In the age of terrorism, "they're gonna make you eat dog food" has become "they're gonna completely destroy the country and we will all cease to exist". As a society, we've gone to 11. It's like if pundits are not calling each other Nazis and terrorists, they're not even trying.
I can't wait to find out who "saved us at the last moment" like a fireman running into a burning building. That oughta be a hoot.
If that 2.4 Trillion figure includes Reid's "winding down of the wars" that were going to be wound down anyway... this feels like much ado about nothing.
Congressional Leaders to Pitch Debt-Reduction Compromise to Caucuses - FoxNews.comAccording to the president, the deal means an immediate cut of $1 trillion in government spending over a 10-year period accompanied by a $900 billion increase in the debt ceiling. That will be followed by the creation of the committee to come up with additional cuts worth at least $1.5 trillion. The debt ceiling will be raised by $1.5 trillion if the committee recommendations are approved by the end of the year.
Wow, "immediate cuts" that take 10-years to work. The committee idea is not as bad as I thought - still has to get passed by congress, and if it doesn't, $1.5 trilliion in "cuts" automatically take place. But the devil is in the details, so really need to know what's getting "cut" (i.e. increased at a slower rate).
My initial thought on the agreement is that it is modest on the fiscal consolidation side (about $1 trillion in reduced spending with the rest to be determined later via a Committee or an automatic spending reductions formula). There are no mechanisms that actually target deficits (whether in absolute dollar terms or relative ones as a share of GDP), even as such mechanisms might bolster credibility. This agreement, while weak on the fiscal consolidation side, was necessary to prevent the onset of a self-inflicted crisis and it should be approved by the Congress. However, the work toward a credible fiscal consolidation program remains to be pursued in the future and probably won't commence until at least after the 2012 elections. The bottom line is that an immediate avoidable crisis was averted, but the nation remains on a fiscally unsustainable trajectory for the medium-term and beyond. The small downpayment on fiscal consolidation has not fundamentally changed that trajectory.
Last edited by donsutherland1; 08-02-11 at 12:56 PM.