With a couple of tweaks here and there- it is essentially the Senate version or Reid's plan. It cuts very little and then attempts to baffle you with a bunch of hollow promises and future guarantees which will not come to fruition. In fact sorting through all that bullshit took me several hours this afternoon. Ultimately- it shows you what they did. They have kicked the can past 2012.
Here then is the agreed upon garbage.
-There will be an immediate 400 billion debt ceiling hike that occurs on Tues. (Aug. 2.)
-The debt ceiling will be raised again by Sept. when another 500 billion in debt will be added.
In exchange for this, the government will identify and commit to 1.2 trillion cuts in ten years. (This undoubtedly will come from winding down our two wars just as Reid proposed.)
Just for shits and giggles I embedded this. Real time. http://costofwar.com/en/
-A committee of twelve congressman will be tasked with finding 1.5 trillion in cuts. The cuts will be voted on by year's end. The debt ceiling will be raised another 1.5 trillion whether or not the committee's cuts are agreed on or passed. (Dollar for dollar, no reduction)
In other words, the COMMITTEE is simply a HOLLOW PROMISE. Their work is non binding. The debt ceiling goes up whether cuts are agreed to or not. Nobody will be watching this committee either.
However, if the committee fails to reach consensus on a list of cuts, then automatic cuts of $1.5 trillion will be imposed like this...
- 50 percent from the Defense Department. (Winding down wars, bet me)
- 50 percent from non-defense discretionary funds. (75 billion per year)
- However, the automatic cuts may not include Social Security, Medicare, Medicaid, veteran's benefits or other welfare programs such as food stamps, Aid to Families with Dependent Children, the Women's, Infants and Children's (WIC) program, etc.
Here then is the Frankenstein Government Summary.
The debt ceiling is going up 2.7 trillion just as President Obama had hoped. There will be no further discussion of this topic until 2013 when we will be even more bankrupt than we are now and when- hopefully President Screw Off will be making money talking about his adventures on some college speaking circuit.
The net-net easy math on all of this? Total 2.7 trillion debt added. Insignificant cuts. A giant tea party failure. It will be interesting to see how they vote and what they say about this package tomorrow as they face Geithner's imaginary deadline.