Parties Head to Showdown as Obama Warns of a ‘Crisis’  —  WASHINGTON — The Democratic-led Senate and Republican-led House on Monday barreled toward a showdown on competing plans to cut spending and raise the debt limit as a resolution to the intensifying crisis remained out of sight just one week before a possible federal default.

Statement: Robert Greenstein, President, on House Speaker Boehner's New Budget Proposal  —  House Speaker John Boehner's new budget proposal would require deep cuts in the years immediately ahead in Social Security and Medicare benefits for current retirees, the repeal of health reform's coverage expansions …

SMASH THE CEILING  —  In the past few years, the U.S. economy has been beset by the subprime meltdown, skyrocketing oil prices, the Eurozone debt crisis, and even the Tohoku earthquake.  Now it's staring at a new problem—a failure to raise the debt ceiling, which would almost certainly throw the economy back into recession.

Tea Party Coalition Rejects Boehner's Debt Proposal (UPDATE) … UPDATE: 4:10 p.m. — A coalition of Tea Party chapters and conservative lawmakers on Monday rejected the debt proposal put forward by Speaker John Boehner (R-Ohio), despite his efforts to sweeten the deal with provisions favored by his conservative base.

Harry Reid Calls House Republicans' Bluff  —  Something you often see in negotiations is a mismatch between one side's stated sticking points and its real sticking points.  In the debate over the debt ceiling, for example, Republicans have sought to portray themselves as having two bottom lines.

House Republicans Solve Debt Limit Impasse by Cutting Spending  —  No place for tax hikes in final debt limit deal.  —  Americans for Tax Reform applauds House Republicans for providing another tangible plan to cut spending and avoid default.  Consistent with Leadership's promise …

Wonkbook: Republicans have won.  But can they stop there?  —  (YURI GRIPAS - REUTERS) We don't yet know what the final deal to raise the debt ceiling will be.  But now that Harry Reid is developing a proposal with $2.7 trillion in cuts and nothing in revenues, it's a safe bet that it won't include any tax increases.