Supercommittee failure could trigger US credit downgrade, economists warn

guardian.uk.co ^ | 11/18/11 | Dominic Rushe

[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.

[ColdSteelTalon]

Baloney....

[rockrr]

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

[ClearCase_guy]

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

[nkycincinnatikid]

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

[rbg81]

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.

[StolarStorm]

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

[IllumiNaughtyByNature]

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.

[Gator113]

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

[TigersEye]

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

[Hoodat]

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'.

[Gritty]

The Politburo will never be seen to "fail"...!

[ColdSteelTalon]

My head is about to explode !!!

[vox_freedom]

B T T T ! ! !

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

[FrankR]

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.

[Hoodat]

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.

[vox_freedom]

B T T T ! ! !

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

[frposty]

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

[PGalt]

“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.

[randita]

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.