The deal being struck to raise the federal debt ceiling is more business as usual. More exploding spending and debt, no actual spending cuts and likely tax hikes coming to help pay for Washington’s insatiable appetite for spending our money.
- Raising the debt ceiling by as much as $2.4 trillion is the largest such increase in history – the second largest coming of course last Feb. when Obama increased the debt ceiling by $1.9 trillion.
- There are no spending cuts. The reported “cuts” are typical political math where spending grows every year, but a little less than previously hoped.
- That “super committee” formed to find future “deficit reductions” to reach the deal’s goal of $2.4 trillion over ten years may very well end up raising taxes instead of finding additional spending reductions to reduce the deficit
- This deal doesn’t even guarantee against a downgrade of the federal debt’s credit rating, as agencies have indicated the fed’s rating may fall regardless of a deal. Seems that signaling your seriousness about getting your debt under control by raising your debt limit higher than ever isn’t received well by credit ratings agencies
To see how the NC delegation voted and reacted to the deal, see this N&O summary.