Debt is a done deal, but peace truce already fades

Let us all rejoice. The deal is done, catastrophe averted. The US will go another 10 trillion dollars into debt. Hooray. Isn't our President wonderful! Ah, but wait, they created a debt commission. Their mandate, to see that the US goes 7.5 trillion dollars further into the hole. Wow, so terrific. That means instead of owing 27 trillion, we'll only owe 25 trillion. Amazing. And its all thanks to Obama and the Dems for holding the line on spending. Oh, but we should be sure to thank the Republicans for caving. It couldn't have happened if Boehner and a bunch of Republicans hadn't wimped out. Its just a great day for America!

Molenir -

Given the choice of financial disaster now vs. financial disaster later, I'll take later.

McConnell : " ... conceded that Republicans got only part of what they wanted in the deal, and he pointed to next year’s elections with control of the White House and Congress at stake as a chance to gain greater clout."

And you can be sure of one thing, the Republicans won't hesitate to push their economic agenda even if it brings the US economy to it's knees(and then still blame it all on Obama). It's only about pleasing their base and winning the Senate and the White House. That's the difference between Republicans and Democrats. Democrats would back off because they couldn't bring themselves to use such a ruthless strategy.

So, America averted a heart attack (sudden financial death) in favor of cancer (slow and lingering financial death). I think the Eurozone is also choosing "cancer".

Molenir, trust me, hyper-inflation will hit long before the next ten trillion, because America is being forced to print money to buy its own debt.

MolenirAug. 03, 2011 - 07:28AM JST Let us all rejoice. The deal is done, catastrophe averted.

There was never a danger of potential catastrophe. This was invented by the media. Deal was eminiment by 8/2. Nothing has really changed. Just a bunch of hot air in politics. Interest rate will remain about the same. If the decision was so difficult, the investors would've smelled the changes week ago and jumped the ship, but did not react with panic. They already knew it was a done deal. This was more of politics at worst.

sfjp330

Exactly.

Hollywood!

http://www.opednews.com/articles/The-Decline-and-Fall-of-th-by-paul-craig-roberts-110802-602.html

@molenir, You scare me. You think the problem is that repubs caved? Really the problem is that repubs still think they have the power. And maybe they do. Democrats actually want to save this country, not just wall street. So all the repubs have to do is stall long enough to force a conpromise because no action means death to all. They are gambling with the nation, betting the dems will fold. Because even if it all goes sour, they can blame obama.

If you were told you could choose: die today, or struggle until we find a cure. What would you do?

This has nothing to do with Democrats or Republicans.

Ignore the smoke screen and see what's happening.

The plan seems to be to get the country so deeply in debt that it will become a police state.

Hell, it's halfway there already.

With a military beefed up to fight terrorism (not) and the steel claws of censorship tightening around the internet, there is very little hope for the "Land of the Free."

johninnaha

This has nothing to do with Democrats or Republicans.

I see. It's August. New month, new conspiracy. Well then, let's have the name of the group behind 'the plan' .

My belief is that just the cost of servicing the debt is greatly more than the amount that is coming in,

Never fear, its not. Interest rates for the Fed are around like one percent or less. But still, the cost of the interest is about the same as a large federal program, which is TREMENDOUS waste.

Having done a lot of this math, not wanting to do it again, and being non-partisan (but finding Rs dangerous for their desire to attack what they see as a problem and Ds less dangerous for wanting to throw money at what they see as a problem) I believe that 5 years of no spending on anything but debt would mean the debt would be paid. But the chaos that would result would not be worth it. At the very least, core federal employees should be paid so as to keep them. Many a government program needs axed or downsized though.

If you look at the financial pages, you can see that they have been, and are still, jumping ship.

No surprise. Just by the virtue of this becoming an issue, now everybody knows that the U.S. is deep in debt, whereas it was basically unknown or downplayed before. I think both sides are enough to blame for making it an issue that both sides can be blamed for the recession we will suffer for it.

