Bachmann details $400 billion-plus in spending cuts

StarTribune.com ^ | 1/24/11 | Jeremy Herb

[ButThreeLeftsDo]

For weeks, Rep. Michele Bachmann has touted $450 billion in spending cuts to help get the country’s debt under wraps.

A detailed list of the cuts, which actually add up to a little more than $430 billion, reveals a conservative wish-list of federal programs to be downsized or outright eliminated.

Bachmann’s spending cuts span across the government spectrum, slashing everything from agriculture to Homeland Security to science funding. Some of her ideas, like defunding federal abortion grants, are red meat for conservatives. Others, like abolishing the Department of Education, would be considered more controversial.

The time period for the cuts is a combination of one and five years, according to her office.

Here are highlights of the cuts Bachmann is proposing:

[no-to-illegals]

full agreement from me.

[MinorityRepublican]

bttt

[Henchster]

$400 Billion?

You have got to be kidding me. Obambi has doubled spending in just two years, from $1.5T to $3T. How about we START by erasing every extra dollar the Kenyan added to the budget unconstitutionally and THEN start talking about some REAL cuts!

[AD from SpringBay]

I wonder how much money we saved when Chicago lost the playoffs? Great Leader will not go the Superbowl, so how many millions is that?

[Stegall Tx]

We need 3x $430B per year.

By my numbers, we need almost twice that again.

Budget FY2011 - $3.7 trillion.

Projected revenue FY2011 - $2.5 trillion.

Current debt - $14 trillion @ 1.3%.

If we were to amortize the debt over the next 30 years (the longest term we sell bonds) at today's interest rate, it would cost $560 million per year.

Revenue $2.5 trillion minus debt payment $560 million leaves $1.94 trillion per year to spend. Very close to needing to cut $2 trillion per year just to break even.

And if we don't start now, it will just get harder to do it later.

[Stegall Tx]

Uh, obviously the “million” numbers should all be “billion”s. Sorry

[MontaniSemperLiberi]

You’re right of course. I try not to get overly chicken little-ish here on FR.

How realistic do you think 1.3% is over 30 years?

I found the bond due dates on ustreas.gov (IIRC) today. I’m running cash flow analysis on the debt for the coming showdown between congress and Obama. The due dates are scary (but manageable from a cash flow basis, I suspect). If you remember, in the 90’s The Maestro and Clinton decided to finance a greater portion of the debt with short term bonds making us particularly susceptible to a forced default if inflation kicks in, bond buyers flee or some combination of the two.

[no-to-illegals]

I believe a portion of the problem is inflation numbers are being hidden. The FED is 'out of bullets' to fight the actual numbers. Fantasy is the new rule of thumb. Accounting is a tricky business. One minor correction, on the books is never minor, when the actual numbers are hidden. Cuts have to be deep. Departments should be eliminated. Duplication by different agencies should be eliminated. Trouble is, initially unemployment would rise. This would be good for the long run, for eventually our financial house would be put in order. In the short run the government would have been found out for the irresponsible idiots they have been and are. Much larger problems are hidden, so for the short run nobody is willing to tell the truth concerning the actual debt. In the long run, it would be better to come to reality, instead of living in fantasy. I do believe the people in charge prefer fantasy, for as long as fantasy or illusion can be cast as reality. This keeps the system generating on course toward the eventual train wreck. People are fed, children are not awaken to horror, the old are taken care of, and so many other things take place and life appears good, while the undercurrent takes all the people into deeper water unexpectedly, where being forced to swim will be an unknown to the masses. This is only my opinion.

I realize I paint a horrible picture with my words. I pray everyday this does not happen. I probably should not type my thoughts, for some have told me, your words bear eventual reality. This nation has always been in uncharted waters, yet this nation has always weathered the storm. The storm does appear to lay just ahead for our nation. I sense little to no help coming to aid our nation. May I be wrong, and God will help us once more.

[MontaniSemperLiberi]

Before I posted my precious comment I had “gloomy” in the place of “chicken little-ish.

I don’t think any who cares to look at these numbers and is good at figuring these kinds of things out with spreadsheets can help but be a gloomy.

So let me ask you this, given that we are headed on a path that is only accelerating and not enough seem to want to stomp on the brakes hard enough to stop this car, let alone reverse it, what are you doing?

[MontaniSemperLiberi]

precious = previous

[K-Stater]

It is a good start but again, it does not even begin to tackle the real problem. Her $400 billion in cuts over 5 years still leaves deficits of close to or over a trillion dollars.

[no-to-illegals]

what are you doing?

I am asking the members of Congress, who represent me, to return to sanity regarding spending. I already know I am requesting far too much when requesting spending restraint, based on the responses thus far, from those in my state at the local, state, and federal level. Thus my gloom. The numbers do not lie, in my opinion. Being this is a global recession, those who represent us do not understand what this last election meant, or perhaps those representing us did understand this last election, yet are choosing to ignore the voices of the people. Either way, cutting spending seems not to be the reality of those stepping forward to lead, rather prolonging the fantasy appears to be the objective of those leading. Not dealing with the reality of the numbers is a disaster, thus I call, write, and pray. I realize this is probably not enough, thus what would you suggest? I would really appreciate your suggestion(s).

[MontaniSemperLiberi]

You should have seen the email I sent Trey Gowdy (SC4) a few days ago. Someone on FR wrote, “If the Republicans vote for the deficit, they own the deficit” and that in a nutshell is my view on the Republicans’ responsibility and I let him know it.

I suspect the Republican strategy is to be clearly just a bit more responsible than the other party to avoid blame and when things go to hell, be asked to pick up the pieces. If so, they assume too much I think. There are enough people who know that if the House votes for it, the House is responsible and no one else.

For myself, I’m investing for extremes. Nothing in the bond market, a plurality in the US stock market a third overseas and the rest in metals. If it goes bust later, I’ll be back up in the mountains with expenses so low even the IRS won’t be able to find me. If it busts sooner, I’ll move overseas. Americans are a transient people.