Congress has compromised again, this time on the debt ceiling deal, which has been signed into law yesterday.
According to Bloomberg, this agreement raises the debt ceiling “by at least $2.1 trillion and slash federal spending by $2.4 trillion or more.” This compromise raises the debt ceiling from $14.3 trillion to $16.4 trillion, which Voice of America reported will get us to 2013 — less than two years from now.
Some from both sides think that they will be averting an economic crisis because the federal government wouldn’t have to default on their debt, others called it a “Satan sandwich.” Soon, the Treasury can continue to “pay their bills” by borrowing more money to do that with, thanks to raising the debt ceiling. And there will, supposedly, be spending cuts.
Fox News reported that “according to a Power Point presentation presented by Boehner to the caucus, roughly half of the proposal’s automatic cuts would come from defense and half from Medicare.” But will there actually be debt reductions anywhere?
Rush Limbaugh stated yesterday that
They think there’s been a lot of cuts in spending. There haven’t been any cuts in spending. There wasn’t one dime in spending cut. The baseline alone guarantees that. Obama’s free to spend 2.1 or $2.4 trillion right now.
Most likely the money from the “cuts” in those departments will go to other departments, or they’ll ignore cutting spending completely. Or, as a Reuters article pointed out, it could be reversed by a different Congress.
In fact, the Heritage Foundation stated that “the legislation does not require the joint committee to do that job. It is merely a “goal” of the joint committee to recommend at least $1.5 trillion in deficit reduction.” The joint committee isn’t required to recommend any deficit reduction to Congress, so it can ignore that job if wanted because it’s not in the bill.
To God be the glory,