NOTE: The numbers may change based on the final, final deal. But the overall point of this post still stands regardless.
The new deal discussed now in Congress, will raise the debt ceiling by $2.8 trillion through the next eighteen months ($155.55 billion a month after some budget votes going forward, I guess). In exchange, the country will get $2.8 trillion in “cuts” through the next ten years ($23.33 billion per month).
A) The cuts are against what the CBO projected earlier this year will be spent through the next decade. For example: If the CBO projected that through the next ten years we will spend $5 trillion on Medicare, yet now according to the deal we will spend say only $4.5 trillion, it is called a “cut” of $500 billion. A farce!
B) The current legislation does nothing to force a future Congress to actually stick to these cuts. In fact, months after HCR called for Doctors to get a 21% cut in pay from Medicare starting already in 2010 (as part of the HCR “savings”), the then-Democrat Congress voted months later to push it off until after 2012.
C) The cost of all the Bush tax cuts is less than $14 billion a month. Leaving these cuts in place in addition to the $23.33 billion in “cuts” still sets President Obama way ahead as a gainer of this new deal with an ability to get us into $155.55 billion in new debt every month.
D) The $2.8 ceiling raise is larger than any other President ever got in one vote (even after adjusting for inflation)! This comes on the heels of Obama getting already $3 trillion in the first two years in office; a thing which – again – no President got in a mere two years. Yeah, I wonder why Obama is treated differently…
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