Means:
1. An increase in the deficit of $7 trillion plus over 10 years, given that the deal is not based on the current budget but a cut against future projected growth, i.e. the so-called "baseline" budget.
2. The Super-Congress will be formed where more budget distortions will be created and where the government will take the axe to the benefits of those who during their working years expected the government to be honest about retirement and healthcare promises--and didn't save anything on their own.
Further, baseline budget projections fail to take into consideration the likelihood that interest rates will return to double digit levels. Such an increase in rates will result in deficits many times greater than the already built-in $7 trillion.
Bottom line: The deal is very inflationary. Buy gold.
Boehner says "Our framework is now on the table that will end this crisis in a manner that meets our principles of smaller government,..." This guy has been smoking the curtains again. This is leadership? A puppet in a five hundred dollar suit. He just screwed my grand children again, and I have to like it? Vote him out and an other leach takes his place. Gutless idiot.
ReplyDeleteIt is Monday and of to the gold mine with my pick and shovel. Work my way out.
Correction, the debt will grow by 7 trillion, not the deficit. I disagree on the buy gold recommendation, I would buy WTI or NSB oil futures.
ReplyDeleteUh, the debt grows by the deficit increasing. It's the same thing.
ReplyDeleteMy understanding is that debt is a stock and the deficit is a flow (typically defined on an annual basis). My guess is that it is indeed the *debt* that will grow by 7T.
ReplyDelete@RodentCleaner, We can have a deficit that is being reduced simultaneously with an increasing debt.
ReplyDeleteThe debt can not grow without an absolute increase in the deficit. The debt grows by the size of the deficit.
ReplyDelete