Saturday, July 30, 2011

BREAKING: Divided Government to the rescue on the debt ceiling "crisis"

ABC's John Karl reports that a deal in principle has been struck between our Democratic President and Republican leadership in Congress:

"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."
Hmmm. Let's see - significant cuts across the board, cuts to the military, cuts in entitlements, a vehicle for revenue enhancement and even more cuts later, and all on the brink of default to the dissatisfaction of both the right and left.

This will pass on a narrow bipartisan vote over even narrower bipartisan opposition from the extremes of both parties. Just the way it is supposed to work.

The Dividist is not one to say "I told you so". But - just this once - He would like to take this opportunity to mention that - um - he told you so.

Divided and Balanced.™
Now that is fair.

1 comment:

Geeze said...

This is such smoke and mirrors.

The debt ceiling is increased for 2 years or thru 2013. The deficit must be reduced that much but has a time frame of 10 years.

So in reality the debt could increase 10 trillion over the next 10 years yet they only cut 2.5 or so trillion from it.

Pretty obvious what they are doing.....continuing to get their drug fix while lying to their JOHN as the pimp collects even more money.