This is all still subject to change, here is what it seems to look like at the moment... - $900 billion in the first stage of deficit reduction. - $1.5 trillion in second stage of deficit reduction defined by a bipartisan joint committee - If the committee can't come up with anything, defaults kick in as follows: $1.2 trillion in cuts, half from Defense cuts, the other half non-Defense cuts excluding Social Security and Medicaid - Debt ceiling goes up in three steps, $400 billion right away; another $500 billion late 2011, subject to a "vote of disapproval", and a third $1.5T increase in 2012, also subject to "vote of disapproval" - Apparently Congress will also have the opportunity to vote on a balanced budget ammendment (haven't they always had that right...?) ET only allows 30 minute edits, so this is only as accurate as it is fresh.
My personal feeling is that (a) the joint committee is going to come up with squat, and (b) these are not serious cuts, $300B a year is a drop in the bucket, and it won't really change anything.
This is so far from what the TP claimed it wanted, it will be interesting to see how voters in the few districts that elected TPers respond. My gut says yesterday's TPers are tomorrow's incumbents, and obladi oblada...
USA needs to cut $16 Trillion over 10 years to balance the budget. Is this true? That comes to $1.6 Trillion every year. How many jobs will be lost in USA? $4 trillion over 10 years is a joke. The best way to save jobs is to reduced the salaries of high paid employees by 50%. Salaries of government people such as federal reserve and bankers should be reduced by 90%. USA cannot spend more money unless debts have been repaid or replaced by real money. This means every year there will be $1.6 Trillion less spending from USA. Reduce pay, reduce benefits, and reduce retirement plans and job loss means less income for USA people. Less income means less sales and less profits for private and public sector companies. So there will be job-loss in private sectors and public sectors. How will companies pay taxes when there is less profits or no profits? How will people pay taxes when there is reduction is salaries/wages and job-loss? Basically Tax collection for USA government will fall to its lowest level. Thanks to who? ------------------------------ House Republican budget negotiators have abandoned plans to pursue a massive $4 trillion, 10-year deficit reduction package in the face of stiff Republican opposition to any plan that would increase taxes as part of the deal. House Speaker John Boehner informed President Barack Obama on Saturday that a smaller agreement of about $2 trillion was more realistic. http://www.msnbc.msn.com/id/43695394/ns/politics-white_house/
The numbers get fuzzy, but that is at least in the right ballpark. I agree, these targets are hopeless at best, outright deceitful at worst. I doubt we see any meaningful cuts at all, which would mean having another debt ceiling vote, with no spending reduction, right before the next election. Should be fun. Meantime, the voters keep fiddling...
Spending will be cut in next 10 years, say 2.4T, then why do they need to raise the debt ceiling? If they cut spending, should not the debt be reduced? why raise the debt ceiling? Is this deal good or bad for the market? One thing, finally they reached the deal, the uncertainty is gone. That's good for the market. However, Obama will have the least budget in half century. If the government spending is reduced, this is not good for the market.
It's Congress-math. Baseline increase is (I believe) 7% this year. They're cutting roughly 2% from that. So, roughly, nets out to a 5% increase in spending.
In 2007, when the economy was still doing fine, The Federal Govt took in $2,568 TRILLION in revenue and we spent $2,629 trillion for a deficit of $161 Trillion. Now a mere 4 years later, we are spending $3.7 TRILLION while taking in only $2.1 trillion. For a deficit of $1.6 Trillion. OR 10 times the deficit of FOUR YEARS AGO. Who knew that Bush would be "the good old days?" Revenue is down because the economy is down. spending is up because we have a Socialist, Giant Government believing president in the White House and a Democratic Congress that loves to spend other peoples money. Now the face of Congress is changing. If the government would get out of the way of business and SHOW business that the government wants them to do well. Mainly by reducing regulations on business and taxes on business since the taxes in the USA between Federal and States are the highest of any nation in the world. Then business could and would begin to expand. And TAXES on the rich and everyone else were exactly the same in 2007 as they were in 2010. Now since obama and the Democrats extended and increased to tax cuts, taxes are lower NOW than they were in Bush's time. Individual taxes, not business taxes. So if we could get spending back to where it was in 2007 and get revenue just $200 billion above where it was in 2007, we would HAVE a balanced budget.
