Archive for July 31st, 2011

July 31, 2011

Deal Reached on Debt Limit, But What About the Debt?

by lewwaters

Obama has announced a compromise deal has been reached between leaders in D.C. on raising the debt limit for the US Treasury to borrow more.

Politico

So far announced, future spending cuts and no tax increases.

Chairman of the Congressional Black Caucus, Rep. Emanuel Cleaver says, “early reports of the new deal appeared to be ‘a sugar-coated Satan sandwich’.” HERE

Rep. Raúl Grijalva (D-Ariz.), co-chairman of the Congressional Progressive Caucus said, “This deal trades people’s livelihoods for the votes of a few unappeasable right-wing radicals, and I will not support it,” before he had even received a briefing on it.

Rep. Kurt Schrader, a member of the Blue Dog Coalition says, “While we’re a very diverse Caucus, at the end of the day, we’re not going to put our ideology ahead of the good of the country,” indicating enough House Democrats will support it.

House Speaker John Boehner, rounding up votes to pass the deal in the House said, “the agreement isn’t the greatest deal in the world, but it shows how much we’ve changed the terms of the debate in this town.”

News Tribune reports,

“In the first stage under the agreement, the nation’s debt limit would rise immediately by nearly $1 trillion and spending would be cut by a slightly larger amount over a decade.”
“That would be followed by creation of the new congressional committee that would have until the end of November to recommend $1.8 trillion or more in deficit cuts, targeting benefit programs such as Medicare, Medicaid and Social Security, or overhauling the tax code. Those deficit cuts would allow a second increase in the debt limit.”

Friday, July 29 Moody’s stated the Country will likely lose its AAA rating no matter what deal is reached.

See also CNBC

We get almost $3 Trillion more in debt this year with promises of lowered spending in the future.