The Demopublican party got its act together and abandoned the badly preformed show they´ve put up the latest week or so, and finally got an budget agreement on the table. The compromise, if approved by the House and Senate, would lower federal spending with about $2.4 trillion (at the very best and most positive way of looking at it) over the next decade.
Of course there were NO CUTS (!!) whatsoever, instead they are lowering future obligations. If they intended to spend $100 billion MORE on weapons the coming 10 years but now instead will only spend $80 billion MORE, they´ve now “cut it” by $20 billion...
This is fraud, this is lying, this is absolute madness.
Of course journalists are spinning this like they actually decided to make cuts.
They are lying to you!!
Even if, IF they actually had pulled out $2.4 trillion (AGAIN: Very positive number, the real number is more like $1 trillion) in cuts over the coming decade, so what? The current deficit is 1.500 trillion/year. Oh, let’s see. 2.4 divided over 10 years... uhm... what´s that again... Oh, I cannot understand math from the 5th grade...
So in fact this budget will mean that the deficit will grow!
Worse: This budget will increase spending – every year!
And horrifically: No cuts will be made before 2013!!
And horrendously: They are not bound by this agreement!!!
Rating agencies have said they both wanted to see immediate cuts and an intention for bringing things back to order in the near future. Nothing of this was meet, so the rating agencies should downgrade the U.S. based on this Demopublican agreement. They probably won´t though... but let´s see.
Here´s what you need to know:
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.3 percent in the second quarter of 2011, (that is, from the first quarter to the second quarter), according to the "advance" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 0.4 percent.
At the same The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.2 percent in the second quarter, compared with an increase of 4.0 percent in the first Excluding food and energy prices.
Or to put in other words this means:
1) the American consumer who make up 75% of the U.S. economy and close to 15% of the world’s economy is very fast losing purchasing power (and have been for quite some time).
2) The 10-12% of deficit spending that the U.S. government is borrowing/printing to cover up the lying is the only thing keeping GDP above depression levels - and that has been the case for several years
Or to put this in yet other words:
The U.S. is broke and in a depression since years back and will either default via demopublican decision or via a market decision, and this will likely happen sooner rather than later. You can pray that they don´t go to the printing press first... if that happens we´re looking towards an inflationary depression and that ladies and gentlemen will mean the end of life as we know it.
And you journalists out there, please, please do your God damn jobs! Is it so hard to tell the truth? Is it so hard to actually work for a living? You should be warning people. The Greatest Depression is coming, nothing can stop that now and you should be fuckin telling people!