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Surprise! $2.4 Trillion Debt Ceiling Increase Means No Deficit Reduction for FY 2012, 2013
Monday, July 11, 2011 | Kristinn

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.


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: budgetdeficit; debt; debtceiling; default; deficit; economy; firefighters; police; regulators; teachers
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1 posted on 07/11/2011 8:35:59 PM PDT by kristinn
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To: kristinn

Yeah, the cuts are always in the “out” years. Of course, when the “out” years become the current year, there are not cuts.


2 posted on 07/11/2011 8:38:19 PM PDT by rbg81
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To: kristinn

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.


3 posted on 07/11/2011 8:38:58 PM PDT by one Lord one faith one baptism
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To: kristinn

Capital Strike!


4 posted on 07/11/2011 8:40:40 PM PDT by griswold3 (Character is Destiny)
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To: kristinn

Didn’t Urkel say he would veto a bill like this? hasn’t he staked all on tax increases?


5 posted on 07/11/2011 8:41:03 PM PDT by arrogantsob (Why do They hate her so much?)
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To: kristinn

The Bonehead better NOT as his political career will be over,but again maybe the guy has been paid well for his folding.


6 posted on 07/11/2011 8:42:00 PM PDT by Cheetahcat ( November 4 2008 ,A date that will live in Infamy.)
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To: kristinn

Same old bullshit.


7 posted on 07/11/2011 8:42:04 PM PDT by henkster (Ethanol belongs in a beer can, not a gas tank.)
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To: one Lord one faith one baptism
boehner is right there with him

Boehner definitely needs to be replaced. No question about it.

8 posted on 07/11/2011 8:45:32 PM PDT by BusterBear
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To: griswold3

zero hedge reports the fed pumped the most money into the markets last week since the collapse of Lehman. got gold??


9 posted on 07/11/2011 8:45:39 PM PDT by one Lord one faith one baptism
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To: henkster

Same old bullshit.


It’s like a big game of good cop vs bad cop.


10 posted on 07/11/2011 8:46:00 PM PDT by unkus (Silence Is Consent)
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To: kristinn

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.


11 posted on 07/11/2011 8:47:42 PM PDT by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: kristinn
When will the republican party start mailing the Vaseline coupons.

are is this another one of those no vaseline deals.

12 posted on 07/11/2011 8:47:53 PM PDT by org.whodat
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To: kristinn
When will the republican party start mailing the Vaseline coupons.

are is this another one of those no Vaseline deals.

13 posted on 07/11/2011 8:48:49 PM PDT by org.whodat
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To: arrogantsob
Didn’t Urkel say he would veto a bill like this?

Historically, the fact that he said he would counts as evidence that he won't.

14 posted on 07/11/2011 8:50:20 PM PDT by tacticalogic
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To: tacticalogic

Yeah, veracity is not one of the boy’s strong points.


15 posted on 07/11/2011 8:52:35 PM PDT by arrogantsob (Why do They hate her so much?)
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To: kristinn
Are we being set up to be snookered one more time?

Yeah, just like with that $100 billion in cuts the Republicans promised. Where is that? Oh, that can got kicked on down the road, too.

I call this the Wimpy Economy: We will gladly pay next year for all the spending we can do this year.
16 posted on 07/11/2011 8:52:46 PM PDT by TomGuy
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To: arrogantsob
hasn’t [Obama] staked all on tax increases?

Obama can say there are tax increases and Boehner can say there aren't. Sort of like each side declares victory and goes home.

17 posted on 07/11/2011 8:53:25 PM PDT by BusterBear
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To: kristinn

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.


18 posted on 07/11/2011 8:53:41 PM PDT by Revel
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To: kristinn

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.


19 posted on 07/11/2011 8:55:43 PM PDT by Williams (Honey Badger Don't Care)
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To: TomGuy

We won the last election, I think. Not sure.


