Monday, August 1, 2011

Oh, Just in Case You Fear the Debt Deal May Slow the Wars

Economics of Contempt tweets:

Note that the President and Congress will be allowed to use supplemental war approps bills to bypass the sequestration. Loophole city.

From the White House fact sheet:
If the Committee Fails to Report Legislation That Achieves $1.2 Trillion in Deficit Reduction, or Congress Fails to Enact the Committee's Recommendations, Sequestration is Triggered. If the joint committee fails to come to a majority agreement on recommendations that achieve at least $1.2 trillion, or Congress fails to enact recommendations that produce at least that amount, sequestration is triggered, forcing across-the-board spending cuts. The sequestration will be similar to the 1985 Gramm-Rudman-Hollings trigger and, with interest savings, will make up the differential between the deficit reduction achieved by the joint committee and $1.2 trillion.

Sequestration Will Use Balanced Approach to Spending Cuts. 50 Percent of Sequestration Will Come From Defense. If across-the-board cuts are triggered, 50 percent will come from defense spending (Function 050), with the remaining 50 percent coming from non-defense spending. The spending cuts would apply to fiscal years 2013-2021, and apply to both discretionary and mandatory spending programs with important exemptions. The amount of the defense spending cuts each year would be approximately $50 billion if sequestration is triggered


  1. You didn't think Murder, Inc. could be slowed down by a little thing like debt now did you? Hahahahaha!

  2. I believe a war is in the making. It will be used as an excuse to further raise the debt limit, as usual, and this time the Republicans cannot say no anymore. I believe the target will be Iran, as someone predicted earlier that it will happen in September 2011.

  3. Where do they get the percentages from? Does defense make up 50% of the current budget? If not, why do they force a 50% cut to defense?

    Sounds like they set this up in such a way that the Republicans would be compelled to reach some sort of agreement, otherwise they look "weak" on defense. Why don't they highlight the percentage of cuts to Social Security, or Medicare, or the Department of Education?


    Speaking of the evils of the military industrial complex, these are some great examples.