Posted on 07/27/2011 1:50:33 PM PDT by teg_76
The Republican Party has not sold the Tea Party out. the Republican Party is composed of Republicans and Republicans are Republicans. They cave. It is in their nature. It is in their genes. Democrats need to rule. Republicans need to feel loved by the Press.
Read Rush’s discussion of baseline budgeting. There are no cuts. There will be no cuts. The only way spending can be reduced sufficient for the economy to survive is to begin to progressively lower the debt ceiling while eliminating departments and programs. What departments and programs are scheduled to END in either Reid’s or Boney’s Plans? None? Then it is fraud by all involved, including such Tea Party folks as vote for any version of these plans.
Under Boehner’s plan the Debt to GDP ratio will go from 67% to 87%. Historically economies start to crash when that number goes over 90%. The interest payments start to compete for private dollars or runaway inflation kicks in.
Figure 10, This Time it’s Different: http://www.nber.org/~wbuiter/cr1.pdf (Warming! It’s a 124 page pdf.)
There will be no default. The interest will be paid. If there is no ceiling rise then programs must lose money to pay that interest. Do you believe we have to protect all programs and departments from cuts? Defense will be gutted with the debt ceiling as the excuse and defense will be gutted if the ceiling is raised, there will simply not be that particular excuse to use.
...and that’s the best case scenario.
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