Wednesday, July 27, 2011

On the U.S. Debt Ceiling

  1. There won't, CANT'T be a default if the ceiling is NOT RAISED, Social Security checks must and WILL go out after August 2nd (unless Obama DECIDES otherwise)
  2. There's NO plan being discussed in Congress that CUTS spending at all. All plans just REDUCE THE RATE OF GROWTH. If they would simply FREEZE spending at the current levels CBO would score it as a 9.5 TRILLION CUT over 10 years. The ONLY deal that WILL cut spending is NO DEAL by August 2nd and beyond
  3. US debt is rated according to its ability to PAY back, NOT according to our willingness to borrow MORE. Therefore, it is if the debt ceiling IS RAISED without REAL CUTS, then there WILL be a REAL DEFAULT