Phony Deadline, Bogus Debt Limit Deal
By Greg Hunter’s USAWatchdog.com
Today, the President signed into law a $2.4 trillion debt ceiling increase contained in a so-called deficit reduction bill. This was done under the threat of defaulting on the debt of America, if a deal was not reached by August 2nd. The deadline was completely bogus because the government had ample funds coming in every month to service Treasury debt. Other things would have not been paid, but there would have been no default on sovereign debt, and that is a fact. Let me tell you what the markets think about the debt reduction part of the bill. The Dow was off by more than 265 points, or a little more than 2%. Gold, on the other hand, was up an eye popping $40 to reach a new all-time nominal high around $1,660 per oz.
The front page photo on USA Today was of Representative Gabrielle Giffords, who was shot in the head by a lunatic at the first of the year. She cast her first vote since the tragedy in the House version of the deficit reduction bill. I am truly happy Ms. Giffords is getting better. It was a great moment for her, but the real story that affects most Americans is the truth about what the actual reductions will be in the deficit. USA Today buried that story today on page 4A of the newspaper. The headline read “Deficit agreement’s savings could prove elusive.” This was actually a very good story, and I do not know why it was not front page news! The USA Today story said, “WASHINGTON — To get the lion’s share of their proposed $2.4 trillion in deficit reduction over the coming decade, President Obama and congressional leaders are relying on a process that has failed twice in the past. Under the compromise plan, a bipartisan congressional panel would seek $1.5 trillion in spending cuts or tax increases later this year. If it failed, or if Congress or the president nixed its recommendations, $1.2 trillion in spending cuts would be implemented automatically.
It’s called a “trigger,” and it has been used in the past, but with mixed results at best. In the 1980s and ’90s, triggers passed by Congress under Presidents Reagan, George H.W. Bush and Clinton eventually were evaded. Veterans of past budget deals say the same thing could happen this time.
The problem: In Republicans’ quest to guard against tax increases and Democrats’ desire to avoid harsh cuts in Medicare, Medicaid and Social Security, most of the automatic cuts triggered by congressional inaction would be in defense and other domestic programs. That may prove too much for future members of Congress to bear.” (Click here to read the complete USA Today story.)
The deficit reductions, at least in this bill, are bogus at best. Not a single penny will be cut until after 2012. Congress is in a dream world and is not taking the suffocating debt the country faces seriously.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
well, all i can say is everyone who reads this (including me) missed out on a windfall of profit. If we had all purchased stock in compaines that make smoke and mirrors we would have been made millionares thorugh this whole mess!!!
What a joke. All that washington proved is that there are two parties that are so uterly opposed that when they finally stand up for what they belive in, nothing will get done. i say we should cut the country up into 3 chunks. Give 1/3 of the states to the dems, a 3rd to the republicans and a 3rd to independents. And in those constitutions they would all say if you want to change this country move to the one that more suits your beliefs… There… problem solved..
Brian,
You are too funny man, and right on target with your comment!
Greg
Stupid, stupid, stupid…
Congress not having any cuts take affect until after the next election? What the heck are they going to run on???? More empty promises???
A local congresswoman held a conference call for her constituents to discuss why she voted in favor of this ridiculous bill. The fact that she held the call speaks volumes (pardon the pun). She ran as a conservative in 2010 and seems to keep voting “naively” or she is a closet liberal. Either way, she got an earful tonight from those who called in. One of the questions was: what kind of feedback are you receiving for your vote? Her answer was…”it is mixed”…a not very convincing lie. Her constituents lean towards the Tea Party, and they are not happy at all.
Personally, I emailed her to inform her that I plan to vote for her rival in the upcoming primary, and that I hope she didn’t buy a house in DC. I think ethics and brains are left at home in the district when people are elected to congress. This lady knew what she was elected to do, and yet has basically said “screw you” to those who voted for her.
We’ll just reload the next idiot until they get the message that they won’t be back unless they vote the way they ran. Hopefully, it won’t be too late…
And one other note I forgot to mention:
I felt a combination of anger, frustration, and disbelief at the way these congressional morons and our moronic president were applauding themselves and were so self-congratulatory. To your point Greg, congress and those leaching off the system ARE living in a dream world (I prefer the term “fantasy land”). The piper will soon want his due, and we (the masses) will have to pay him.
It has been said that the French Government fears the French people as the Government remembers the guillotine. The French do not put up with such nonsense like we’ve seen in Washington, D.C.
When will the American public wake up and realize that we’ve been sold down the river by these politicians and the Washington political machine?
Bill Clinton put nails in the coffin of our economy with NAFTA and decimating the Glass–Steagall Act. Then it was CAFTA and all of the other middle-class busting trade deals that enriched the major corporations.
I just listened to an interview with the mayor of Lansing, Michigan (Virg Bernero). Boy…that guy has got it right! He calls it like it really is and he is ANGRY! We NEED more people like him in our local and state offices!
Greg…what can the average citizen DO in order to stop the destruction of our country? I feel powerless in many ways and I know others do, too?
Does anyone who posts on this site have any ideas/answers? It seems that we are on the Titanic and the iceberg is inches away from the bow.
