Trivia Fact of the Day: Debt deal could pile up $10.4 trillion in new debt over next 10 years, creating more than $20 trillion in debt
What a great deal.
(The Washington Times) — The debt framework President Obama and congressional leaders reached Sunday night runs 74 pages long, and could authorize as much as $2.4 trillion in new debt — or $32.4 billion per page.
That debt increase will get the country through the 2012 election, both sides said, but it does not bring to an end the sea of red ink that will continue to wash over the federal government for the foreseeable future.
In the near term, the bill sets budget numbers for 2012 that would require a real cut of $7 billion in discretionary spending from 2011 levels, though that’s $25 billion less than projected spending would have been had it kept pace with inflation.
Over the long term, the deal could lead to as much as $2.4 trillion in lower-than-projected spending over the next decade, which also works out to about $32.4 billion per page in lower spending — if all of the conditions are met. But during those 10 years, that still means the country could pile up another $10.4 trillion in new debt, which would leave the government well more than $20 trillion in debt by the end of the decade.
The deal immediately imposes caps on discretionary spending for the next decade, including a total of $1.043 trillion in fiscal year 2012, which begins Oct. 1, rising to $1.047 trillion in 2013 and all the way to $1.234 trillion by 2021.
Discretionary spending encompasses defense and most domestic spending outside of Social Security, Medicare, Medicaid and other programs like agriculture payments that are automatically determined by formula.
Over 10 years, the bill would mean $741 billion in lower discretionary spending than currently projected, according to the Congressional Budget Office. That works out to about a 6 percent cut, meaning $11.26 trillion in discretionary spending would still be allowed.
Republicans said it’s the first time that any spending cuts have been attached to a debt increase, and called it a move in the right direction.
“This is the best agreement we could have hoped for now, with Republicans in control of just the House of Representatives, and Democrats still controlling the Senate and White House,” said Sen. Kay Bailey Hutchison, Texas Republican. “The agreement takes a series of small but significant steps in the right direction, which is better than big steps in the wrong direction.”
Meanwhile, Democratic leaders involved in the negotiations said they were able to keep the discretionary spending cuts to a minimum — just $7 billion in real terms in 2012, and an additional $3 billion in 2013.
And they also guaranteed a certain level of those cuts will have to come out of defense programs, rather than basic domestic spending.
“It protects key investments up front in the cuts that are launched initially, the trillion dollars,” White House press secretary Jay Carney said. “It creates a firewall that ensures that savings are gleaned not just from non-defense discretionary programs, but from defense.”
Posted by WM on Monday, August 1, 2011, at 5:30 pm | 
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What ever happened to the 100 billion dollar cut for this year Cantor promised pre-Nov ’10? All they can come up with is 7 billion in cuts for the coming year in this current debacle. Empty promises.
America, we’re screwed, again. They could at least have the courtesy to give us a reach around.
the Commiecrats end game…
…destroy the United States of America…
Like I’ve said before, we need to tell the one’s that are in office now the following:
” Like your office? Don’t UN-PACK !”
And for those who crumbled like a box of crackers under the fear of losing their cushy jobs ,……
” If you were afraid of losing your CUSHY job then you should have done what the people who put you there WANTED YOU TO DO!”
Like I said for Congress: “…. Don’t UN-PACK!”
And the American people are so grateful they’ll vote these fools back into office for more….bending over!
Hey Bonehead, do us a favor and resign your speakership NOW!
$20 TRILLION in debt by the end of this decade?
We are so very fucked. Makes me want to pack it in and move to Canada right now.
I can’t wait to abandon this country………..
I don’t seriously think our congress or senate have any intentions of making this thing work. It’s a circular firing squad, therefore, everybody loses. ‘Bam knows this and is counting on himself being the only one left standing. The one thing we do know about ‘Bam is that he’s got the survival instincts of a crocodile. You only see his eyes in the water until you realize he’s flipped his tail and bitten you on the butt.
I think Michelle Bachmann would have made a much better Speaker of the House than either Boner or Queen Botox
So screwed.
Cloward-and-Piven debt deal.
It is definitely time to abandon the Republican party and start a new one. Boehner and company have certainly abandoned me. We need a party with an interest in doing what’s right for the country, not for themselves. What a bunch of dopes.
And they will blame the Tea Party for this!
Last night I was at the store, in front of me was a bottom feeder. He whips out this Huge roll and unclips his EBT card. I payed for that thank you. I follow him out You guessed it Black Esclade. Now I got my .45 and A thought flashed into my head. Go roll him, Fuck him. I`m a mild mannered Insurance guy, all bark no bite. whos business is getting CRUSHED. Shit did I just think that, better him than me. I didn`t, because its wrong, probably his grandma life savings. but I was Laughing like a crasy person when I got home. I`m getting tired of this shit.
Alinsky 101.. Create a crisis.. frighten the RINOs with name calling and blame for default.. rush a deal through.. continue Cloward-Piven spending until America is dead, dead, dead..
They won’t stop at $20 Trillion in Debt, it will accelerate.
Why would anyone think that the same people that got us into this are actually going to do anything to get us out! Most of these people in Washington have been there for 20 to 40 years! I’m baffled that anyone would think these people are serious going to do anything to actually fix the problem they’ve create. I have NO faith in anyone in Washington. Maybe a few of the new from Nov elections. I don’t like Bachmann she too is a part of the problem. Its only until we vote out each and every career politician that anything will ever change. I have lost faith that that will ever happen.
I am quite sure years down the line the dems and msm
will blame Bush
Kinda’ makes the scarifies of all those who loved and served this country and the ideals that it was built upon seem pretty senseless…. Almost time to revive some Jefferson… “The tree of liberty must be refreshed from time to time with the blood of patriot and tyrants”
and this is the best these useless bastards can do? time to start the guillitene.
“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people’s minds”
and
“How strangely will the Tools of a Tyrant pervert the plain Meaning of Words!”
Samuel Adams
No doubt in my mind. These dullards or there ilk, will spring action someway around 19.9999999 trillion dollars and save the world. Alas: what could go wrong.
They are just not serious.
And I am dumbfounded that the Republicans are so inept. What is it about them that they can snatch defeat from the jaws of victory?
And the plan is clearly beyond blaming the Republicans, and the left is going straight for the Tea Party. They have succeeded in getting the Repubs to screw up AGAIN and figure that they have the Repubs right where they want them – scared for their jobs – so now the target is us. I will bet that the next rally we hold in DC will have the left calling on their lapdogs to attack us – physically attack us.
This post, along with about 20% of the other posts on the main page are missing, just blank? I am assuming they are videos. The headlines are present, and the text, but big blank boxes below.
Is that what the issue with EI is?