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Supercommittee failure could trigger US credit downgrade, economists warn
guardian.uk.co ^ | 11/18/11 | Dominic Rushe

Posted on 11/18/2011 6:17:19 PM PST by ColdOne

Economists are warning of dire consequences if US politicians fail to make progress this weekend in tense talks aimed at reducing America's massive deficit ahead of a Wednesday deadline.

The bi-partisan congressional super-committee is charged with drawing up plans for a $1.2tn reduction in the nation's deficit by the middle of next week. Failure to do so will trigger an automatic "sequester" that will make cuts of that size to defence and social welfare programmes starting in 2013. But the two sides seem far from finding a solution after clashing over tax revenues.

(Excerpt) Read more at guardian.co.uk ...


TOPICS: Business/Economy
KEYWORDS: awjeeznotthisagain; catfoodcommittee; downgrade; supercommittee; supercongress

1 posted on 11/18/2011 6:17:22 PM PST by ColdOne
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To: ColdOne

Baloney....


2 posted on 11/18/2011 6:20:48 PM PST by ColdSteelTalon (Light is fading to shadow, and casting its shroud over all we have known...)
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To: ColdOne

Øbozo wins another round by playing the two sides off one another and staying “above the fray”. And America loses.


3 posted on 11/18/2011 6:21:39 PM PST by rockrr (Everything is different now...)
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To: ColdOne

The end result will be massive Defense cuts, which suits Obama just fine.


4 posted on 11/18/2011 6:23:34 PM PST by ClearCase_guy (Roll the stone away, Let the guilty pay, It's Independence Day)
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To: ColdSteelTalon

I know.
My head hurts.
Does your head hurt?


5 posted on 11/18/2011 6:23:59 PM PST by nkycincinnatikid
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To: ClearCase_guy

Yup—Defense cuts suits the Left just fine. After all, most military and defense employees lean to the Right. Why not play havoc with that constituency? This has been going on for decades now. Of course, most Liberals believe that we need no defense at all.


6 posted on 11/18/2011 6:26:12 PM PST by rbg81
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To: ColdOne

Neither side wants a resolution. They don’t want to be held accountable by affected special interests. So, here comes the automatic cuts.


7 posted on 11/18/2011 6:30:10 PM PST by StolarStorm
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To: ColdOne
This is the PR hype so that they raise taxes and other RHINO/LIB sh*t tactics. Guess the Conservatives are going to get sold out, again.
8 posted on 11/18/2011 6:30:18 PM PST by IllumiNaughtyByNature ($1.84 - The price of a gallon of gas on Jan. 20th, 2009.)
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To: ColdOne

I doubt that many thought anything meaningful was ever going to come from the Dopey Dozen.


9 posted on 11/18/2011 6:33:37 PM PST by Gator113 (~Just livin' life, my way~.. Newt/West 2012."got a lot swirling around in my head.”)
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To: ColdOne

The Super Committee seems to be about as effective as the regular Congress. I’m shocked! /s


10 posted on 11/18/2011 6:34:16 PM PST by TigersEye (Life is about choices. Your choices. Make good ones.)
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To: ColdOne
Economists are warning of dire consequences . . .

Economists, eh? So where can I find these economists? These are the same lies we heard the last time around. Republicans fell for those BS lies, costing us another $2.5 trillion in debt. It will also yield us a substantial tax increase in January. (Yes, that's right, our Republican leadership agreed to a huge tax increase with this supercommittee deal). I see now why they call the GOP 'the stupid party'.

11 posted on 11/18/2011 6:39:27 PM PST by Hoodat (Because they do not change, Therefore they do not fear God. -Psalm 55:19-)
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To: ColdOne
The Politburo will never be seen to "fail"...!
12 posted on 11/18/2011 6:39:52 PM PST by Gritty (Compromise that is not a solution is a waste of time. We either save this country or we do not-Rubio)
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To: nkycincinnatikid

My head is about to explode !!!


13 posted on 11/18/2011 6:41:46 PM PST by ColdSteelTalon (Light is fading to shadow, and casting its shroud over all we have known...)
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To: ColdOne
B T T T ! ! !

If you haven't yet contributed, please click here to support FreeRepublic,
and move the bar to GREEN!!!

