Viper1 said:
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The debt ceiling would be raised by $2.1 trillion with spending cuts of $1 trillion over the course of ten years. The cuts will be enacted immediately.
CUTS:
$350 billion from the defense with another $1.5 million to be cut via a bipartisan committee by November 23, 2011
If there is no agreement on the more cuts then a “trigger” (enforcement mechanism) will cause reductions of $1.2 trillion at the start of 2013. These cuts will be a 50/50 split between domestic and defense spending.
Note: Trigger will not be in place until 2013 to avoid any chance at going back into a recession.
This proposed deal, which most likely will get through the House and Senate, will keep the U.S. credit rating at AAA with $2.4 trillion in savings over the next decade and the debt ceiling raise through the end of 2012. The proposed deal needs be signed by President Obama by 11:59 PM Tuesday, August 2nd to avoid default.
Two stage process of the agreement:
Stage 1:
$917 billion in spending cuts along with a $900 billion increase in the debt ceiling.
Due to the urgency of the approaching August 2nd deadline the President has the authority to raise the debt ceiling by $400 billion, which would get us through September.
The other $500 billion of debt ceiling extension: Congress can vote but is subject to a Presidential veto.
Stage 2:
As previously mentioned a bi-partisan committee of Congress would vouch for more reductions totaling $1.5 trillion or more by November. The Committee will be made up of 12 members, six from each chamber with and equal number of Democrats and Republicans.
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Source:
http://www.oceanrenewable.com/2011/08/01/details-of-budget-agreement/
So we increse the debt by $2.1 trillion now so we can save $1 trillion over the next 10 years.
Oh, that makes sense.
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so how much are we actually "cutting". is it 1 trillion 1.2 trillion, 2.1 trillion.
and cuts enacted emediatly, does that mean we right now cut 1 trillion, or does it mean we start cutting now, but one trillion wont be cut until 10 years from now.
anyway this deal sucks, no real cuts only cuts on projected growth of spending. meaning we thought we are going to spend 10 trillion over the next ten year, but instead we are only going to spend 9 trillion. ta-da 1 trillion cut.
also tea party conservatives definitely got the short end of the stick, it seems like really cut military spending (which did needed to be adressed) but left out entitlements.
also i dont see how this deal can work, this congress cant bind the next and future ones with proposed spenfing. so you can say 1 trillion cut over ten years all you want, but if the next congress says no, then it doesnt matter.
again this deal sucks, it does nothing to address the problem, and no cuts to the budget. just great its business as usual. our once great country i going to the dumps. we can only hope the next election will bring in more tea party conservatives, so there can actually be real change. to bad the media is dishonest and in the tank for obama
