Debt Deal In The Works – It’s A Can Kicking Event


The can has been kicked out of D.C. until November, but it’s the best deal to be had for now supposedly.

President Obama said a debt deal is in the works. For starters, the President will be able to raise the debt ceiling in three steps and two can be challenged. The increases can be blocked by a two-thirds vote of the House and Senate, an unlikely scenario.

There will be a trillion dollars in immediate cuts to the inflated budget. It will be a trillion over ten years however (are they for real?).  Reuters is reporting that  $2.4 trillion over ten years is envisioned (most of that is in defense and presumes the end of all wars). I envision the big fat budget will be slightly less fat and I do mean slightly. There will be long term cuts down the road (where the can will be waiting).

A bipartisan 12 member commission will be formed to consider deeper cuts and possibly tax increases for the richest among us. I sure hope they get those evil corporate jet owners I keep hearing about. We will be happy when the rich pay 100% of what they make.

Anyway, the balanced budget amendment will be voted “down,” I mean “on” (not holding my breath for that one). Modest cuts to Medicare will be considered (they’ll go look for waste and fraud again). There might be extensive defense cuts (that sounds bad). It’s all so vague.

The commission will return to President Obama with their recommendations by November and they’ll have the can with them.

President Obama said he is willing to make cuts that would create the lowest level of domestic spending since Dwight D. Eisenhower was president. That sounds implausible and the statement needs to be researched. I guess we’ll know more when the plan is shared with the rest of us who have to pay the bills.

Moodys said we needed to cut $4 trillion to keep our AAA rating – maybe we should have done just that.

Click here for the framework released by John Boehner