Are they cutting the debt or the deficit?

Discussion in 'Economics' started by empee, Jul 24, 2011.

  1. empee


    With all the coverage about the debt/deficit, and no numbers, are they actually going to cut the debt or deficit. For example, one number being bandied about is $3 trillion. So are they going to actually cut the total debt over say 10 years, or cut the rate of growth of the deficit by $3 trillion over ten years. If its the later, thats only $300 billion a year on a $1.5trillion deficit so it would be more of a start than a solution.

    Regardless, which are they talking about, the actual debt, or the rate of deficit?
  2. rate of defecit

    like you said, it basically does nothing even if we do the most extreme plans that have been proposed (6-7 trillion less)
  3. I'll play devil's advocate and say, in the long run, neither.
  4. piezoe


    They will cut the rate at which the deficit will grow, however they will bill it as a cut in the debt -- which it will be, but only in the sense that it will be a cut in the debt that would have been.
    They may be morons, but they are sly and devious morons, and I mean that in the best sense of those words. :D
    "Eisenhower was sly and devious, and I mean that in the best sense of those words." -- Richard Milhous Nixon

    When I read that remark of Nixon's I started laughing uncontrollably, and have not got it under control yet. Just thinking about that remark drives me to hysterics, as right Now.
  5. Any spending cuts or taxes will be back loaded into the last 5 years of the 10 years. That way, in 5 years, they can say: we are still in a recession or those will hurt the economy and they won't be implemented. The only issue is if the ratings agencies keep play along...
  6. zdreg


    ' The only issue is if the ratings agencies keep play along..."

    the only issue is whether holders of $US go along.
  7. They aren't talking about much of anything of substance, unfortunately.