[socialism_stinX]

I don't think the explanation that "the GOP forced us to cut SS and Medicare" would be accepted and believed by the voters. It looks like the plan is to make relatively modest reductions in the growth rate of spending on SS and Medicare, and the modest political cost has to be shared by both parties. Considering that the democrats control the White House and the Senate, the voters will never believe that the GOP forced them into anything.

At a high level, it looks like Obama and Boehner are trying to get more revenue through economic growth, as the Fed continues to print money and mortgage rates fall below 4%. Actually, with our ongoing oil production boom and robust automotive replacement cycle happening right now, that growth plan just might work. That growth plan could work, if we can negotiate an end to the Iranian nuclear weapons program, or make a quick surgical military strike on Iran that only drives up oil prices for a month or two. We could actually have a fairly strong economy next year in that scenario.

[kabar]

I don't think the explanation that "the GOP forced us to cut SS and Medicare" would be accepted and believed by the voters. It looks like the plan is to make relatively modest reductions in the growth rate of spending on SS and Medicare, and the modest political cost has to be shared by both parties. Considering that the democrats control the White House and the Senate, the voters will never believe that the GOP forced them into anything.

Sorry, but the low information voters that reelected a failed President will buy that argument hook, line, and sinker. We see it playing out now. Obama has positioned himself as the defender of middle class tax cuts. He wants to tax the wealthy more, which has close to two-thirds support by the public. And the MSM and Obama have portrayed the GOP as demanding entitlement cuts in return for higher taxes on the wealthy and the extension of tax cuts for the middle class.

How many House Dems will support such cuts. Will the GOP put together a coaltion of Reps and Dems to pass it? Yes. And the Senate will ensure that those Dems coming up for reelection will be protdcted and allowed to vote NO. Obama will sign it and make it known that he was forced into signing the bill in order to prevent us from going over the fiscal cliff. He had to be the adult and compromise.

At a high level, it looks like Obama and Boehner are trying to get more revenue through economic growth, as the Fed continues to print money and mortgage rates fall below 4%. Actually, with our ongoing oil production boom and robust automotive replacement cycle happening right now, that growth plan just might work. That growth plan could work, if we can negotiate an end to the Iranian nuclear weapons program, or make a quick surgical military strike on Iran that only drives up oil prices for a month or two. We could actually have a fairly strong economy next year in that scenario.

You are living in a fantasy world. None of these solve our deficit and debt problems. There will be no real spending cuts. The national debt will continue to rise and when interest rates return to historical norms, our debt servicing costs will rise dramatically approaching a trillion dollars a year within a decade. And by 2030 one in five in this country will be 65 or older, twice what it is now.

Oh, and let's not forget the rising costs of Obamacare along with higher taxes. We will start feeling the pain of this program in 2013 and 2014. Does anyone really think that Medicare payments to doctors and hospitals will be reduced by 31% next year? Just as Medicare costs 9 times what the projections provided, Obamacare is another huge entitlement program that will bankrupt us.