Monday, August 1, 2011

The Debt Deal is done

Here is the low-down of all that negotiating:

Sen. Lindsey Graham had it right Sunday. “It’s a $3 trillion package that will allow $7 trillion to be added to the deficit over the next decade,” he said, instead of $10 trillion. “We’re no longer running toward oblivion, we’re walking toward it.”

Source: The debt deal:  Disaster averted, decline straight ahead - The Washington Post

It took all that work to do that? If you believe that government spending can ignite an economy, this deal is the wrong move, albeit cutting 6% from federal spending is more like a rounding error.

If you believe the government spending is in any way an unproductive endeavor, or that our debt is threatening to swallow us whole, this deal is akin to lipstick on a pig. By now the debt interest consumes more money than the Defense Department. We didn't cut, we just slowed down the increased borrowing a little.

Egads, we are in trouble.

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