Boehner: GET REAL!
The Market Ticker - Commentary on The Capital Markets
Logging in or registering will improve your experience here
Main Navigation
Sarah's Resources You Should See
Full-Text Search & Archives
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. For investment, legal or other professional advice specific to your situation contact a licensed professional in your jurisdiction.


The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be sent unmodified to lawmakers via print or electronic means or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media, to republish full articles, or for any commercial use (which includes any site where advertising is displayed.)

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Considering sending spam? Read this first.

2011-07-27 19:00 by Karl Denninger
in Editorial , 19 references Ignore this thread
Boehner: GET REAL!

Now this is funny..... 

Posted by Speaker Boehner's Press Office on July 27, 2011

The Congressional Budget Office (CBO) has released its analysis of the revised Budget Control Act of 2011 today, and CBOs analysis confirms that the spending cuts are greater than the debt hike affirming that the House GOP bill meets the critical test House Republicans have said they will insist upon for any bill to raise the nations debt ceiling. Specifically, the CBO analysis confirms the Republican plan will:

  • Cut and cap spending by $917 billion over 10 years thats more than the $900 billion debt hike;
  • Cut $22 billion in spending for FY2012 and hold spending below FY2010 levels until FY2016;
  • Continue reducing discretionary spending each year compared to President Obamas budget (by $96 billion in 2012, $118 billion in 2013, $115 billion in 2014, $117 billion in 2015, and so on); and
  • Require Congress to draft proposals that produce reductions of at least $1.8 trillion that help protect programs like Medicare and Social Security from bankruptcy.

Republicans adjusted their spending cut bill after a lower-than-expected score from CBO. This updated analysis confirms what others are saying: the Republican plan changes the trajectory of spending and would keep the debt cutting process going. Unlike Senator Reids gimmick-filled plan, the Republican proposal includes real spending cuts and reforms that will restrain future spending and the spending cuts are larger than the debt limit increase.

This bill is far from perfect, but its a positive step forward that denies President the $2.4 trillion blank check that lets him continue his spending binge through the next election. Learn more about it here.

Uh huh.

Let's go through it, point-by-point.

  • Any spending "cut" projections 10 years out are a fantasy.  30 years of history says the tax increases (if any) come immediately, the cuts come never.  Go ask Bush 1 or Reagan, among others.

  • $22 billion is 1.3 percent of $1,700 billion in deficits.  This is otherwise called a bad joke.  Oh hell, let's just cut the crap - it's public fraud to call this a "cut."

  • Holding spending at 2010 levels is not a cut at all.  But you call it one.  This is the common fraudulent (outrageously so) accounting commonly done by a con man.  In this case, 535 con men and women in the properly-named CONgress.

  • Require CONgress to draft "proposals" to reduce spending by $1.8 trillion more?  And if you don't?  What's the penalty?

Oh, don't believe me that it's bullcrap and in fact includes no actual cuts

Never mind that the ever-optimistic CBO, which said we'd add approximately $9 trillion (and quite possibly more) in new debt over the next ten years, themselves says this will "save" 1/10th of that.  Maybe.


This is our outrageously-fraudulent "baseline" budgeting once again.  That is, the "savings" are not actual spending reductions, but instead are simply "holding it steady" (except for entitlements and wars, you see.)

What has this little ditty told us?  Simple: The odds have just gone up - a lot - that we're going to get an actual balanced budget.

Right here, right now.

Be ready for it.