It's a set up. All this angst is to reinforce the idea that the tea party philosophy is rigid and unreasonable. It is not rigid, it is principled. It is not the least unreasonable. Still, in the next round we're going to hear, "You terrorist cretins refused to compromise last time, and THIS TIME you're not getting your way."
Here's the terrible thing those moronic Hobbits wrought:
- $9 trillion Baseline increase over ten years
- $0.917 trillion spending reduction...
- For a $8.083 trillion Baseline increase over ten years
- Add to that a $1.5 trillion Budget Act Super Committee tax increase, (my prediction) and you get... a $9.583 baseline spending increase over ten years.
Oh, and we get to have a fantasy vote on a Balanced Budget Amendment in the Senate.
Status quo on the debt trajectory. Size and scope of government unchanged. Summary: We avoid a liquidity crisis by increasing the ongoing solvency crisis.
Here are two examples of what the debt ceiling deal means will continue.
Graphs courtesy Zero Hedge.
You decide if that represents an immediate, existential threat to the United States.