posted on June 30, 2011 11:30
I asked a friend who works up in Washington for a Congressman, What’s going to happen on the debt ceiling?
They’re all, he said, all the leaders, dying to raise it. The Republican leaders will agree to raise the ceiling $2 trillion in exchange for $2 trillion in spending cuts over ten years.
So, hypothetically, I said, they could cut $200 billion – 5% of the budget – right now, then multiply it by 10 and say they’ve cut $2 trillion – but all government spending drops is 5%?
Heck no, he said, They’ll defer the cuts to the end of the ten years and they’ll probably never happen.