20 posted on 07/11/2011 8:55:50 PM PDT by AGreatPer (Support the troops. Every Friday night at Walter Reed.)
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To: unkus

“Same old bullshit.”
To say that I have lost ALL faith in the government would be a gross understatement.


21 posted on 07/11/2011 8:55:56 PM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: kristinn

Wait until the Republicans find out the strategy for the 2012 elections. That they, they Republicans passed the largest deficit budget in the history of the U.S. The thing is, it is true, because the Democrats never passed a budget, they went with continuing resolutions, and special spending bills. The Republicans, dupes or liars, you pick. I find it hard to swallow that they are fooled for the 28 years straight that I have believed their BS about smaller govt, and a return to fiscal sanity. I don’t believe it now, and I am ashamed to say I did so in the past.


22 posted on 07/11/2011 8:58:35 PM PDT by runninglips (Republicans = 99 lb weaklings of politics.)
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To: kristinn
The proposed deficit reductions are spread out over the next ten years and appears to be non-existent for the current Congress and president.

Exactly!

Photobucket

Little nibbles here and there over 10 years (spun to sound like they’re huge budget cuts) aren’t anywhere near enough. - Sarah Palin

23 posted on 07/11/2011 9:02:09 PM PDT by death2tyrants
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To: AGreatPer

That’s what they want you to believe. In reality, the 2 parties act very much the same.


24 posted on 07/11/2011 9:02:32 PM PDT by Pining_4_TX ( The state is the great fiction by which everybody seeks to live at the expense of everybody else. ~)
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To: kristinn
The deficit reductions are over 10 years.
But the tax increases are entirely for next year? and the totals for both are the same?

WTF?

Will we have to replace the entire House next year?

25 posted on 07/11/2011 9:03:16 PM PDT by Publius6961 (My world was lovely, until it was taken over by parasites.)
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To: BusterBear

Well everyone knew there would be a DLI. Maybe someday people will realize that the Ultra Right does not control Congress. And I consider myself Ultra Right compared to the average American.


26 posted on 07/11/2011 9:04:22 PM PDT by arrogantsob (Why do They hate her so much?)
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To: AGreatPer
We won the last election, I think. Not sure.

One way to tell: Watch Boehner and McConnell.

Today, Obama threw down the gauntlet, so to speak, and declared that they would have a deal to raise the debt ceiling by August 2.

Who will cave? Obama and Dems or Boehner, McConnell and the Pubbies?

[Sadly, it is still a toss-up. One never knows what the Republicans will do -- stand firm or fold.]
27 posted on 07/11/2011 9:04:56 PM PDT by TomGuy
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To: kristinn

A 2.4 trillion deficit reduction with an increase in debt of 2.4 trillion? What kind of fertilizer of bovine origin is this?


28 posted on 07/11/2011 9:12:08 PM PDT by Fred Hayek (FUBO, the No Talent Pop Star pResident.)
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To: death2tyrants

The Force is strong with that one. She’s our only hope.


29 posted on 07/11/2011 9:15:29 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
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To: one Lord one faith one baptism

Thanks for adding that Kudlow is on to this. Glad I’m not the only one.


30 posted on 07/11/2011 9:16:22 PM PDT by kristinn (Lowering the IQ on FR since Jul 31, 1998)
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To: kristinn

Even if the “cuts” were real and legit, which we all know they are not, it comes out to $240 billion a year. BFD.

It’s a pack of lies that wouldn’t be worth anything even if they were 100% true.

The Republicans are clinically mentally ill if they believe that they are doing anything, while the Democrats are lying, despotic turds. The whole bunch of them are so deluded that they actually think they can legislate the laws of physics (the climate) and human nature (every thing else).

The can cannot be kicked much further down the road. These scum are destroying the lives of our children and grandchildren. And will merrily walk away after they do it.


31 posted on 07/11/2011 9:17:26 PM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: Williams

Yep. I guess the ‘professional politicians’ expected us to not notice.


