I never thought I'd see the day...

I never thought I'd see the day when the Democrats in Washington would agree to 4 dollars in spending cuts for every 1 dollar in new revenue (eliminated loopholes with lower rates).

And the Republicans walked away...



This insanity can be traced to the Tea Party. The Tea Partiers are woefully incompetent and wallow in their ignorance.

If the debt ceiling is not raised, I hope you're all prepared for the consequences.

What might happen if the debt ceiling is not raised?

For those of you who feel we have more time beyond August 2nd to deal with this issue, the government reached its legal borrowing limit last May and has been taking extraordinary steps to keep the country from defaulting.

If the debt ceiling is not raised, beginning August 3rd the daily shortfall will be approximately $20 billion.

The US Treasury would not be able to pay about 45% of the debt it is obligated to pay each month.

With an estimated $12 billion in daily revenues and $32 billion in previously committed spending by Democrats and Republicans, the following big ticket items will be on the chopping block:

$23 billion Social Security (you may not get your August 3rd check)
$2.2 billion Medicare/Medicaid (doctors/hospitals will not be paid)
$1.8 billion Education (mostly for Special Education/special needs)
$1.5 billion Other
$1.4 billion Defense contractors/vendors
$1.4 billion Safety net
$500 million Federal salaries/benefits
$100 million IRS refunds (to businesses)
$100 million Veteran’s Affairs


To make sure the US Treasury has enough money to make a $29 billion interest payment on Aug. 15, the government would have to suspend approximately 45% of federal spending.

The US Treasury makes 80 million payments each month.

What effect would pulling that kind of money out of the economy have?

Michele Bachmann says it’s not a problem.

T, you are so right with this post. The Tea Party is insane. Protect the rich, no matter what the cost to the rest of us.

I never thought I'd see the day when the Democrats in Washington would agree to 10 dollars in spending cuts for every 1 dollar in new revenue.

The Tea Party (formerly the Republican Party) DOES NOT CARE about this country. Their only goal is to defeat the President no matter the cost.