The House passed a $2.4 trillion debt-ceiling increase Monday night with the Senate planning to follow on Tuesday, after one of the most ferocious fights ever over government spending. It raises the debt limit through the end of 2012.
If the panel deadlocks or Congress doesn’t accept its plan, a pre-arranged set of spending cuts would kick in.
The agreement, struck late Sunday, raises the debt cap by up to $2.4 trillion in three steps. It cuts $917 billion in spending over 10 years and creates a congressional committee to close the deficit by an additional $1.5 trillion. Unfortunately that is not enough. The debt rating agencies have projected the cuts need to be $10-$12 Trillion over the next 10 years. On the current record-setting pace of this administration we will hit $25 Trillion in debt within the next 6-8 years.
Can you say DOWNGRADE. Look at Europe and Greece. It’s heading to our shores.
Here’s the little SECRET… built into the budget is an annual 10% increase automatically. So, if you have a $15 Trillion dollar annual budget, guess what? Next year it automatically increases 10% or $1.5 Trillion to $16.5 Trillion.
These are not spending cuts! Spending cuts would imply that you go beyond the 10% annual increase, that’s when you can deem them spending cuts. Washington, let’s quit playing this game! You are ruining our country and everything it stands for.
Let’s all operate our personal budgets the way the government does. We are in financial difficulty, so we will spend our way out of this. Also, let’s print more money. How does that work?
The U.S. government has grown dramatically under this administration. In fact more people are on welfare than anytime in history. Debt projections are even greater now than this graph predicts, possibly topping $1.7 Trillion for 2011.
Kicking the debt can down the road…we will have to deal with this all over again, and again, and again. We are on a collision course, world history demonstrates what happens to country’s who continue this game and not deal in reality.
Will USA be one the history books write about… like other countries around the world who followed this same path?