I dont really think anyone expected the Super Committee to come up with anything, and i guess they techniqely have until wensday but this is still just sad. I remembering hearing about a month ago that the automatic defense cuts that would happen are actually just a ploy and a gamble by the GOP. They wrote them in such a way that they can be reversed in 2013 (when the cuts actually start taking place) on the idea that the GOP will win the white house in 2012. It has allowed the GOP to play “harder” since they think they are going to win 2012 and are not very concerned that the cuts will actually ever take place.
Also what I find hilarious in a very sad/unfortunate sense is that the mandatory reduction of 1.2 trillion isn’t really 1.2 trillion since it takes into the cost of interest of the over spending. They clearly are calling it 1.2 trillion to trick us into thinking they are doing more then they are actually not even doing.
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By law, 18 percent of the automatic savings are assumed to come from interest costs the government would save from reducing the debt. If the Super Committee fails completely, out of the $1.2 trillion in automatic savings, $216 billion would be assumed interest savings.
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Also just as “hilarious” is being reminded that our politicians cant come up with 1.2 trillion, which i actually is 984 billion, to cut from 44 trillion over 10 years.
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Mind-boggling to many is the fact that the $1.2 trillion in cuts over 10 years is a fraction being applied against a budget that calls for $44 trillion in spending over the same time period.
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No wonder the American people and rating agencies have lost faith
Congress May Try Blocking Cuts If Debt Panel Fails | Fox News