Skip to comments.Surprise! $2.4 Trillion Debt Ceiling Increase Means No Deficit Reduction for FY 2012, 2013
Posted on 07/11/2011 8:35:51 PM PDT by kristinn
Media reports today are that a target of $2.4 trillion in deficit reductions is being negotiated to match an increase in the debt ceiling of $2.4 trillion to get the government funded into early 2013. The 18 months of borrowing from August 2011 through February 2013 works out to an annual rate of $1.6 trillion. That means the current deal allows for more deficit spending than FY 2011 ($1.5 trillion) and much more than the White House proposed earlier this year for FY 2012 ($1.1 trillion).
The proposed deficit reductions are spread out over the next ten years and appears to be non-existent for the current Congress and president. In other words, this Congress and president have authority only to finance FY 2012 (begins Oct. 1, 2011) and FY 2013 (begins Oct. 1, 2012.) and could jack up the deficit another $2.4 trillion. The rest of the deal can be undone by future Congresses and presidents.
Are we being set up to be snookered one more time? It appears so.
Yeah, the cuts are always in the “out” years. Of course, when the “out” years become the current year, there are not cuts.
larry kudlow pointed out the same fact, thanks for posting this. what a sham obama is foisting on us and boehner is right there with him. for phony numbers coming soon, just like the continuing resolution agreement.
Didn’t Urkel say he would veto a bill like this? hasn’t he staked all on tax increases?
The Bonehead better NOT as his political career will be over,but again maybe the guy has been paid well for his folding.
Same old bullshit.
Boehner definitely needs to be replaced. No question about it.
zero hedge reports the fed pumped the most money into the markets last week since the collapse of Lehman. got gold??
Same old bullshit.
It’s like a big game of good cop vs bad cop.
Hey, that’s only $7,700 of additional debt for every person in the United States accrued over not quite two years - What’s that translate to? A drop in the buying power of the dollar of 10%?
Hey, everyone, you get shafted with more taxes, and you just took a ten percent pay cut! Let’s celebrate with..oh, right, more taxes.
are is this another one of those no vaseline deals.
are is this another one of those no Vaseline deals.
Historically, the fact that he said he would counts as evidence that he won't.
Yeah, veracity is not one of the boy’s strong points.
Obama can say there are tax increases and Boehner can say there aren't. Sort of like each side declares victory and goes home.
Yup just like with the current budget. Pure deception and lies. But never forget that some of the key players are the so called republican Heroes. Funny how the conservative base falls for it again and again.
It is a good question why they are talking about a ten year debt deal when the debt ceiling will only be raised for a couple of years.
We won the last election, I think. Not sure.