So the big news is confirmation that our county can continue to borrow more money to pay our interest charges. The debt ceiling was successfully increased, Obama has signed it into motion. Now, after it’s confirmed, people can start to analyze what will actually happen. First, there are no tax increases. An issue that republicans insisted could not happen, and an issue democrats insisted needed to happen. There are immediate cuts in discretionary spending allowances to the tune of 917 billion from 2012 to 2021, and no immediate cuts to social programs such as social security or medicare. Then a committee will be setup, half republicans half democrats with the task of finding more cuts by the deadline of November 23. Those cuts must be voted on by December 23rd.
If the committee process fails, then cuts of $1.2 trillion would automatically come into force – divided evenly between military and non-military spending, but not touching Medicare and Social Security. Republicans have vowed to resist steep defense cuts in the special committee. The White House hopes the threat of the automatic cuts if the committee fails – which would amount to $600bn – would serve as leverage to press Republicans on the panel.
Credit rating agencys are keeping the US at a AAA rating for now, but the 3 big agencies are all evaluating the economy given the new debt deal and will present their findings in the coming weeks with a possible downgrade to our rating.
Did we get what you wanted? Did your party negotiate for you like you hoped?
Discus and more on the Wednesday Open Line
No neither party would take any action to speak of to change the mess they have gotten us in. Some comentators are saying that that It was the Tea Party that stuck to there guns and followed throuhj on what the voters asked them to do. Certainly both REP and Demo are not paying atention to voters. They only understand special intrest groups. LOOKS LIKE WE REQUIRE MORE CHANGE IN WASHINGTON. We perhaps would be beter off with candidates not tied to either of the parties Democrat or Republican.
http://www.youtube.com/watch?v=J7XA2UUpXRk&feature=player_embedded This is where our tax dollars go.