Within the next two years the federal government will no longer be able to beg, borrow or steal the money to fund its operations at current levels. The fed won't be able to close the gap by buying more government debt at absurdly low rates because inflation will be starting to run out of control. Government borrowing costs will rise sharply and we wont’ be able to borrow as much as the politicians want to spend at any price. Both the government and the economy will be in an unholy mess.
Obama will argue that the mess is all a result of Republican budget cutting. He's already started rolling that argument out. Republicans need to lay the foundation for a strong counter attack. Our political future depends on which party gets blamed for the fiscal crisis of 2012.
Levin's whole monologue attached far too much importance to trivial budget cutting and totally ignored the larger strategic picture. Any cuts the GOP is prepared to consider now are going to be grossly inadequate. In the scheme of things, it doesn't really matter much whether we spend $3.6 T or $3.7 T. Whatever happens in DC this year, we're in for a bumpy ride and the important thing is how we come out at the end. It would be nice to hear a bit more recognition of that reality from the “Great One.”
I’m all for the shutdown. Of course it isn’t a total shutdown, we will just be forced to live off the current incoming proceeds. I think that is 75% of the current spend rate.
I highly doubt that there is any plan on what programs will be supported and what will not. On March 3rd the government will suddenly panic and try to figure it out to no avail. Will it be madness or is there an established process?