The TEA PARTY Has Won Lock, Stock And Barrel
The web is flashed with the news that Barack Obama has declared, a compromise has been reached and a debt ceiling upward revision deal is imminent.
Barak Obama has declared victory with defeat written large all over him.
The Debt Ceiling Theater is finally ending, thank God! It was apparent from the beginning that Obama and his team was no match for a handful of Tea party leaders, and it was hurting to see how the most powerful man was being beaten into pulp. Thanks God the end is nigh—just a few voting formality away!
The deal that has been struck late Sunday, in Obama’s own words, would slush “domestic spending to percentage levels not seen in more than 50 years.” Notwithstanding, the Tea Party-backed Republican first-term members of the House are not happy yet, they are still demanding their pound of flesh.
According to the Democrats, if this deal passes it would prevent a downgrade of America's credit rating—what is the deal?
No REVENUE HIKES, only spending CUTS, CUTS, and CUTS—initially about $1 trillion will be cut from U.S. spending, and then another big cuts in government spending, phased in over a decade. Thousands of programs will be cut, Park Service, IRS, Labor Department, none will be spared.
A discretionary savings of $1.8 trillion or more will be allowed to target benefit programs, such as Medicare and Social Security. Social Security, as well as the Medicaid and food stamp programs although would be exempt from the automatic cuts, payments to doctors, nursing homes and other Medicare providers could be trimmed, and also subsidies to insurance companies that provide alternative to Medicare.
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With these cuts, our path to “Icelanding” will have sure footing. Unemployment will go up, and economy will tank further. There would be bloodbath of the incumbents in November, 2012.