How the U.S. debt ceiling and budget cuts will play out

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#1 Tue, Jun 21, 2011 - 10:36am
Irish-Mic
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How the U.S. debt ceiling and budget cuts will play out

Latest word from a buddy of mine who works for a Congressman is this:
Earliest you can cut the budget is FY2012, which is the end of Sep. Total discretionary budget is approx $1.4T, but it can't be cut sooner than Sep. and can't cut $2T in one year ($1.4 is theoretical max). So, what will happen is we'll raise the debt limit $2T and then spread the $2T in cuts over several years. The real sticking point right now is over HOW MANY years. That said, by definition, there will be cuts that will have to occur after the 2012 election.

Even the optimistic of holdouts should finally start to realize we aren't serious about getting our financial house in order.

Edited by: Irish-Mic on Nov 8, 2014 - 5:07am
Tue, Jun 21, 2011 - 10:59am
davefess
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terrific insight

Debt ceiling has to be raised or Obamie won't be re-elected. I do believe (to much dismay) that Obama will be re-elected, pushing us off the cliff quicker. So be it. Sooner we crash, the sooner we can rebuild.

"it's game over man, game over!"
Tue, Jun 21, 2011 - 11:11am
Seacap81
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The House is a body of fiscal

The House is a body of fiscal sanity.

The Senate is a wild card, anybody's guess.

The White House is a body of fiscal insanity.

Nothing changes until at least Jan. 20, 2013.

Question becomes, "do we blow up before then?"

Fri, Jul 8, 2011 - 9:31am
Violent Rhetoric
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Congress will spend until

Congress will spend until they can't.

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