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The CBO Says We’re Screwed

The most recent Congressional Budget Office (CBO) report on the federal government’s dire fiscal situation indicates that the United States is headed for a “fiscal cliff” and everyone in the Washington establishment and elite media seem to be studiously ignoring the warning.

CBO Director ElmendorfPerhaps that is because the CBO report clearly shoots-down their preferred alternative for handling the situation.

The standard Washington business-as-usual answer to calls for spending cuts to stave-off our country’s looming fiscal disaster is to say we need a “balanced approach” of spending cuts and tax increases.

Liberals, from President Barack Obama to the most obscure Democratic Congressmen, have used that line whenever they are confronted with the results of the spending spree they began when Nancy Pelosi became Speaker in 2007.

Behind closed doors, establishment Republicans say they are willing to accept some tax increases as long as they are “balanced” by even greater spending cuts.

The problem the CBO report presents for those advocating the so-called “balanced approach” is it projects that the economy would shrink by 1.3 percent in the first half of next year if the combination of higher tax rates and more than $100 billion in automatic cuts to the Pentagon and domestic agencies goes into effect in January of 2013.

In other words, if Congress follows the “balanced approach” we are headed for another recession.

One of the main issues that brought the Tea Party into being is the Washington (Republican and Democratic) establishment’s unsustainable spending.

The CBO reports that since January 2009, we have seen a 47 percent increase in our debt, and for the last three years the country has overspent more than $1 trillion every year.

Despite the “draconian cuts” and “historic” reductions in spending Congress claims, the CBO estimates that the federal government will overspend by another $1.2 trillion this year.

America cannot borrow or tax our way to prosperity. Since day one, Tea Partiers have been saying that the nation’s economic future relies on getting our debt under control by cutting spending. The latest CBO report shows they are right. Unless we get rid of the business-as-usual insiders of both political parties -- who are willing to risk another recession to maintain their grip on power -- the rest of us are screwed.

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Too Late

 Too late already, the pols on both sides are fossil-brains and have a death-grip on the controls of this country.  We as individuals and with our families must realize the iceberg is less than 37 seconds away and rig for the collision.

I read the report

It says that if the spending cuts are made the huge drop in government spending will cause the economy to go off a cliff.  There is no way to spin it to say that they are saying that trying to end the deficit right now is a good idea.  It does not support either the tax increases or the deficit reductions.  This is a straw man anyway because few people are talking about ending the tax reductions for the majority of people.  It is unlikely that the automatic cuts will take place and if you look at Romney's website he supports a huge increase in Federal spending.  He wants to increase the spending on defense 4% of GDP which is the same as Obama's stimulus package every year.  It is right there on his website with no mention of how it will be paid for.  Maybe he plans to sell off a few states and outsource the court system to India. 

typical, typical, typical

I can't help but believe that the main focus of a large faction of the Democratic Party have intentionally been working towards the USA's financial collapse. Even the facts of a single family budget, or a small business should be the exact example that the government should operate on. Those economists who cite examples of spending and taxing and budgeting throughout history, need to be punched in the mouth. Logic of spending levels never exceeding your income levels will always work to everyone's advantage.

It really is coming down to working out a solution for those demographics who are within the working age, but are receiving more than they are contributing have had their run. If you cannot suppport yourself, you sure as heck cannot support those who are unwilling to help themselves. (Just upset over facing the facts)

We can't count on Congress, only the Constitution

The special interests are too deeply entrenched to ever hope that Congress alone will reduce the federal leviathan.  Only a return of the federal government to its original limited functions and powers under the Constitution will save us from the disaster predicted by the CBO.  Given the massive distortions of the Constitution by the Supreme Court over the last 75 years which have allowed that unconstitutional expansion of the federal government, only constitutional amendments restating and re-affirming those original limits will restore our Republic.  See http://www.timelyrenewed.com

Huge Budget Cuts.

The primary problem with these huge budget cuts is they are made from the New Spending Plan, not the Present or Old Spending Plan.

Here is how it works.   I was planning to spend $3 Trillion, but I decided to cut the defecit by only spending $1.5 Trillion.  So, I just used the 1.5 Trillion I saved to offset the 1.5 Trillion I spent.  Now I'll just raise taxes and use that to either reduce the defecit, or maybe to reward the government employees with bonuses and conferences in Vegas or Hawaii.

The only Candidate left to do that is Ron Paul

Ron Paul is the only candidate left in the GOP race that will actually balance the budget in a single term in office (he offers a way to balance the budget in just 3 years). 

Sadly the GOP is going to put their weight behind Mittens McFlopneybama.