After outlining the budget process, I detailed the use of continuing resolutions to fund the government in the absence of an approved budget . Next, I outlined the source of the government's revenue and the areas of federal expenditure. We noted that about 50% of the federal budget is spent on Medicare and Social Security and about 18% on defense. We then discussed the political ideologies of the parties on balancing the budget and raising the debt ceiling. Specifically, we discussed how each party would propose to cut federal spending or address revenues.Matthew offered ideas for reducing the budget deficit but noted the political obstacles to implementing his proposals. I then reviewed the terms fiscal policy and monetary policy and discussed how Congress might be able to influence the Fed other than by passing legislation,for example by holding up confirmations for nominees to the Board of Governors or by using its oversight powers to hold public hearings on the rationale for some of the Fed's decisions on raising or lowering interest rates.