The confidence that comes with denial is now gone with the denial. We are deep in debt, everybody knows it, and only the extreme optomists will invest in America now.

Congratulations America. In one fell swoop you have ensured that your recession continues on for the next 18 to 24 months. What part of the word ECONOMICS don't you understand? It's no wonder the rest of the planet thinks you're MENTAL. Not the people, mind you, just the political & corporate leaders. Oops, oxymoron.. Political Leader!

Breitbart - I really have no idea whether there is any conspiracy or not or what to call it if there were one.

I just don't believe that we are being given the whole truth.

Of course, the real reason for "solving" the economic crisis by borrowing more money could be blatant stupidity.

What do you think?

Congratulations America. In one fell swoop you have ensured that your recession continues on for the next 18 to 24 months.

You make is sound like it was an accident!

Democrats actually want to save this country, not just wall street.

Gotcha, and you think, and no doubt they think that the only way to 'save' the country, is to continue to deficit spend. To spend more and more money, at what point is enough enough? Lets be realistic here. Democrats don't give a rats ass about the country. When they pull this crap, it becomes more then obvious. What they care about is being re-elected. They think that if they stave off the wolves a bit longer, they'll make it to, and through the next election. This naive short-term outlook has been killing America. It is certainly not helping it. And while this negative spiral began under Bush, lets remember, that the explosion in spending only occurred when the Dems gained control of congress. We were 7 trillion in the hole, now we're 15, and its only going to get worse. This 'grand compromise' essentially means we'll go another 10 trillion in the hole, and if the commission is as successful as they are mandated to be, then it will only be another 7.5. Thats 25 trillion dollars in debt as opposed to 27.

When will people finally wake up and realize, this is not sustainable. They are facing that reality in Europe, and we are only a few years behind. It won't be long until, the amount of money just to pay the interest on the debt, will be the largest single expenditure in the budget. You think the pain of fixing this is too much? The pain of waiting will be much, much worse. And the saddest part of this whole thing, is that if we spent the same amount as we are today, for the next 10 years, instead of increasing the spending every year, the budget would balance all on its own. Now thats whats truly pathetic. They can't even agree to simply spend the same amount. Instead they're arguing over how much to increase spending by, not how much to cut spending.

The only way to save the US is to fairly tax the rich and the corporations. And that's never going to happen.

I need a PROZAC!

And Gold, Silver and Mattress???? YES!

Paul Ryan to Obama:

Where's Your Budget, Mr. President?

MolenirAug. 03, 2011 - 07:08PM JST. When will people finally wake up and realize, this is not sustainable. They are facing that reality in Europe, and we are only a few years behind. It won't be long until, the amount of money just to pay the interest on the debt, will be the largest single expenditure in the budget.

You are right. The European debt crisis is worsening again, even with the European Union agreement for new bailout in Greece. Now the fear that Italy and Spain, two much larger economies, also may need a bailouts. This has sparked heavy selling of European stocks in recent days. The Italian market has been down over 25 percent since February. Most investors in the U.S. is looking past the budget situation. Even though the U.S. stock market has crumbled in the past two weeks, major U.S. indexes still are up sharply from their lows of last summer. It's not unusal for stocks to periodically drop 10-15 percent in a bull markets when bad news hits. More and more investors are realizing that there's no quick fix for U.S. economy. At least the debt ceiling agreement removes uncertainty over the markets.

The only way to save the US is to fairly tax the rich and the corporations. And that's never going to happen.

Stupid, naive, meaningless class warfare arguments. The Rich aren't wealthy enough to cover this amount of spending. And your idiotic 'fair' statement is likewise meaningless unless you define what fair is. How much is their 'fair share'? You'll note those who repeat this mantra, never bother to define it. Is the fair share 100% of their income? Or only 80%. The fact that the high income earners already pay almost all of the amount the government takes in, and that over half of the people pay no income taxes at all, is ignored by those who keep preaching the doctrine of class envy and greed. Regardless though, it doesn't get at the basic fact, that there simply isn't enough money to pay for what these idiots on both sides have agreed to.