Cut, Cap and Balance -- Grand Scam USA
Boy, the Republican Congressional Establishment has really done it this time. They have designed a beautiful lead balloon that they know will never fly but works wonders anyhow. Republican Speaker of the House John Boehner wonders why the President would veto Cut, Cap and Balance. It’s a “win-win situation. Well, who really wins and who really loses?
President Obama "wins” because he gets an increase in the debt ceiling of $2.4 Triilion before the 2012 election. The Republicans “win” because they have effectively passed the onus of making unpleasant spending cuts to the States in the form of the Balanced Budget Amendment. Even though they know it will never happen, they now can say, “Don’t blame us. These cuts aren’t our fault. It’s the law.”
We know who the “win-win” folks are. But , shouldn’t this be a win, win-win situation? Shouldn’t the people win, too? That isn’t the way partisan politics works. This is strictly a political party win-win program. It is all at the expense of the American people. We are paying for it. Let’s look at the details.
Cut. The bill provides for a cut in current spending of $111 Billion. Sounds pretty good until you remember that Obama’s first quarter projection of the deficit for the current year is about $1.65 trillion. Assuming the Cuts are real (some questions about that) and that spending levels will be about the same otherwise,(some question about that , too) the budget deficit in 2012 will still be about $1.5 trillion. The $2.4 trillion given to Obama as his “win”; comes to another $8,000 in debt for every man woman and Child in America. On top of the $46,000.00 each one of us already owes. Somehow, I don’t feel like a winner in any way. Do you?
Cap. The spending cap is a percentage of GDP – Gross Domestic Product. About 22% beginning in 2012 and winding down to just under 20.0% in 10 years. What the blazes does that mean? What it means is that it looks good , nothing more. Window dressing for the American public Gross domestic Product changes each year depending on our productivity. So spending isn’t really capped. It just looks good on paper. And, if we continue to accept deficit spending, it doesn’t really matter what some theoretical “Cap” is.
The Balanced Budget Amendment? There are so many barriers to it becoming law that it is really only “pie in the sky,” a useful dodge that can be used by the politicians to get them off the hook for making the painful cuts that are necessary to restore our fiscal integrity. The politicians know this. Senate vote, Obama veto, two thirds of state legislatures (cutting their own throats) No way!
You can’t build a beautiful lead balloon without smoke and mirrors and other deceptions.
The Associated Press reports this bill is supported by Tea Party organizations. Well, there are Tea Party Organizations and there are the real Tea Party Patriots. One of the usual characteristics that accompanies a successful program is the “Bandwagon” effect. The Tea Party Patriots are the real grass roots folks who have about 3800 independent associated organizations nationwide. Then there are the “bandwagon” groups who are riding on the coattails of the Patriots. Some of these are The Tea Party Express, a PAC that has traditionally worked for the RINO establishment people. The Tea Party Inc, a non profit which is associated with a PAC with some common officers. Tea Party Nation that is trying to make an identity for itself, and the Tea Party US. The fact is Mark Meckler , cofounder of the Tea Party Patriots, appeared on MSNBC recently and told the anchor over her incessant yapping that the Tea Party Patriots opposes any increase in debt limit. He said there is plenty of revenue to service debt and pay social security benefits. Debt Service (including Social Security) amounts to only about 6% of revenues. So if President Obama Does not service the debt or pay Social Security benefits, It isn’t because the money isn’t there, it is because HE CHOSES NOT TO DO SO. A cruel and dangerous negotiating ploy.
Social Security Checks? Can’t pay? In a February 2011 USA Today article quoted by Forbes columnist Merrill Mathews, President Obama’s Budget Director said, “Social Security benefits are entirely self financing – the trust fund will continue to collect interest and grow until 2025 and has adequate resources to pay full benefits for 26 years.”
And the Presidents lie? If the debt ceiling isn’t raised, the United States will be unable to service its debt and will be in default. As Mark Meckler said, there is plenty of revenue to service the debt. If the President elects not to service the debt, it will be a conscious decision to create an international crisis.
Yes this is a scam. Many insiders are saying this is just a means to set up additional negotiations on raising the debt ceiling. Partisan politics at its spectacular worst. With never a thought for the effect it will have on the people, their children and grand children.
Probably the only good thing to come out of this partisan show will be to identify those establishment politician of both parties who deserve a boot. And just as important, those who deserve to stay and represent us.
Cut, Cap and Balance? No significant cuts with a continuing deficit of about $1.5 trillion a year. The cap will allow another $2.4 Trillion increase in the debt ceiling through 2012 – $8000.00 new debt for every man, woman and child in the United States. The new total will be $54,000.00 for each of us. Spending is to be capped at a percent of Gross Domestic Product whatever that means.
Balanced Budget Amendment. Pie in the Sky. Someone else’s responsibility. The real lead balloon. Yes, this is strictly a partisan game where everyone wins except the people.
What can we do? Hold out for keeping the debt limit where it is and gradually reducing it. The game isn’t over. Then, clean house. Get rid of those people who are serving themselves and their parties at our expense. Support the good guys, wherever they live. Pray.
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