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Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 9:00 am
by Beiruty
Now we are $14.3T Federal Debt and running $1.4T Federal Deficit per YEAR.
So by raising the Debt limit by $2.8T and reduction of $2.8T over 10 yrs, that $0.28T per year. Net, we will be running $1.1T deficit per year.
So, in 30 Months, the Debt would be $17T AND we will hit the limit again and keep running deficits of size of $1T per year.
The above does not make financial sense! Thtat is
Just look how the Presidential Spending MORE DEFICITS by $2.7T over 10 yrs for a NEW total of $9.5T over 10 yrs, that is 950 Billion each YEAR for the next 10 yrs.
In 2012, the deficit under the President’s budget would decline to $1.2 trillion, or
7.4 percent of GDP, CBO estimates. That shortfall is $83 billion greater than the
deficit that CBO projects for 2012 in its current baseline. Deficits in succeeding years
under the President’s proposals would be smaller than the deficit in 2012, although
they would still add significantly to federal debt. The deficit would shrink to 4.1 percent of GDP by 2015 but widen in later years, reaching 4.9 percent of GDP in 2021.
In all, deficits would total $9.5 trillion between 2012 and 2021 under the President’s
budget (or 4.8 percent of total GDP projected for that period)—$2.7 trillion more
than the cumulative deficit in CBO’s baseline. Federal debt held by the public would
double under the President’s budget, growing from $10.4 trillion (69 percent of
GDP) at the end of 2011 to $20.8 trillion (87 percent of GDP) at the end of 2021
http://www.cbo.gov/ftpdocs/121xx/doc121 ... Report.pdf" onclick="window.open(this.href);return false;
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 11:53 am
by sjfcontrol
Keep in mind, when they talk about cuts, they are...
1) moving most of the cut to the "out years"
2) "out year" cuts are not guaranteed to be made by the congress then in power (this is called "kicking it down the road")
3) are calculated using "baseline budgeting"
Baseline budgeting is where it is assumed that everything will increase by a certain percentage every year. The "cuts" are just a reduction in the rate of increase. For example, it's like assuming that your food budget, currently at $10,000/year, increases at 10% ($1,000) per year. You agree to 'reduce' this expenditure by, say 2%. So, next year your food budget is $10,000 + the $1,000 baseline increase, minus the 2% ($200) 'decrease'. Your budget, therefore, "decreases" from $10,000 this year, to $10,800 next year.
Don't forget to take that "savings" to the bank!
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 11:56 am
by Shoot Straight
If they limited spending to what's authorized by the United States Constitution, they would have no trouble paying for everything without increasing the debt limit. The problem is caused by politicians who think the Constitution is toilet paper instead of the highest law in the nation. The phrase "enemies foreign and domestic" comes to mind when I look at what they're doing to the country.
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 1:02 pm
by RoyGBiv
Shoot Straight wrote:The phrase "enemies foreign and domestic" comes to mind when I look at what they're doing to the country.
WE are the reason for this.... Voters... Sheep, on average.
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 1:20 pm
by Shoot Straight
RoyGBiv wrote:Shoot Straight wrote:The phrase "enemies foreign and domestic" comes to mind when I look at what they're doing to the country.
WE are the reason for this.... Voters... Sheep, on average.
When the people getting government checks outnumber the taxpayers, the people voting for more "free money" are not sheep, they're predators.
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 7:45 pm
by BigPa
Shoot Straight wrote:RoyGBiv wrote:Shoot Straight wrote:The phrase "enemies foreign and domestic" comes to mind when I look at what they're doing to the country.
WE are the reason for this.... Voters... Sheep, on average.
When the people getting government checks outnumber the taxpayers, the people voting for more "free money" are not sheep, they're predators.
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 7:46 pm
by BigPa
And they will fight hard to keep getting all the freebies.
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 10:07 pm
by rdcrags
All good stuff, guys. Disgusting, ain't it? I confess. I voted for Perot because he said he would drastically shrink the size of the Federal government, and I am convinced that a way needs to be found to accomplish that. This despite the fact that my mother was a government employee (telephone operator supervisor at NASA).
Re: Debt limit and Spending cuts!
Posted: Sun Jul 31, 2011 11:13 pm
by snatchel
This is crazy. All I know is we are spending too much money. How comlicated is it to create a budget and stick to it? We the People, or the vast majority of us are able to keep a budget in our own homes. Tell ya what, if the politicians paychecks were docked for overspending, we would have one heck of a balanced budget. We are talking down to the penny.
Re: Debt limit and Spending cuts!
Posted: Mon Aug 01, 2011 1:13 am
by bnc
snatchel wrote:This is crazy. All I know is we are spending too much money. How comlicated is it to create a budget and stick to it? We the People, or the vast majority of us are able to keep a budget in our own homes. Tell ya what, if the politicians paychecks were docked for overspending, we would have one heck of a balanced budget. We are talking down to the penny.
I wish it were that easy, but the congress sets its own pay and most of them are independently wealthy anyways. Cutting their paycheck won't dilute the power that they lust for.
Re: Debt limit and Spending cuts!
Posted: Mon Aug 01, 2011 1:38 am
by Dave2
bnc wrote:snatchel wrote:This is crazy. All I know is we are spending too much money. How comlicated is it to create a budget and stick to it? We the People, or the vast majority of us are able to keep a budget in our own homes. Tell ya what, if the politicians paychecks were docked for overspending, we would have one heck of a balanced budget. We are talking down to the penny.
I wish it were that easy, but the congress sets its own pay and most of them are independently wealthy anyways. Cutting their paycheck won't dilute the power that they lust for.
There seems to be only two solutions: get fiscal conservatives/small government folks in power, or pass a balanced budget amendment. I dislike the second option because I can see a couple situations where being able to go into a deficit might be a good thing (paying for a legitimate war or dealing with a large-scale disaster). Yeah, I know such exceptions could be in the amendment, but that will just lead to congress declaring toe-stubbing to be a "large-scale disaster" or some other such nonsense so they can spend more.
Re: Debt limit and Spending cuts!
Posted: Mon Aug 01, 2011 2:52 pm
by Obi-Juan
BigPa wrote:Shoot Straight wrote:RoyGBiv wrote:Shoot Straight wrote:The phrase "enemies foreign and domestic" comes to mind when I look at what they're doing to the country.
WE are the reason for this.... Voters... Sheep, on average.
When the people getting government checks outnumber the taxpayers, the people voting for more "free money" are not sheep, they're predators.
There's a proven fix for predators that prey on us and ours: “safety, security and survival.”
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