The budget problem is very big and getting bigger. For the nine months of fiscal year 2011 to date (October 2010 to June 2011), the U.S. has paid out $386 billion in interest on the national debt. The government has had revenues of $1,733 billions. Its spending has been $2,705 billions. It borrowed $972 billion. That’s $2,705-$1,733.
Debt Deal An “Abject Surrender” By Obama…First, there will be big spending cuts, with no increase in revenue. Then a panel will make recommendations for further deficit reduction — and if these recommendations aren’t accepted, there will be more spending cuts.
- Cut $1 trillion spending/10 years.
- Reference to new revenue?
A revenue-free debt ceiling bill that includes a “trigger” only for automatic cuts in defense, Medicare and other programs if a second deficit reduction package isn’t enacted by the end of this year.