PAYGO Shmago: Congress Will Pay for Jobless Benefit Extension With Loans

An unprecedented 13-month extension of unemployment benefits will be financed through "loans," according to congressional sources.

Contradicting earlier reports that the $56 billion tab would be covered by "unspent" federal funds, the reality is that -- surprise, surprise -- there is no such money lying around.

Apparently, Republican negotiators have gotten over their deficit concerns (currently at $1.4 trillion) and Democrats long ago abandoned their PAYGO (pay as you go) promise. So Congress --despite seething anger on the tax-and-spend left -- will just sign and drive this omnibus bill.

Some economists question the move.

"Additional unemployment benefits are not a good way to spend money right now," University of Maryland economist Peter Morici told Fox News. "It takes the pressure off the president to finally address what's broken in the economy. These palliatives simply don't work."