Super Committee Fails… As Expected!
The super committee was doomed to fail from the start. That was obvious during last August’s bickering. Today only formalized the inevitable.
The fallout from this failure is enormous…
- How will it affected the cost of government borrowing?
- Will the U.S. credit rating drop again?
- How will lenders, like China, react?
- How will the markets react?
- Is another global recession unavoidable?
- What is the geo-economic impact of the failure?
- How much will Treasury bond yields jump?
- Will it trigger an irrecoverable downward economic spiral in both Europe and the United States?
These are life-altering questions whose answers affect all Americans.
The fact that Congress can’t come to agreement to reduce spending by less than a piddly 3% when debt climbs by over $4 billion dollars every single day of the week is unconscionable.
The U.S. national debt topping $15 trillion dollars this week. That spotlights our massive debt for all the world to see.
Now, today, all the world can see our massive failure to control even a small fraction of that ginormous debt growth.
That will have a dramatic effect on our nation’s ability to borrow.
$21 Billion in 2012
$21 billion… that is the diddly-squat amount in spending cuts approved by Congress last August for 2012.
That is out of the $917 billion in total cuts approved over 10 years in the Budget Control Act of 2011. That is the agreement that prevented a catastrophe. It prevented a total government shutdown and debt default.
The U.S. budget deficit for 2012 is estimated at $1.48 trillion by the CBO. $21 billion is a fractional 1.42% of that total.
The national debt grows $21 billion in just 5 days! The other 360 days of 2012 we will still have the same runaway debt growth we have right now.
The deal that failed today was for cuts that don’t even take effect until AFTER the 2012 elections in 2013.
In a highly polarized Congress and Presidency no politician will agree to anything even remotely controversial that might jeopardize their chances for re-election.
Because of that all Americans will be made to suffer.
As informed voters, for our very survival, each and every American needs to remember today’s action the next time we see a ballot in front of us.