Debt Compromise Reached
Now the trick is to see if it passes. I think if you look at the specifics, it's pretty obvious that the Republicans won. $1.2-2.8bn is spending cuts. Balanced Budget Amendment sent to Congress, and if the further reductions plan fails (voted down), automatic cuts in Medicare and defense.
ABC Reports Debt Compromise Reached
Personally, depending on the severity of the defense spending cuts, I would just vote down whatever the "Super Committee" recommends. Both of the proposed "automatic cuts" need to be reduced severely. Some of the liberals on here have contended that the Democrats in fact support a BBA, just not tacked on to what they see as an egregious bill. Ball's in your court on that one. I do hope that these "spending cuts" aren't just reductions in future spending increases like most of the prior plans have put forth. We need a balanced budget ASAP (probably over the next 5-7 years or so).
Hopefully this isn't like the budget where the Dems pulled a fast one. Either way we are probably getting downgraded since now S&P has been joined by Moody's.
You think it will pass OP?
Questionable. Since I (no one) has seen the specifics Idk if the spending cuts are real. If they are, it will pass as long as Reid can control his party since this compromise was formed mainly in the Senate. Democrats won't love it because of the chance to hit Medicare, Republicans will like it because of the BBA. It's more cuts than Boehner proposed, no new taxes, and future reductions/BBA are promised.
nobody won.
country lost because there are no legitimate cuts, just canceled future spending plans. republicans lost because the media made them look like idiots and now Obama will have no problems getting re-elected. democrats lost because they basically conceded everything without gaining anything.
basically typical govt bullshit. if a corporation handled there finances like this they would find everyone from middle-management upwards in jail.
LLCoolj,
Definitely agree!
I'm just pissed about all the taxes they collect from us for themselves. The younger generation will most likely never get any Social security or medicaid or any of that.
Not a surprise. This is just another example of how stupid our politicians are and how dumb we are since we vote for them. They're better at playground games than grammar school. They just like to get attention and feel important. Casey Anthony, debt ceiling, Libya, govt shutdown, etc. useless topics.
Democrats won. Its pretty simple, they get the spending authority to go through 2012 (which is really the only thing the campaigner in chief Obama wanted) so they wont have to be hurt by this before election time and they got the talking point to go back to their base and blame the Republicans for not getting more done ie "Revenue" Increases as they call them.
"Oh it wasn't our fault we couldn't get revenue increases in the bill, the Republicans held the American people hostage and in order to keep grandma from not getting her SS, we had to pass this hateful, anti poor, pro wealthy Republican bill"
I don't think this is necessarily true. Democrats wanted nothing. No spending increases/decreases no revenue increases/decreases. If spending is changed with no taxes I see it as a Republican victory. Yea Obama got his debt ceiling raised, but we weren't gonna raise it every 5 months without some type of negative market implications anyway. The BBA is a big victory for Republicans since Pelosi said Boehner has "gone to the dark side" by adding it to his bill. If the Tea Party can live until after the next Presidential election we will 100% have a BBA. There is no way that the Republicans don't have a majority in the Senate and I personally think that it will pass the states. Republicans control a majority of state legislatures- Democrats know that if it passes the Senate we will have an Amendment. There are enough Democrats with common sense to make it not that close (Republicans control 30 lower houses, 28 upper, and there are 25 states- inclusive- where they control both). I tend to think that the most liberal members (maybe exempting CA) go to Washington. Raising the debt ceiling only to January would hurt Obama but I think overall it would be seen as the republicans messing around. Obama already has dropped to 40% approval. Since he only won his "blowout" election vs. McCain with 52% I think if a viable candidate came up he would lose. If the bBA is passed, let's see Obama say how he triumphed the bill and we're on our way to "true fiscal responsibility".
Dog and pony show.
900b in cuts on future increases. A trigger for the rest. If no consensus the trigger hits Medicare and defense (mostly defense).
BBA only gets a vote. Not part of the actual legislation per the compromise.
That sucks. I just saw it when it was first posted so I wasn't sure. Every bill proposed outside of Rand Paul's and Cut, Cap, and Balance is this BS "cut in future increases". That is not a cut in any way shape or form. Paul said to cut spending by 1% each year, balanced in like 7 years. Real cuts, not this BS. Why can't we do that? I hope the Tea Party is still going strong when the Republicans take the Senate and Presidency :)
True, but I think the BBA will pass. The problem right now is Reid will block it in the Senate. Since they can't table it, I think it's a big step.
Cuts on future increases? I'm off to go buy some lube.
hahaha if I had a silver banana, it would be yours.
If there is a balance budget amendment to the constitution, does that mean that the government wont have the power to bail out any industries in the future (assuming it isnt running a surplus)? Is Keynsian economics official dead in the United States? It's a good thing the debt ceiling wasn't breached in 2008 half of the banks would have been wiped out.
This double dip recession has proved Keynesian economics don't work. If they did, wouldn't our economy be roaring by now?
Was this recession like the previous one though? I don't think the United States ever experienced a recession from a bank collapse.
But, none the less I can also argue that the spending projects we not big enough as you did see a increase in GDP and not a decline. Warren Buffet said it was Viagra with candy and many others have claimed it as well.
I think you have to look at the perspective of what would have happened to the economy if the spending hadn't taken place, where would it have been? I dont think its fair to say that Keynesian economics didnt work because growth isnt back at 3%, becuase if it wasnt for those measures maybe the growth would be -5%? Its the difference of looking at the scenario ex ante versus ex post, which is a mistake that we usually make when calculating the effect of economic measures.
Keynsian policy would still continue. All a BBA says is that the revenue and expenses must be equal, not that expenses cannot change or revenue must remain the same. If revenue slows and they want to continue spending, they'll just raise taxes or eliminate tax exemptions.
Lol, look at the GDP quarter to quarter a 3rd grader can tell you the trend line is pointing down. I think we will be in another recession in the upcoming two quarters after the one we are currently in.
What is your net income and **** size(all that matters to a classy pokemon like moi), pics and we might have a deal. Also, where do you work; I only accept bankers from KKR or Blackstone
The Republicans have come out looking awful, and are getting hit hard by the financial press. The WSJ ran a couple of articles a few days ago criticizing the Tea Party's actions, The Economist has been crushing the Republicans the whole time, everyone knows which side the NYT is on.
The money quote from The Economist's latest writeup, "The reason for this crisis is that instead of just raising the debt ceiling in the customary way so that the government can pay the bills Congress has already run up, the Republicans decided to point a pistol at the American economy and threaten to pull the trigger if they did not get the spending cuts they wanted."
"Sure, America needs to tackle its burgeoning entitlement programmes. But not now, when cutting spending will make an insipid recovery worse, and more especially not like this, hijacking a routine procedure and using it to bring the country to the edge of downgrading or default. At least the Republicans have done something? Gimme a break."
http://danieljmitchell.wordpress.com/2011/08/01/where-are-the-spending-…
Presented w/o commentary.
Ron Paul still has the best ideas and commentary on the situation. Why can't we implement a spending freeze? And go towards a balanced budget from there?
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