Reid debt ceiling plan reaction
It's full of phony cuts that don't happen at all until long after Dear Leader's re-election, but let's turn to ZeroHedge for a non-partisan analysis.
No entitlement reform? $1.2 trillion in discretionary cuts over ten years when deficits are running $1.6 trillion each and every year? This is not a serious proposal.
Following hot on the heels of the proposed Boehner rehashed plan, we get the first details of where the bulk of the $2.7 trillion in proposed savings will come from. Are you ready for this? REID PLAN SAID TO HAVE $1 TRLN SAVINGS FROM WINDING DOWN WARS. That's right. In some parallel galaxy far, far away, lack of expenditures, on America's 6 front wars to be sure, is now considered a "saving"? Front lobe hemorrhage to commence in 5 seconds. And the other migraine-inducing details of the Reid plan are...
- REID PLAN WOULD INCLUDE $30 BLN IN FANNIE, FREDDIE CHANGES
- REID PLAN WOULD INCLUDE $400 BILLION IN INTEREST SAVINGS
- REID PLAN SAID TO INCLUDE $1.2 TRLN DISCRETIONARY SPENDING CUTS
- $10-$15 BILLION IN AGRICULTURE SAVINGS
- and of course... THE CREATION OF A BIPARTISAN PANEL TO FIND FUTURE SAVINGS. I.E. WHY DO IT NOW, WHEN YOU CAN DO IT... NEVER
So $1.2 trillion in discretionary cuts, which means millions in government job losses. What was that about the unemployment rate again? And what the hell is an "interest savings" - is that the interest on the debt that would be incurred if the deficit cuts were not imposed? Or will Reid replace Brian Sack in the Fed's OMO desk and proceed to sell trillions in Long-term bond calls to get the 30 Year rate to -infinity?
Even the moronic rating agencies won't hesitate to downgrade the US to F- based on this deranged gobbledygook.