Cuts? We don’t need no stinking cuts!

The shell game has begun. So is the damned narrative. If you get your news from the usual LSM outlets, you are probably thinking that the problem is all the evil republicans who want to protect their rich buddies from paying their “fair share”, whatever the fuck that bullshit arbitrary marxist lingo – and have no doubt that it is arbitrary on purpose, so they can redefine it in their favor whenever they feel they need to steal more money – is supposed to mean. The narrative is that the democrats are standing fast but working hard to get a compromise, and Politico is doing its best to carry the narrative. What’s the first issue? Them dumb republicans will have to cave to the donkeys and give us tax hikes.

Listen to top Democrats and Republicans talk on camera, and it sounds like they could not be further apart on a year-end tax-and-spending deal — a down payment on a $4 trillion grand bargain.

But behind the scenes, top officials who have been involved in the talks for many months say the contours of a deal — including the size of tax hikes and spending cuts it will most likely contain — are starting to take shape.

Cut through the fog, and here’s what to expect: Taxes will go up just shy of $1.2 trillion — the middle ground of what President Barack Obama wants and what Republicans say they could stomach.

That $ 1.2 trillion over a long period, maybe a decade or two, because there is no way they hike taxes on just the rich to get that much in a year. It’s thus going to be fucking peanuts in the grand scheme of things, because they are spending roughly the same amount every year over and above what they collect. If we say that the $ 1.2 trillion is over a decade, then doing the math, we are looking at about $12 trillion of money we don’t have over a decade, means we end up with $10.8 trillion in new debt after this new tax offsets the spending. We are fucked because these new taxes do nothing of any real consequence.

So what’s left? Well the vaunted cuts. The problem is that the donkeys, now that they have gotten their taxes, do not really want the cuts. Oh, don’t get me wrong, the LSM is going out of its way to pretend they do. Check this nonsense out:

A top Democratic official said talks have stalled on this question since Obama and congressional leaders had their friendly-looking post-election session at the White House. “Republicans want the president to own the whole offer upfront, on both the entitlement and the revenue side, and that’s not going to happen because the president is not going to negotiate with himself,” the official said. “There’s a standoff, and the staff hasn’t gotten anywhere. Rob Nabors [the White House negotiator], has been saying: ‘This is what we want on revenues on the down payment. What’s you guys’ ask on the entitlement side?’ And they keep looking back at us and saying: ‘We want you to come up with that and pitch us.’ That’s not going to happen.”

We want to cut entitlements. But by how much? Lets look at the Politico article for some perspective:

Sen. Dick Durbin (D-Ill.) told “Morning Joe” on Tuesday that he could see $400 billion in entitlement cuts. That’s the floor, according to Democratic aides, and it could go higher in the final give and take. The vast majority of the savings, and perhaps all of it, will come from Medicare, through a combination of means-testing, raising the retirement age and other “efficiencies” to be named later. It is possible Social Security gets tossed into the mix, but Senate Majority Leader Harry Reid (D-Nev.) plans to fight that, if he has to yield on other spending fronts.

Hmm. $400 billion cut? Is that in annual spending, or is that $400 billion over a decade? Because if it is $400 billion over a decade, it is chump change. And while it will not bridge the annual gap – that $1.2 trillion of money we don’t have being spent each year – $400 billion is a lot. That’s $4 billion over a decade. The problem is that even when combined with the $1.2 trillion hike, we are looking at a total of $5.2 trillion over the decade. But then that still falls horribly short. At our current spending rate, we will have $12 trillion of added debt. While $5.2 trillion is no chump change, we still would be left with $6.8 trillion in new debt. And that’s assuming that the $400 billion number is annual, which I doubt is the case.

The problem isn’t that a total $400 billion cut is insignificant, or that even if it really is a $4 trillion cut over the decade that it isn’t enough, it is that this cut thing is a total shell game. Dig down through this puff piece and eventually you find this:

Democrats want most Medicare and other entitlement savings to kick in between 10 and 20 years from now, which will make some Republicans choke. Democrats will point to the precedent set by House Budget Chairman Paul Ryan (R-Wis.) of pushing most mandatory savings off until a decade from now.

We have to wait 10 to 20 years for the cuts? Seriously? Can we just say they want NO CUTS, because if the cuts happen 10 years out, as I already showed, we will be another $10 trillion in debt (assuming the tax increases happen). And if they come 20 years later that debt figure doubles. The cuts happening so far out that we can just accept it as fiat that they would never happen, is not acceptable. It’s not even an accounting gimmick. It is a bald faced bullshit lie. And even if off topic, I want to point out that I do not recall the Ryan plan pushing the cuts out like Politico claims, but I could be wrong. Yeah CM, that your token distraction item. You can focus on this tid-bit and ignore the rest of this story.

It sure is a given that these spending cuts, if they ever happens, still fall far short of what we need. And this assumes that these marxists don’t get to do what they really want – the reason they are doing the whole Kabuki dance about taxing the rich more for – which is to use the tax hike as an excuse to increase the entitlement spending they rely on to buy votes. More debt. We have also not even factored in debt increases due to Obamacare’s costs. The taxes & penalties that this behemoth levies are significant and economy crushing, but they will never cover the cost. Anyone telling you otherwise is a god damned liar. Even more debt. So we are still looking at an enormous jump in debt over the next decade if these crooks get their way. Huge jump. At least $10 trillion, in the best case scenario. Probably more.

