Budget Deal Doesn’t Cut Spending

The Cato Institute ^ | Aug 1, 2011 | Chris Edwards

[goodnesswins]

House Speaker John Boehner’s bullet points on the deal say that it cuts discretionary spending by $917 billion over 10 years, as “certified by CBO.” These discretionary “cuts” appear to be the same as those in Boehner’s plan from last week. The chart shows CBO’s scoring of those spending cuts (see here and here).

[goodnesswins]

See the Chart at the link.....doesn't look good...

[ml/nj]

If it cut's spending, why do they have to raise the debt limit?

ML/NJ

[LowTaxesEqualsProsperity]

Of course it didn’t.

Primary every traitor that voted to bankrupt the nation further today.

[goodnesswins]

government math??? (Actually, it’s the “budget” system....wherein they give a 7% increase, then cut it by 2% and say they had a budget decline)....Don’t you wish YOU could do that???

[ml/nj]

cuts (no apostrophe!)

[ken21]

it’s a dog and pony show.

everyone in congress knew the routine.

[ken21]

it’s a dog and pony show.

everyone in congress knew the routine.

[Terry Mross]

Do you actually believe this country will survive until the next election? I hope it does but I’m not convinced.

[ml/nj]

I know what the answer is. It's a question I hope the unwashed will begin to ask.

ML/NJ

[rintense]

It’s a stealth bill to fund Obamacare.

[Jim Robinson]

Excerpted from the article:

House Speaker John Boehner’s bullet points on the deal say that it cuts discretionary spending by $917 billion over 10 years, as “certified by CBO.” These discretionary “cuts” appear to be the same as those in Boehner’s plan from last week. The chart shows CBO’s scoring of those spending cuts.

Wait a minute, those bars are rising! Spending isn’t being cut at all. The “cuts” in the deal are only cuts from the CBO “baseline,” which is a Washington construct of ever-rising spending. And even these “cuts” from the baseline include $156 billion of interest savings, which are imaginary because the underlying cuts are imaginary.

No program or agency terminations are identified in the deal. None of the vast armada of federal subsidies are targeted for elimination. Old folks will continue to gorge themselves on inflated benefits paid for by young families and future generations. None of Senator Tom Coburn’s or Senator Rand Paul’s specific cuts were included.

The federal government will still run a deficit of $1 trillion next year. This deal will “cut” the 2012 budget of $3.6 trillion by just $22 billion, or less than 1 percent.

More at the link: http://www.cato-at-liberty.org/budget-deal-doesnt-cut-spending/

[glennaro]

No matter what the cowards in Congress have done, are doing or will do, the economic realities of spending far more than is received and supporting the more than half of the population that contribute little or nothing in return will eventually hit and, unfortunately, hit hard. That is, reality is not denied.

The problem has not been solved ... it has been made worse by allowing it to continue.

[ken21]

why not?

as we know, the rinos are useless as an opposition party.

[EGPWS]

If it cut's spending, why do they have to raise the debt limit?

To pay for the spending cuts. (Base line budgeting dontchya' know)

[Iron Munro]

More inside the beltway Double-Speak.

Our rulers have decided that we make too much noise.

[reaganator]

August 1, 2011
We The Stupid
Ann Barnhardt
I stand here in abject stupefaction. The so-called “right” or “Tea Party” in this republic is being so thoroughly rolled and defeated that I am struggling to come up with an adequate violent submission metaphor that does not involve prison rape . . . and they honesty think that they’re “winning.” Really? You call this winning?

•- Obama gets over $2 Trillion to spend before the 2012 election
•- There are no real spending cuts
•- There is a massive tax increase effective January 1, 2013
Obama is going to be handed something in excess of $2 Trillion — and he has made it perfectly clear that he will spend every penny of it before the November 2012 election. That’s why he kept saying, “ . . . so we don’t have to do this again”, meaning raise the debt ceiling again. The debt ceiling would only need to be raised if all of the money had been spent. Therefore, he has stated very clearly that he will spend every penny of any debt ceiling increase. He is going to burn through $2 Trillion-plus in the next sixteen months. This was the Obama regime’s plan from day one. Geithner appeared before Congress in early May and told them this in no uncertain terms. This outcome has been a known quantity all along.

