I agree.
America is hosed. Too bad most politicians are bad with numbers (except spending)
Dems never mention that the House spends the money. 
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BTW, the Stupid Party should have these charts plastered all over the place.
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Posted on 07/27/2011 6:23:40 PM PDT by Hojczyk
A modest improvement, but let’s face it: At this point, no one’s supporting the bill on its merits. If you’re backing it, it’s because it’s the best we can do to avert a default right now and because, if it passes the Senate somehow, it would force The One to choke on his quasi-threat to veto any short-term deal at the last minute. There’s some fun in that, I suppose.
The new bill does, at least, keep his promise to produce savings in an amount greater than or equal to the amount of the debt-ceiling increase, which will be $900 billion if this is enacted. It’s hard to get excited about the difference between $1 billion in savings next year, which the old bill provided, and $22 billion, which the new one ensures, when we’re running multitrillion dollar deficits. But Yuval Levin makes a fair point. The lower we can get CBO’s baseline now, the deeper future Congresses will have to cut to sell their proposals:
These are still very small numbers in the scheme of federal spending, but the greater front-loading actually matters a lot. One reason is that the 2012 and 2013 budgets are the only ones that will actually be under the control of this congress. But even more important is the greater reduction of the baseline itself since, as we’ve witnessed in the past 24 hours, the CBO baseline is the measure of all future cuts—it sets the bar. This debt limit fight has set a precedent that from now on increases in the debt ceiling will need to be accompanied by equivalent cuts in spending, and those cuts will be measured by the CBO baseline, so cutting it by this much in the first two years will really shape the next round of the budget wars, which will come very soon. Front-loaded cuts have a kind of ratchet effect. And the larger cuts to the baseline in the following years (the revised bill’s cuts are larger every year than the original bill’s cuts) matter for the same reason—even if they don’t fully materialize (since one congress can’t bind another), they define the measure of future spending in every round of budget debates, which means that they make all future cuts larger in real terms.
Reid’s bill would produce $30 billion in savings this year, but guess where that comes from. Right: The phantom “savings” from winding down in Iraq and Afghanistan. Which, contra Levin, reminds us that it’s not that hard to beat those CBO baselines with a creative gimmick or two.
As of early evening, another member of the Cut, Cap, and Balance coalition has peeled off to join Allen West in supporting Boehner’s bill. And Darrell Issa, on a conference call with bloggers, thinks they have the votes — sort of. Exit quotation: “I don’t think all the people whose votes we have yet know it.”
Since this is the only year that is binding, that’s a 1.6% reduction of this year deficit of 1.4 trillion dollars.
EPIC FAIL!
OK Folks...
ONE MORE TIME...
This has NOTHING to do with cuts, it has EVERYTHING to do with pushing the next Debt Ceiling debate past Obama Nov2012 Reelection date.
THAT IS ALL DEMOCRATS CARE ABOUT. PERIOD.
“$22 Billion? What’s that, 3 weeks of borrowing?”
If the US brings in $200 Bn per month, that’s $6.7 Bn per day. 0bama and the Democrats spend $4 Bn per day.
I don’t know what the actual figure are.
I’m thinking that if we have to borrow 40 cents of every dollar and pay 10 cents of every dollar in interest, we might be looking at 10 days or less worth of borrowing. I could be wrong.
We have an 8 year window to save the country, and we're in year 1.
8 years are 4 election cycles. 2010 we made tremendous gains by winning the House, big gains in the Senate, stopping Obama and the Dems, and, most importantly, framing the debate to "cuts" rather than new programs.
2012 we win the Presidency, the Senate and solidify the House. 2014 we strengthen the Senate and the House. By now, every Senator would have faced the voters at least once.
2016 we get back at the Congress Critters who snuck by in 2010, but now have either a pro-growth or pro-socialist voting record.
Keep in mind that republicans will take over more governorships and state legislatures, and if they stay true to their principles, we could kill off the liberal monster for a long, long time.
