author: /time Magazine | Title: Prospects for a Truce Still Dim in Gaza | 1/8/2009 | See Source »

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