Tentative deal?
ABC is reporting there may have been agreement reached between Congressional Republicans and Democrats.
Here, according to Democratic and Republican sources, are the key elements:
- A debt ceiling increase of up to $2.1 to $2.4 trillion (depending on the size of the spending cuts agreed to in the final deal).
- They have now agreed to spending cuts of roughly $1.2 trillion over 10 years.
- The formation of a special Congressional committee to recommend further deficit reduction of up to $1.6 trillion (whatever it takes to add up to the total of the debt ceiling increase). This deficit reduction could take the form of spending cuts, tax increases or both.
- The special committee must make recommendations by late November (before Congress’ Thanksgiving recess).
- If Congress does not approve those cuts by December 23, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare. This "trigger" is designed to force action on the deficit reduction committee’s recommendations by making the alternative painful to both Democrats and Republicans.
- A vote, in both the House and Senate, on a balanced budget amendment.
Of course we’ve seen deals much like this before. Committees never seem to get around to the promised business and triggers never seem to get pulled and, as anyone would tell you now, the balanced budget amendment will never pass. Meanwhile, Obama is authorized to spend another 2 plus trillion we don’t have.
Madness. Smoke, mirrors and madness.
~McQ
Twitter: @McQandO
In ten years time the US economy is likely going to be a smoldering hole in the ground. That’s assuming Iran or someone else doesn’t make a sizable portion of the US a smoldering hole first.
Of course, the appartchiks and the political elite will live in luxury at the head of what’s left to the 100% command economy.
How bad is it? http://usdebt.kleptocracy.us/
And it all come dues in just about a generation. Does anyone expect our brain-dead, burger-flipping liberal arts “yutes” to close that gap?
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Somehow they always figure out a way to sell out the American public.
Sharpshooter says “ten years time…”
Anyone besides me noticing the price of precious metals lately? They’re NOT going up because of an increase in their value.
Personally, I would LOVE to hear members of Congress try and explain why a measure to force the government to not spend more than it makes would be bad. It would be pure comedy gold, and fodder for the next round of elections.
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It’s disappointing as he** but nominally better than what it could’ve been….there’s no new taxes and a BBA vote. And for what it’s worth, media spin aside, this is an agreement that favors the GOP, so Obama is weakened.
New narrative: If you want real change, get Obama out of the White House.
“Committees never seem to get around to the promised business and triggers never seem to get pulled and, as anyone would tell you now, the balanced budget amendment will never pass. Meanwhile, Obama is authorized to spend another 2 plus trillion we don’t have.”
Nailed it.
The only thing I would add is that any cuts that will be made will be of the baseline variety which are only accounting cuts. Instead of increasing spending by a trillion dollars they’ll increase spending by 999 billion dollars. As usual, this will be called ‘draconian’ with threats of starving children and old people living in the streets.
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As I said on my thisispointless Twitter feed:
“An optimist thinks the politicians in DC will reach a compromise on raising the debt ceiling. A pessimist fears that this is true.”
I just wanna say that having a Jackal for a twitter avatar is awesome…
On a side note, is anyone else having trouble with the comment widget in IE9?
McQ – Meanwhile, Obama is authorized to spend another 2 plus trillion we don’t have.
And this is the key point: this whole mess is about spending MORE money that we simply don’t have. It’s really incredible.
Scott Jacobs – I would LOVE to hear members of Congress try and explain why a measure to force the government to not spend more than it makes would be bad.Â
Oh, get ready ‘cuz it’s coming, but I don’t think anybody will be laughing. May I suggest a preview:
“The so-called balanced budget amendment is a disastrous idea that will endanger the most vulnerable in our society by gutting the programs that they rely upon for food, housing and medicine while rewarding millionaires who have already profitted too much by the Bush-era tax cuts…”
Oh, f*ck it. We all know what they’ll say. The sorry thing is that ALL of them will be saying it. A BBA would jeopardize their ability to spend OUR money buying votes, and they ain’t gonna put up with that. A BBA is the equivalent of tearning up a spolied teen’s credit card, and we can expect a very similar tantrum.
Nonetheless, a few weeks ago the fulcrum was “revenue increases” and now it’s not. I see this as the beginning of the beginning.
Yep. And really, this is round 1 of many rounds to come as we simply don’t have the money.
Libs and Dems will not be enjoying the next decade or so I think.
I doubt the rest of us will fare better. You saw the tantrums they threw in WI. You see the tantrums they throw overseas about this stuff.
You ain’t seen nothing yet
Tantrums? But they are the ADULTS.
By self-proclamation, anyway.
/sarc off
“Committees never seem to get around to the promised business and triggers never seem to get pulled and, as anyone would tell you now, the balanced budget amendment will never pass. ”
Graham Rudwho?
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