Congressional leaders have come to a compromise with the White House signing off the deal with all sides not getting what they want but a reasonable deal that for sure will no longer threaten the United States Government from defaulting on its obligations until at least 2013. The deal reached includes raising the U.S. debt limit by at least $2.1 trillion and slash government spending by $2.4 trillion or more. It is not the best deal for Democrats but it is not the best deal for Republicans either. When you compromise, that is usually the case unless you want to be a dictator as some in the far Right or some in the far Left want their Government to act like. However, before the online spinsters start doing their regular below the belt hit job on how this Administration has failed them, how Obama is a Manchurian President whose deception on entitlements is out of control and has declared victory throwing a "Mission Accomplished Banner" spin to it, I thought it would be fair to do a summary of the deal before the online Organized Circular Firing Squad Trojan horse crashes the truth and try to bury it if it hasn't already been spun out of control by now.
Summary Of The Deal:1) The uncertainty over U.S. economy is no longer threatened by default. 2) 10-year discretionary spending caps (defense and non-defense) generating nearly $1 trillion in deficit reduction 3) $350 Billion from the Base Defense Budget – the First Defense Cut Since the 1990s. 4) Protection in the discretionary budget to the Pell Grants investment that will award a maximum of $5,550, helping over 9 million students pay for college tuition. 5) Increase the debt limit by $2.1 trillion 6) No debt ceiling increase drama after the 2012 election. 7) Creates a bipartisan committee to identifying an additional $1.5 trillion (which is part of the $2.4 trillion package) in deficit reduction, including from entitlement and tax reform, where by Congress is to vote by December 23, 2011. 8) If the bipartisan committee fails, enforcement mechanism will trigger spending reduction in the amount of $1.2 Trillion in Deficit Reduction beginning in 2013 that will include a 50/50 cut between domestic and defense spending. 9) Enforcement mechanism protects Social Security, Medicare beneficiaries, and low-income programs from any cuts or these programs are off limit to any sequester. 10) About the sequester if the the bipartisan committee fails:
Sequester Would Provide a Strong Incentive for Both Sides to Come to the Table: If the fiscal committee took no action, the deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education. That outcome would be unacceptable to many Republicans and Democrats alike – creating pressure for a bipartisan agreement without requiring the threat of a default with unthinkable consequences for our economy.Can someone point me to where the big 3 (SS, M and M) has been cut in this deal? No Social Security or Medicare benefits would be cut just to make sure that we are all in sync here. Dean Baker is the co-director of the Center for Economic and Policy Research writes:
The NYT is starting to do the same sort of editorializing in news stories for which Fox and the Washington Post are famous. It told readers that President Obama had proposed a change in the Social Security cost of living adjustment formula that would reduce scheduled benefits and then adds that this cut was "long sought by economists." Umm, which economists?[hey, may be Krugman] All economists? Not this one, or many others with whom I associate. Is there a poll of economists that provides the basis for this assertion? If so, a cite would be in order.Some progressives run with this kind of gossip, taking an unsourced quote and spread it on the internet to feed the hair-is-on-fire Professional left critics of the President so that they can do what they do best with the regular condescending bullshit like my favorite cartoon depicts them here: Here is the bottom line. The President has curved up a deal with all parties involved in this negotiation and his willingness to compromise in the wee hours has paid off to ensure that the United States Governments' treasury from being forced to default on its legal obligation which would have caused catastrophic damage to the economy. Moreover, it has avoided: 1) a discontinuance of payments to Medicaid payments to states, 2) a discontinuance of payments to U.S. Military salaries and retirement benefits, 3) a discontinuance of payments to Social Security and Medicare benefits, 4) a discontinuance of payments to Veterans' benefits, 5) a discontinuance of payments to Federal Civil Service Salaries and Retirement benefits, 6) a discontinuance of payments to Unemployment benefits to states, 7) a discontinuance of payments to Interest and Principle payment on Treasury Bonds and other securities; Student Loans payments, 8) an increase interest rate in Government, Corporate and Consumer borrowing, 9) a potential decline of equity prices, home values and retirement accounts, and 10) Loss of jobs, 11) the reluctant for businesses to continue to make new investments and spend to spur the economy. It is hard as it is to try to get stuff through Congress with Republicans in power. However, what Democrats have accomplished with the cards they have been dealt with while some critics think President Obama has deceived us all year long is that the United States Government is not in default status. We have removed "cloud of uncertainty over our economy at this critical time by ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain." For a little dose of truth to those who think compromise is a dirty word, read the fact sheet at your leisure instead of going wild throwing a tantrum insulting and lying about how President Obama and his Administration ripped you off. Better yet, try to spend a fraction of your time pouncing on the Republicans you are technically aiding by throwing President Obama under the bus. That would be what I would call a progressive movement, showing what they really stand for. If you want to contribute to electing more and better Democrats, start by signing up here to register new voters for the next round of elections coming up soon. Having the majority in both the House and Senate is the only way we can change the direction of our politics. Until then, rest assured that the agenda will be framed by the current majority and you will just be the same old you for the next 18 months being the dissatisfied left.
Emphases added by me