There are no spending cuts in this plan. It is all accounting fraud. Saying that you are not going to spend money in Afghanistan ten years from now is not spending cuts. Even if you accept the $1 Trillion in cuts over ten years propaganda, that is only $100 Billion per year, which is essentially meaningless relative to the size of the problem. Furthermore, even a miniscule uptick in interest rates, which given the massive debasement of our currency is now a mathematical certainty, will completely consume that $100 Billion per year. It’s all a joke.

Back to the $2 Trillion that Obama is being handed. I honestly think that most people in this country have no understanding of simple counting numbers. Do you not understand how much a trillion is? Where do you think this money is going to come from — who has two trillion dollars to loan us? China? Nope. Not even close. China’s entire GDP is only $6 Trillion. Do you honestly think that China is going to loan us one third of their total annual economic production? China was a huge creditor to us back when $100 Billion was considered a staggeringly large amount of money - which was four years ago. Now $100 Billion is literally a rounding error. Do you realize that there are only a handful of nations of this planet that even have a GDP in excess of $2 Trillion? If these countries loaned us every penny of their GDP, it wouldn’t even be $2 Trillion:

Canada ($1.57 T)
India ($1.54 T)
Russia ($1.46 T)

Are you starting to understand the scope of what we are talking about now? Obama is going to embezzle considerably more than the entire economic output of Canada, India or Russia to his cronies before the 2012 election — and that is just counting this round of spending. This doesn’t include the other $5 Trillion he has already burned through since 2009.

China is not going to lend us this money because they simply don’t have anything close to that much money to lend. This $2 Trillion is going to come from the Federal Reserve. Where is the Federal Reserve going to get $2 Trillion? They are going to print it out of thin air. We are in the midst of the largest currency debasement ever seen in human history. There is only one result that can come of currency debasement: hyperinflation and total economic and societal collapse.

Have you also forgotten the so-called “Bush tax cuts”? Yeah. Those rates are going to expire on January 1, 2013. Obama will presumably still be occupying the Oval Office at that time assuming that he is not forcibly removed or that the Republic is still intact at that time. Taxes will increase significantly at that point, and the Congressional Budget Office has scored everything put before them given the fact of the massive tax increases on 1/1/2013. Do you understand that? When these Republicans and even these so-called “Tea Party Freshmen” tell you that there are no tax hikes in their “plan,” they are consciously, willfully, knowingly lying to you through their teeth.

Finally, I do not understand how it can possibly be that conservative writers are still addressing Obama as if he is actually trying to help the economy, but his well-intentioned policies are failing.

Obama is the enemy. Obama is a Marxist-Communist usurper and puppet front for a cabal of Marxist-Communists who are actively trying to destroy the United States of America. Everything they have done, are doing, and will do has the single goal of collapsing and destroying the U.S. economy, military, constitutional government and culture. What part of “Marxist Revolution” do you not understand?

The Obama regime is not a failure. The Obama regime is not incompetent. The Obama regime has achieved more in two and a half years than anyone could have possibly foreseen. It has debased the currency by 50% of the GDP and guaranteed that our economy will collapse. It has looted the Treasury for more than the size of a top-ten economy and embezzled that wealth into the hands of their fellow Marxists in preparation for the final collapse of the United States. It has ground the economy of the United States to a screeching halt. It has destabilized the entire Muslim world and ensured that there will be a nuclear war centered around Israel within the decade.

The Obama regime has no interest whatsoever in “stimulus” or “getting folks back to work.” How can you not understand this? How can we possibly win this war if we refuse to come to terms with the fact that we are in fact fighting a war.

God save the United States of America, because the people are far too stupid to do it themselves.

[rintense]

So sick of all of them, including the GOP. As I said earlier, the thought of a third party (Tea Party) never crossed my mind. Now, it’s crossing my mind A LOT. Republicans will NEVER learn, and they will ALWAYS take their constituents for granted. It’s time to take our country back.

[CDB]

Good article! I posted it this morning to the Rush Limbaugh Show live thread (post#b 82)

[radioone]

Has anybody looked at the economic numbers lately??? The whole thing is tanking, and this fiasco of a bill isn’t going to help anything except for Obama’s re-election committee.

[stockpirate]

Boenher is nothing but a socialist prostitute, not to defame a prostitutes good name.