Lets’ Make A Deal
The President along with the Republican and Democrat leadership have announced they’ve reached a deal on raising the nations debt ceiling. Although the details are just now coming out, it appears to raise the limit $2,400,000,000,000 while cutting spending by approximately $900,000,000 per year starting in 2013. The deal sounds like a bad car dealer commercial… spend a lot now, cut a little later.
Even if the smoke and mirrors weren’t used, that of cutting a trillion dollars over 10 years while allowing 2.4 trillion of immediate debt, it would be almost 18 months until the first cut in spending would have to be done. What happens in 18 months… why 18 months? Oh, wait… isn’t there an election in 15 months? There will be no pain until after the next election. There will be no cutting until the next congress is elected and the current one is a lame duck.
A second part of the deal is to have a bipartisan committee work out an additional 1.4 trillion in cuts by the end of the year. This will be the 18th committee to attempt such budget cuts. The cuts are subject to an up or down vote or meidcare and defense will be subject to automatic cuts. The additional cuts are not subject to actually being passed, only being voted upon. Do you think these additional cuts will be passed… yeah, me neither.
Could this be a set-up? Could it be that any cuts that are passed in this debt limit increase would not be implemented until the next Congress is in session and the new Congress could simply repeal or re-prioritize the cuts? Is this just an example of how the political class maintains it’s power and puts the new tea party members in their place?
Lest we forget, even if all of this were legitimate… all we’ve done at this point is to lower the glide slope of debt. We’re still on pace to have a 21 trillion dollar debt by 2020. Yes, let’s make a deal… but not this one.
But I’m just sayin’…
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