Thanks.
Samantha,
Please save yourself and family and prepare by gathering all the items mentioned here repeatedly. Thank you for the comment
Greg
Oh yes another Congressional Committee to look for cuts and taxes. We just did that with Bowles & Simpson. This reminds me of my favorite nun’s quote “God so loved the world he didn’t send a committee!”
I think the most disgusting thing to come out of this debate is the trashing of the Tea Party. Ordinary Americans sick and tired of poitics as usual. They would be more effective if they were all Independent and could not be used as cannone fodder in political debates. I don’t want them to be co-opted by the liars on either side of the aisle.
The misery of constant, never ending inflation for us all, the hard working citizen. It seems to be of no real honest concern to the money spenders and money printers in power. Perhaps their only goal is to raise the debt limit to the next level, a quadrillion. Whoopee, we did it!
== Whistle(blowing) through the Economic Graveyard ==
A recent fund-raising letter from the Government Accountability Project (GAP) contains this cogent observation:
“In this same spirit of accountability, confidential whistleblowers with whom we are working have revealed that the federal agencies responsible for reporting on the state of the economy are painting a much brighter picture than actually exists. [Surprise, surprise! – LWB]
“In fact, agency economists who give their best, most accurate assessment of economic conditions find themselves under pressure to sugar-coat their analyses.
“If economic policy is based on those rose-colored assessments, there is growing risk that future bailouts may become necessary. Investment banks remain inadequately policed, and foreclosure troubles continue to mount. The U. S. needs honest and objective analyses if its policies are to be effective, or our country could pay a fearsome price in the future.”
Needless to say, I’ve just sent GAP a (lamentably small) donation toward their cultivating more such valuable citizens from the ranks of current/potential whistleblowers. — Larry W. Bryant (3 Aug 11)
Greg,
As Americans we have all watched this type of debacle occur time-and-time again and have done nothing to change it. We are at fault! “We the People” have failed in our duty to be dilligent.
As Americans we have the power to control who represents us in government functions, at every level. However, we continue to let the same politicians molest us do to lazy inaction. It is much easier to vote for someone if we recognize their name, or because they have been in office before. How many of us actually know what these people stand for before we elect them, or even after they have been in office for 20 years?
I am just as quilty in this regard. Therefore, I fit right in with the millions of “We the People” who have allowed this to continue. We can bring about “real change”, if enough of us wish to do so, but will we?
As Americans we are at fault!
As Americans we have ignored our responsibilities.
As Americans we need to make changes, no one else can!
VOTE THEM ALL OUT EVERYTIME AT EVERY LEVEL!
Samantha,
Nothing is going to get done until the masses wake up and realize the gravity of the situation. Basically, we have more debt than we can service and the only thing that will happen is we will go into default or they will print so much money to keep us out of default, inflation like you’ve never seen will strip all wealth from the average Joe. Even the money they have been printing with QE1,2 is going to cause major inflation when it hits “the streets”. In my humble opinion, we can’t stop it. So the next best thing to do is to prepare. You need stocks of food, water (especially in the desert) real coins – silver and gold, and protection. A Judge pistol is good for a ladies weapon. Geo from Lake Havasu, prepare!
Thank you, Geo. We’ve been preparing for some time now. I am signing up for a training class for women on the use of firearms.
I am grateful that I have a JOB and can prepare. I feel so sorry for those who have lost their jobs and are struggling. Tucson is seeing more and more homeless.
I WISH Ron Paul stood a chance; he could help solve this mess. I like his idea of the “charge back” to the government. The rich & corporations are truly ruining this once great country! Never thought I’d see this type of dire situation in my lifetime.
Another shovel ready, “Yes, we can” destroy America bill passed. The Republicans and are spineless
If America is ever going to get better, American’s have got to drop this false left/right paradigm! THEIR IS NO LEFT/RIGHT, only one party and 95% of the time they serve their masters, the owners/ruling elites! Obama was never going to raise taxes on billionaires and their WILL eventually be huge cuts to Medicaid, medicare and Social Security, all programs that regular Americans pay a huge share of their taxes into. The funny thing is the taxes for those programs won’t go away, but the benefits will. People it’s a card game, and the elites want more money and the deck is stacked in their favor and until we stop allying ourselves with the fake two party system and actually get politically involved on a local and federal level the shell game will continue. Forget about the huge lie that entitlements are the cause of our huge debt, it NOT! Our huge debt is the product of the follwing:
1. The FED(private bankers) and the interest they charge the treasury to issue OUR money.
2. Huge military spending and military adventures around the world since Vietnam to today—think military industrial complex (IKE warned us and JFK took them on and where is he?)
3. Corporate welfare
4. The decline in top marginal tax rates on the most and outlandishly wealthy in this country.
Today voting is a joke, because every vote for 95% of us is a waste. It doesn’t matter who is elected and what party is in power. They all get their marching order from the same people. Finally, no one on the MSM gives you real information, because again the elites own that too. Which is why they have their well paid hacks telling every regular American that the water’s fine in the markets, come on jump right in as they look to set up their next bubble.
The ruling class want a stupid, uniformed society and it seems they are getting exactly what they want, again.