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August 1, 2011 / 74

DC Debt Crisis Averted???

Ummm… not!

The crisis isn’t the debt ceiling. It’s the spending, and absolutely nothing has been done about that.

And I have a question. Mr Obama says, the deal was “all spending cuts.” The question is, are these “Des Moines” spending cuts, wherein you spend less than you spent before, or are they WASHINGTON DC spending cuts?

A Washington DC spending cut is where Congress reduces the requested amount of spending increases, but actually spends more.

For example, let’s say that Head Start spends $8 Billion this year and decides they need $10 Billion for the next year. Knowing how things work in DC they ask Congress for $13 Billion.

Congress says “No. We need to get this spending under control!” and they reduce the request to $12 Billion and pass it. In Washington DC, that is called a $1 Billion spending cut even though Head Start would actually get a 50% increase in funding and $2 Billion more than they figure they’d need. Then next year, to protect that extra unneeded $2 Billion, they’d make sure they spend all of it and ask for more.

That is how “budgeting” works in Washington DC.

So to achieve the stated $2TN in “spending cuts” per the agreement, all Congress and Obama would have to do is simply request $2 TN more than they want and plan to spend.

Isn’t that a sweet deal? And most of the people would be happy and think, “Wow! They reduced spending just like they said they would. And they vote the con artists and scammers back into office.

And of course, going unsaid in all this celebration over the “deal” is the fact that, according to the national Debt Clock the US is currently going somewhat over $1.3 TN a year further in the hole. So even if these were Des Moines spending cuts, they PLAN to run up the national debt a further $13 TN, while “reducing it” by $2 TN, for a net increase in the national debt of $8 TN – or to put it another way, they plan to MATCH the 200 plus year cumulative national debt as it was about the time Mr. Obama moved into the Oval Office and put his feet on the desk.

By God that’s a debt reduction! No matter how you slice it, THE DEBT CRISIS IS NOT OVER!!! And it gets worse by the day.

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