Look, let’s not kid ourselves. If the cuts are not immediate and significant, they are never going to happen. This plan, if it doesn’t implement immediate cuts, is a sham. The American people are being had. Well, at least those of us that are productive tax payers doing the right thing are being bent over and had. The free loaders are gonna keep their gravy train and vote accordingly. At least until the gravy train derails. We are doomed. Nobody wants to deal with reality. We have to cut back spending or we are going to end up with an economic implosion that will wipe out practically all prosperity, growth, and advancement of the last century. Shame on the crooks willfully doing this to us. We are already over the fiscal cliff, and not bright enough to admit it.

Comments are closed.

  1. CM

    At our current spending rate, we will have $12 trillion of added debt.

    Earlier this week, CBO released its updated baseline budget projections. Unlike its estimates of the President’s budget, CBO’s baseline projections largely reflect the assumption that current tax and spending laws will remain unchanged, so as to provide a benchmark against which potential legislation can be measured. Under that assumption, CBO estimates that the deficit would total $1.2 trillion in 2012 and that cumulative deficits over the 2013–2022 period would amount to $2.9 trillion.

    If Obama’s 2013 were passed:

    …deficits would total $6.4 trillion between 2013 and 2022 (or 3.2 percent of total GDP projected for that period). That amount is $3.5 trillion more than the cumulative deficit in CBO’s baseline: The policy changes would, on net, add about $2.9 trillion to projected deficits and necessitate $0.6 trillion in additional interest payments (because of increased federal borrowing).

    Thumb up 0

  2. AlexInCT *

    Man you are a fucking idiot. I assume you are pulling these numbers from this CBO report. So it is fitting that since I am calling these numbers bullshit I prove to you they are. Lucky for me it is a piece of cake to do so.

    Let’s take a look at how great the CBO has been at predicting anything. So enter the 2009 CBO projections/predictions report. You ready to be schooled?

    Jump to Page#3, Table #1. Just about every prediction for the 2011-2014 Annual Average is stupid. 6.4 unemployment? Fuck it won’t even be under 8% in 2014. And 4.8% starting in 2015? With the economic disaster the class warriors are about to unleash on our economy, I expect it to jump up, not go down.

    But since we are basically at odds about future deficits, let’s go find that table. Page #15, Table #4. What did they predict in 2010? $703 billion in the red? We were close to double that number in the red. And that is based on guesses because there was no real budget. So let’s go to 2011. They projected $498 billion in the red. That’s about a third of what we had. Maybe they get it closer to the real deal for 2012. Hmm. Maybe not. They predicted $264 billion. OK, so they are so far off that it is laughable. I think you linked their new prediction, $1.1 trillion. That’s what 25% of what we actually ended up owing? Maybe we can look at the following years and their predictions and compare them with the ones in the newer report? Good for a laugh too.

    Now maybe you will want to argue that the CBO got some things like what the effective tax rate and thus the effective revenue was going to be, or that that they this time believe the WH when they say they won’t be doing all that deficit spending, but it is all bullshit. Just like those predictions you made above. And we aren’t talking about small mistakes. This is orders of magnitude.

    I see nothing, absolutely fucking nothing, that leads me to believe they will magically conjure up extra income, and I am certain they do not plan to cut any spending whatsoever, so those projections you cite are as reliable as the promise from Bill Clinton not to pork your chubby interns if he gets the chance.

    Here are the facts. They are not going to really cut spending because they need it to buy the votes. And they certainly are not going to get enough revenue to cover their spending from any tax hike without also destroying the economy and plunging us into a depression that would make the one from the 20s look like a walk in the park.

    But you can keep believing in unicorn farts and the lies these people tell. I am not dumb enough to fall for it, even when you quote the CBO.

    And speaking of CBO projections. I can’t wait to compare the real costs of Obamacare with their predictions about 5 years from now. Then again, at the rate we are going Obamacare isn’t going to be a problem when the country has turned into a broke ass banana republic like Argentina or Greece.

    Consider yourself schooled foolish collectvist useful idiot.

    Thumb up 2

  3. AlexInCT *

    If I was wrting for these people, their audience might actually get some facts they these days do not. Then again, Leno has been getting some good ones in, like for example pointing out the other night how dangerous real journalism would be for the WH. On some level he gets it while the other two don’t.

    The fact of the matter is that the CBO numbers, espcially the predictions, are bunk. They have gotten it totally wrong, on purpose, to cover for the crooks in charge. As things stand right now we are goign to keep running massive deficits for the next decade at least. What these people want to spend will never go down, and IMO it will go up. Obama already made it clear he wants tax hikes and cuts that will never happen too. You can not argue against any of that. so basically they are going to strangle the economy with tax hikes, pretend to do cuts and do nothing, jack up spending to keep buying the votes, and the deficits will continue until everything crashes. I doubt we make it to the end of the Obama term, let alone the decade, at the rate these people are screwing up things.

    And my guess is you write for that Maher dude right? :)

    Thumb up 1