Proof they are not serious/chicken feed

3 posts / 0 new
Last post
¤
¤'s picture
Offline
Joined: 06/14/2011
Hat Tips: 92321
Posts: 18245
Proof they are not serious/chicken feed
Tyler Durden's picture

Boehner Releases Revised Plan: To Cut $91.7 Billion Each Year For A Decade, Buys 4 Months Before Next Debt Ceiling Hike

Congressional Budget Office Debt Ceiling fixed Medicare

The epic revision in the just revised Boehner plan is to cut a grand total of ... $91.7 billion per year for 10 years (back-end loaded of course: 2012 will see just $22 billion in cuts - can't have any real cuts too early or else). The spin is that this is sufficient because the $917 billion in cuts is more than the proposed $900 billion debt ceiling hike, so all shall be well. Of course that is only part one of the two-part debt ceiling hike process. The next step is a $1.8 trillion cut to "protect programs like Medicare and Social Security from bankruptcy." The problem is that Boehner continues along the path of a two-step debt hike, a formulation that Obama will never agree to, since it effectively guarantees him no-reelection chance, as the last thing the people will want is the same bickering as we are experiencing every day again some time in 2012, when the current $900 billion in incremental debt capacity runs out. And actually, with the US debt already $300 billion below trendline and with the government's two pension funds already plundered by a like amount (which means they have a net IOU position), it means that the Boehner plan really buys only $600 billion of dry powder. At a burn rate of $150 billion a month, this means the first step of the Boehner plan buys precisely 4 months before the debt ceiling has to be raised again! Oh yes, this plan also guarantees at least a one notch downgrade to the US debt, with more notches coming up before the end of the year when this whole farce is repeated.

Edited by admin on 11/08/2014 - 06:05

__________________

An epic lack of foresight, accuracy and humility over 3 1/2 years ago. Once a pumper, always a pumper!
http://www.tfmetalsreport.com/comment/170246#comment-170246

ohiometalman
ohiometalman's picture
Offline
Joined: 06/14/2011
Hat Tips: 581
Posts: 76
Boehner is a tool, just like

Boehner is a tool, just like the rest of the established politicians.  The only reason the GOP has not caved is because there are too many new rookies sent up by the Tea party.  These guys in Washington will not get the picture until until the old blood is completely flushed out.  Question is, will it ever happen.

In the end, the credit card will be raised and all the burden will continue to be shifted onto the slaves of the USA!  God help us all!

Violent Rhetoric
Violent Rhetoric's picture
Offline
Joined: 06/16/2011
Hat Tips: 475
Posts: 219
yes this is all for show

We are running deficits of 1.5 trillion per year. Now I know the CBO says the future deficits will decrease  based on CBO projections. Ugh, yeah, right. Quick & dirty and ignoring the PV of money since they ignore it when they (Congress) talk about spending cuts take 1.5 trillion x 10 years = 15 trillion added to the debt over the next decade. Congress wants to cut 1 trillion or 4 trillion or whatever. Really!?! Is that it?!?  Even if they were real cuts (they're not) we are in a deeper hole than we are now. Houston... we have a problem.

So yes this is all for show and really won't save any dough.

__________________

Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty.

This is known as “bad luck.”
~ Robert Heinlein

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Topic locked
Syndicate contentComments for "Proof they are not serious/chicken feed"