With this in mind, I think we get what we can now, and really put the pressure on the quasi-socialists in 2012 to defend themselves. By then, the new slogan will be... VOTE REPUBLICAN IN 2012, BECAUSE 8 YEARS OF CARTER-OBAMA IS QUITE ENOUGH!
thieves yes, fools no. We are the fools.
Excellent point! I'd say including that I'd have to change my 45/1 ration to a NEGATIVE number!
And, it appears, the only thing the GOP cares about is pulling the next Debt Ceiling debate ahead of the 2012 election cycle.
If it's all about the debate, and not about the spending, the federal government is risking itself.
This is absurd. We needed an immediate cut of $750 billion in January, and another $750 billion by September 30.
What’s happening now is meaningless.
I have no desire to hand these thieves and liars over 1 trillion more plus interest. We get a balanced budget NOW if no deal is reached. That alone should be enough to scare the RATS into accepting the CCB deal the House already sent over.
The best solution is to leave the debt ceiling as it is.
If either of these plans are passed in 10 years all growth in the economy will be directed towards interest on the debt.
Assuming there is growth.
I can’t stand golfing crybaby’s who can’t, er, WON’T count. These numbers are pennies...
I think that makes good sense..
I’m afraid so. The numbers right now are lower than pitiful...but there’s no new taxes, some savings between now and the end of the year and a chance to bring this debate again next year. If we can hold on long enough, it will be taken up in earnest in 2013. Of course, if the Supremes take up and shoot down 0bamacare, there could be a substantial increase in savings. We are in for a long, hot 16-18 months. Prepare for the worst, hope for the best.
What makes you think that?
It’s not any kind of a savings!
This so-called “savings” is merely a reduction in increases, not a true savings of any sort!
“it’s the best we can do to avert a default right now”
I think we can do nothing and still “avert default”. If we do nothing our government won’t be able to borrow more money and we’ll have cuts so we can live within our means.
Let’s give that a try. Let’s do nothing for now and let our analysts and politicians think seriously about where to make cuts. We’re supposed to believe that the cuts necessary if we do nothing would cause serious harm. Let’s do nothing for awhile and see what happens. Let’s let our Moody’s rating get cut and see what happens.
I’m more afraid of the proposed legislation than doing nothing because don’t trust the proposed legislation nor the politicians who will implement it.
billions? Really...
minimum needed for a down payment to avoid the downgrade is 4 trillion?
Is he doing this as a backhanded way to force 0bama to ‘own the debt and economy?’
I am almost thinking he is just going through the motions at this point. He knows what is at stake...at one point he put his whole heart into getting something done. And was perpetually told no...not without handing over more ‘revenues.’
Has he given up? Has he decided to go ...Galt?
The bill he is presenting doesn’t make any sense...
Says you. We're going to suffer a currency collapse long before that. Perhaps even before the next election. It's really that bad now. We've passed the point where repaying our massive debt is even mathematically possible. Our debt-to-GDP ratio will soon be 100%. But that's peanuts compared to the $120 trillion in unfunded liabilities. There is simply no way a $15 trillion economy can make good on that.
Sorry FRiend, but it's game over....
Cannot believe how retarded this is. We have the opportunity to use the $1T debt ceiling raise as leverage to make large cuts up front, but we come up with this paltry amount. In 6 months, if the current rate of debt is kept, we will have another debt ceiling fight. The America public is going to scream a big ‘Win The Future’ as to why this is happening again so soon.
The Pub leadership thinks it can ‘rachet’ and keep the public on their side. The missed opportunity will look pretty big as the public blows the whole thing off in 6 months as business as usual. The GOP leaders are gambling with ‘12 election politics that we can strong arm the Dems down the road and hit electoral gold. I think they’re overleveraging their bet.
I agree.
America is hosed. Too bad most politicians are bad with numbers (except spending)
Dems never mention that the House spends the money.
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BTW, the Stupid Party should have these charts plastered all over the place.
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