14 posted on 11/18/2011 6:41:49 PM PST by vox_freedom (America is being tested as never before in its history. May God help us.)
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To: ColdOne
If these economists are so accurate at "warning" us about things, why didn't we hear from them when obama was busy "tarping" and "bailing"?

This is mainstream media garbage, and I - for one - am refusing to play their game any longer.
15 posted on 11/18/2011 6:41:58 PM PST by FrankR (What you resist...PERSISTS!)
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To: ClearCase_guy; StolarStorm
If When no agreement is reached, there will be more to it than automatic defense cuts. The Bush tax cuts will automatically expire as well.
16 posted on 11/18/2011 6:43:09 PM PST by Hoodat (Because they do not change, Therefore they do not fear God. -Psalm 55:19-)
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To: ColdOne
B T T T ! ! !

If you haven't yet contributed, please click here to support FreeRepublic,
and move the bar to GREEN!!!

17 posted on 11/18/2011 6:43:20 PM PST by vox_freedom (America is being tested as never before in its history. May God help us.)
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To: ColdOne

Someone wants to downgrade us? Fine. They’re just along for the ride too.


18 posted on 11/18/2011 6:49:33 PM PST by frposty (I'm a simpleton)
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To: ColdOne

“Sequester” & Cut socialist collectives, foreign and domestic. Our taxes go down dramatically, the debt is eliminated in 10 years and UNfunded socialist mandates go away. Make it happen, Super Commies.


19 posted on 11/18/2011 6:56:44 PM PST by PGalt
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To: ColdOne

It will all be blamed on the “partisan” Republicans who want to coddle the rich 1% at the expense of Social Security and Medicare. Democrats will ride that horse all the way to November 2012.


20 posted on 11/18/2011 7:04:41 PM PST by randita (I'm not a percentage. I'm a free person.)
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To: ColdOne

For revenue they should offer repatriation of offshore dollars at 10% tax year 1, 11% tax year 2, .... up to 20% tax in year 10. After that back to where it is now. That’s how you make revenue from a tax cut while helping the economy


21 posted on 11/18/2011 7:08:29 PM PST by Mike Darancette (999er for Cain.)
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To: ColdOne
It was (and continues to be) my belief that the super committee wouldn't accomplish anything and the automatic cuts would (will) quietly be rescinded.

Same stuff, different day, higher debt limit

22 posted on 11/18/2011 7:12:02 PM PST by RagingBull (Talent does what it can; genius does what it must)
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To: frposty

“Someone wants to downgrade us? Fine. They’re just along for the ride too.”

This is just a crock. If the Super Committee fails to produce the cuts, there are automatic cuts that are triggered, so where is the beef to the economists? The cuts still take place, the only difference is where those cuts will be made. But a cut is a cut is a cut. So why would the economists threaten downgrades if cuts are being made, one way or the other?

So if Moody’s, S&Poor’s, etc. downgrade, they are doing it for reasons other than a lack of cuts. They are doing it for political reasons, or as a power trip, or to get revenge for the gov’t going after them for their prior lousy forecasts, or just because they want headlines. Whatever the true reason, it isn’t because of the cuts, or any lack thereof.


23 posted on 11/18/2011 8:44:52 PM PST by flaglady47 (When the gov't fears the people, liberty; When the people fear the gov't, tyranny.)
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To: All; flaglady47
The initial downgrade was blamed on especially strong partisan gridlock.

If the super committee comes up with nothing, that deal will have failed and underscore the same process problems.

In that light, another downgrade makes as much sense as the earlier one.

24 posted on 11/18/2011 10:04:41 PM PST by newzjunkey (Republicans will find a way to reelect Obama and Speaker Pelosi.)
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To: ColdOne

Boehner will get involved and will raise taxes now in exchange for fake spending cuts 10 years from now.


25 posted on 11/19/2011 9:05:55 AM PST by BinaryBoy (Stuck with a local RINO? Regardless of who you vote for, donate $$$ to a different district.)
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To: flaglady47

“This is just a crock”

Your entire post reinforces the notion that, yes, we’re just along for the ride now.


26 posted on 11/19/2011 10:15:40 AM PST by frposty (I'm a simpleton)
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