Pay no attention to the spin of the title, this doesn’t hold Obama accountable for ANYTHING. As a matter of fact, it ensures Obama will be re-elected.
S&P and Moody’s stated 3 days ago, that unless real cuts were made, averaging at least $1.5 Trillion PER YEAR, a downgrade was imminent. This doesn’t even come close…..AND he made sure Obama was untouchable for 2012. Can’t wait to see how we’re going to NOT default when interest on our debt goes from averaging 2.5% to 14%.
Apparently, ignoring this mathematics, John Boehner capitulated to the political football passing….and even worse, he fumbled the ball. There were numerous times he could have at least gained the political upper hand to get something better than this. Why? SPENDING BILLS MUST ORIGINATE IN THE HOUSE and the House is where the most fiscal conservatives reside. The option was always there to just do NOTHING.
Although failing to raise the debt ceiling would have forced very hard choices it was a far better scenario than what is going to happen when interest rates on the now $16.5 Trillion in debt goes up by a factor of 5 or more. Up until now this has never been a matter of defaulting because we take in enough revenues to cover all the items on the ‘exempt’ list above. Grandma didn’t have to miss her Social Security check and the military would have been paid. NOW we’re going to be staring down the barrel of the default gun – as it WILL come when the downgrade comes. We do not take in enough revenues to cover the interest on our debt if that interest is doubled – or WORSE.
Meanwhile, the blame for this outcome will be put on the Tea Party for failing to reach a better ‘compromise.’ While this is certainly NOT deserved, it is what it is, and why I say that this may very well destroy the Tea Party right along with the Republicans.
In one fell-swoop Boehner destroyed the Republican Party, ensured that Obama will be reelected and destroyed the country. That’s some amazing sh*t right there.
If this is indeed what the ‘deal’is, there’s nothing really left to do except buy food, guns and ammo. We’re all going to need it.
UPDATE: It now appears that defense is NOT ‘exempt’ – matter of fact, it appears that defense is targeted specifically. The latest information is that 1/2 of the first $900 billion in cuts will come from defense and then 50% of the remaining cuts will come from defnse if there is no agreement on the second round of $1.5 trillion in cuts. Mind you, all these are still over a 10-year period and will do nothing to avoid a downgrade or reduce the overall debt. However, it appears the military, which is only 24% of our spending, will be the area that bears the brunt of the cuts. While I agree military spending must be cut, the idea of leaving the 62% that is Social Security, Medicare, Medicaid and welfare untouched makes no sense to me.
The ‘deal’ appears to get worse and worse….