120 Million Americans & 1.5 Billion People Want to Impeach Obama My understanding says that atleast 120 million Americans want to impeach Obama immediately. After reading many serious financial reports and having discussions with thousands of Americans I have come to the conclusion of Obama's impeachment. Atleast 1.5 Billion world people also want to impeach Obama because nobody likes Obama and his administration. There are worldwide serious financial problems and world society problems because of that idiot Obama and idiot Obama administration and Obama supporters. Everybody knows what is going on in the world and USA. Impeach also means remove or change because everybody is not highly educated they do not know the meaning of impeachment. Ordinary people's opinions and decisions is equally important as president's opinions and decisions I have also had discussions with thousands of world people over the past many months and I know the serious world situation. 10 Serious Impeachable Offenses for Obama: 1) Libya war is an impeachable offense. Gaddafi has threatened to blow up Libya with missiles if rebels take over Libya. 2) Obama's birth certificate is an impeachable offense. 3) $9 Trillion (whatever) bailouts given by Obama to bankrupt companies and countries without the confirmed permission of tax-payers is an impeachable offense. 4) Obama's debt ceiling issue decision without congress would be an impeachable act. 5) 412 limousines and excess use of Air force One under Obama is an impeachable offense. 6) Obama spending time with his friend in Hawaii who was arrested for prostitution is an impeachable offense. 7) 200 million Americans involved with or watching pornography is an impeachable offense. 8) Americans take about 80% of psycotic drugs in the world and Americans take 80 percent of all prescription painkillers taken in the world. Are Americans weak? hypochondriacs? This is also an impeachable offense because Americans are suffering. 9) and 10) God is angry with Obama. This the biggest impeachable offense. 45 million Americans are on food stamps and 45% to 50% Americans do not pay taxes because there income is below taxation limit. Some 6 million jobs have been lost since Obama is president. Why don't Americans take serious actions when Obama has many impeachable offenses? Are Americans too weak to impeach a president who is just an ordinary person? Obama is not God. USA and world countries will be unrecognizable by year 2013. The reason I have written year 2013 is that Obama and his administration will do maximum damage to world economy and world society in next 18 months (till November 2012). So the next USA President will need atleast 1 year to repair the maximum damage and there high possibility the maximum damage will never be repaired. An American has written this to me: You wouldn't know that for about the last 20 years we've been becoming increasingly ignorant, uneducated, purposeless, useless, and hopeless. The pressures, disappointments, unfairness and exhaustion of day-to-day life in this country has left us weak, disoriented, and uncaring about anything but the enjoyment of temporary pleasures. We don't care about laws, or legality. We don't care about decency or civility. We don't believe in governments, the corporations that own them, or in ourselves. The United States I grew up in is already unrecognizable.... What do we care if some autocrat posing as a "social savior" tramples over our bedrock Constitution if he'll give us welfare, food stamps, rent subsidies, utility credits, and all the other trappings of the Welfare State? We've sold out our Constitutional right to be free, independent individuals in a free, loose confederation of states in a United States, and we did it in return for government-subsidized existence. That's why we won't impeach Obama for breaking the law, and that's why we won't even try. We have decayed, rotted, and become perverted and wasted, and now we are falling down as a nation... and nobody in a position of power even cares.... The last paragraph explains it all. This American seems to be desperate so I have posted his message. Another American has written to me: Our main issue with Obama is this: would you work hard and invest your money, so that a politician in Washington DC gets to look good, by REDISTRIBUTING the fruits of your labor to others? Obama wants take from those who produce and give to those who don't. He trumpets how this makes him a moral champion, by pointing a gun at those who use their brains and saying: "Produce jobs and wealth for me so that I can have power!!" What if they don't? What if decent people think that they are not here to be the beasts of burden for scum like Obama? Most Americans are kind hearted and will help IF ASKED. They will not help if a thug from Chicago points guns at them.