32 posted on 07/11/2011 9:19:36 PM PDT by kristinn (Lowering the IQ on FR since Jul 31, 1998)
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To: Farmer Dean

To say that I have lost ALL faith in the government would be a gross understatement.


Exactly right.


33 posted on 07/11/2011 9:19:47 PM PDT by unkus (Silence Is Consent)
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To: kristinn

As long as a politician has someone else to blame and is sure he/she can get away with it, they’ll do it. Obama blames the Republicans. Republicans blame Obama.

I blame my representative in the House. He voted for Boehner.


34 posted on 07/11/2011 9:20:54 PM PDT by MontaniSemperLiberi (Moutaineers are Always Free)
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To: kristinn

JB & BHO...”We’ll get serious about balancing the budget in early 2013. There’s no way we’ll seek a hike in the debt limit then. We promise. Trust us.”


35 posted on 07/11/2011 9:23:57 PM PDT by ProtectOurFreedom
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To: henkster

No my friend, its not.

This is the most fiscally irresponsible, the greatest act of economic negligence and the greatest deficiency in foresight by our “leaders”, the most corrupt SOB’s in the history of America.

Its about bankruptcy.

Think about it. We are in a recession which has little hope of improving. We have a leader who is reading from a Post America World, a nation that is going through de-industrialization, and suffers depression era unemployment. The housing market has collapsed with no bottom yet, commercial real estate is going through the same////// need I say more? and oh- A president collapsing the private sector while taking over ~over 70 percent of the economy. GM/Chrysler? Union favors for votes. Transferal of wealth from shareholders/debt holders to the unions...scammy corrupt practice, but its about votes.

And then you have a stupid populace who is allowing this crap to go on.

Your grand children’s grandchildren will end up in debt indenture....having to pay for today’s indiscretions.

Its absolutely reprehensible and beyond reason and common sense.
Well beyond anything in the past and way over the top!


36 posted on 07/11/2011 9:26:41 PM PDT by himno hero
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To: ChildOfThe60s
...it comes out to $240 billion a year. BFD.

Absolutely right. Every analysis I've read says that when interest rates return to the mean of the past couple decades and when GDP growth comes in at 2% instead of the budgeted-for 4%, the deficit will grow by staggering amounts. To be able to service the debt under a realistic interest rate / growth scenario, federal government spending MUST be cut by half. That means cutting the spending about $1,700 billion every year. The fallacious $240 B / year is only 1/7 of that target. We are thoroughly hosed.

37 posted on 07/11/2011 9:33:46 PM PDT by ProtectOurFreedom
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To: TomGuy
"[Sadly, it is still a toss-up. One never knows what the Republicans will do -- stand firm or fold.]"

So, what you are saying is, our Freshman Class, the winners of the last election, are being taught how to fold?

38 posted on 07/11/2011 9:36:22 PM PDT by AGreatPer (Support the troops. Every Friday night at Walter Reed.)
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To: himno hero

Unfortunately, the “progressive’s” indiscretions go back to Woodrow Wilson, vastly accelerated by FDR, LBJ and now BHO. The Republic was doomed when FDR began his vote-buying using the public treasury and that pattern continued unabated for 80 years.


39 posted on 07/11/2011 9:37:08 PM PDT by ProtectOurFreedom
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Could the American people, by a majority, say “we default on your debt (the Federal Government) and refuse to pay?”. Then it wouldn’t matter whether or not these congressman or the president mandate this debt, because we shouldn’t be held responsible for their theft from us.


40 posted on 07/11/2011 9:38:03 PM PDT by Britt0n
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To: kristinn

If Boehner agrees to this, and the Republicans go along with it, the Republican Party, at least as it currently exists, is FINISHED.

Many of the Tea Party Representatives in the House and a few of the Tea Party Senators are liable to break off from the Republicans and go independent, or the Tea Party may just DEMAND a leadership coup IMMEDIATELY in one or BOTH chambers and a Tea Party revolt in the Primaries AGAIN.

In either case, the Republicans, if they fail to STAND this time, are DONE. NO MORE RINO crap. No more compromisinivg away something for NOTHING. No more giving away EVERYTHING and getting NOTHING in return.


41 posted on 07/11/2011 9:47:37 PM PDT by patriot preacher
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To: kristinn

If Boehner agrees to this, and the Republicans go along with it, the Republican Party, at least as it currently exists, is FINISHED.

Many of the Tea Party Representatives in the House and a few of the Tea Party Senators are liable to break off from the Republicans and go independent, or the Tea Party may just DEMAND a leadership coup IMMEDIATELY in one or BOTH chambers and a Tea Party revolt in the Primaries AGAIN.

In either case, the Republicans, if they fail to STAND this time, are DONE. NO MORE RINO crap. No more compromisinivg away something for NOTHING. No more giving away EVERYTHING and getting NOTHING in return.


42 posted on 07/11/2011 9:47:42 PM PDT by patriot preacher
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To: kristinn

Percent change in deficit under various Presidents:

1991______21.8%__G.H.W. Bush
1992_______7.9%__G.H.W. Bush
1993_____-12.2%__B. Clinton
1994_____-20.3%__B. Clinton
1995_____-19.3%__B. Clinton
1996_____-34.5%__B. Clinton
1997_____-79.4%__B. Clinton
1998____-412.2%__B. Clinton
1999______81.9%__B. Clinton
2000______88.0%__B. Clinton
2001_____-45.8%__G.W. Bush
2002____-223.6%__G.W. Bush
2003_____139.0%__G.W. Bush
2004_______9.3%__G.W. Bush
2005_____-22.8%__G.W. Bush
2006_____-22.0%__G.W. Bush
2007_____-35.3%__G.W. Bush
2008_____185.0%__G.W. Bush
2009_____208.1%__B. Obama
2010______-8.4%__B. Obama
2011______27.2%__B. Obama


43 posted on 07/11/2011 9:59:22 PM PDT by PieterCasparzen (It's not difficult.)
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To: kristinn

They are just rearranging the deck chairs on the Titanic.


44 posted on 07/11/2011 10:01:01 PM PDT by microgood
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To: kristinn

Interesting: a fight mostly between private interests and local public interests within the same party, and the private interests don’t realize which other constituents they’re competing against for the attentions of their politicians.


45 posted on 07/11/2011 11:31:10 PM PDT by familyop (We Baby Boomers are croaking in a thunderous avalanche of rottenness smelled around the earth.)
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To: TomGuy
"[Sadly, it is still a toss-up. One never knows what the Republicans will do -- stand firm or fold.] "

All I can say is, if you don't know by now, you ain't been paying attention.

46 posted on 07/12/2011 12:03:01 AM PDT by matthew fuller (Forget impeachment- Extradite obama, biden, clinton and holder. Country saved!)
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To: ProtectOurFreedom
"vastly accelerated by FDR, LBJ and now BHO."

vastly accelerated by FDR, LBJ, GWB, and now BHO. There now- all fixed.

47 posted on 07/12/2011 12:08:47 AM PDT by matthew fuller (Forget impeachment- Extradite obama, biden, clinton and holder. Country saved!)
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To: kristinn
And let's not forget the tax increases that the Democrats have already gotten:

Taxes Upon Taxes Upon . . . Obama wants $1 trillion in taxes on top of what he's already signed.

48 posted on 07/12/2011 12:15:17 AM PDT by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: kristinn

These people need to go.


49 posted on 07/12/2011 1:10:31 AM PDT by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
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To: kristinn

“$2.4 trillion to get the government funded into early 2013.”

Planned right in time for Vampire-Care implementation.


50 posted on 07/12/2011 1:41:23 AM PDT by Varsity Flight
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