The Budget Control Act Spending Reductions Have Vaporized

CrownThomas's picture

Back in August of last year, Congress passed the Budget Control Act of 2011. This raised the debt ceiling $2.1 Trillion dollars to ~$16.4 Trillion dollars. As Tyler points out, Obama will more than likely breach the new debt ceiling this year. That's not shocking, especially not to ZH readers.

And while this video isn't necessarily shocking either, it is rather maddening to see how humorous OMB Director Jeffrey Zients thinks it is to not adhere to any laws, let alone promises when putting together the Administration's newest budget proposal.

If you recall, the Budget Control Act said that if the "super committee" wasn't able to come to an agreement, there would be an automatic spending cut in the amount of $1.2 Trillion dollars over the next ten years. Well, clearly the super committee fell flat on it's ass, and therefore we should see $1.2 Trillion in debt reduction when reviewing the new budget proposal -- right? Obviously this wasn't the case. Perhaps the law has "vaporized", similar to the missing MF Global funds (and the middle class).

When asked about this at a budget committee hearing today, Zients just smirked and refused to answer the very simple question: "Does your plan spend more money over the next ten years, than the agreement in current law"

Sorry folks, we're fresh out of vomit bags, you'll have to improvise.









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homer8043's picture

Let's see Fictious Number call it FN.

FN - $1.2T = FN. Add deception, BS, payroll tax cuts, Bernanke to FN, get a new FN. All hail the FN.

When the public can't do basic math, more less finance, and doesn't pay attention this actually works. Add in that there's an election to win and retirement benefits aof all stripes are the square root of -1 in a couple years anyway the crooks may as well pumps as hard as possible now.

All as we delay, not avoid, the inevitable depression and push our luck with worse.

gaoptimize's picture

A missed opportunity.  This is one of those moments where Senator Sessions could have called attention to this fiscal disaster by calling Mr. Zients a "deceitful, dissembling, and defiant asshole recklessly putting the nation's finances at risk" to his face.  The breach in decorum would have made the MSM and made Senator Sessions a hero of the good people and clearly drawn battle lines.

marathonman's picture

Really?  'Honorable' J. Zients?  As believable as 'Honorable' J. Corzine.


Catullus's picture

Republicans, this is why you shouldn't have made a deal and should have let them shut down the government then.  Honestly, congressional republicans are playing checkers when the democrats are playing chess.  You're idiots.

Bob's picture

But today's announcement finally gives downtrodden republicans everywhere something to wholeheartedly embrace:

Are you kidding's picture

Nah man, they know what they're doing. We run out of money in Aug or Sept, all hell breaks loose, government shuts down...all blamed on BO. They're playing their hand OK.

nmewn's picture

“Today, I’m pledging to cut the deficit we inherited in half by the end of my first term in office. This will not be easy. It will require us to make difficult decisions and face challenges we’ve long neglected. But I refuse to leave our children with a debt that they cannot repay — and that means taking responsibility right now, in this administration, for getting our spending under control.”

Obama, 23 Feb. 2009

Now, run along, eat your peas and someone get me a tee time.

Forgiven's picture

Let's deconstruct that from politicianese to plain English.

"Today" = "Today,"

"I'm pledging" = "I will continue to lie about"

"to cut" = "moderately increasing"

"the deficit" = "payout to my patrons"

"we inherited" = "stolen from the taxpayers"

"in half" = "by a factor of two"

"by the end of my first term in office" = "and will increase it by more when I assume my second term."


So as you can see, he has been true to his words.  It's just a question of what language is being spoken.

ceilidh_trail's picture

Thanks for ruining my breakfast. I was sooooo looking forward to my peas and granola souffle. As you said, difficult decision= which club to use; challenge= getting in the ice cream and pizza before moochelle gets home...

Element's picture

But can we get a precise definition of, "right now, in this administration" articulated?

Buba said, "I did not have sexual relations with that woman", but that does not mean that he didn't send a 'probe' to 'Venus' because the blue-dress encrusted with a rather durable Venus jism attests that such a 'program' did in fact exist. (there are probably videos ... and one day ... utube ... and frankly I wouldn't mind having a gander)

Maybe we just can't understand the ins and outs of such complex matters of State.



Element's picture

Oh yeah, ... I'm fairly sure the ratings circle-jerk is sort of expecting a NET decrease in spending or else they will do something or other.

I'm sure it's nothing to worry about. 

ZIRP is already locked-in ... right? ...


awaiting the next Nanex .gif

lolmao500's picture

Vaporized, the hipster word for 2012.

Element's picture

Well, clearly the super committee fell flat on it's ass, and therefore we should see $1.2 Trillion in debt reduction when reviewing the new budget proposal -- right?


Yes, but almost all of it will occur in year ten fortunately.

foofoojin's picture

this in the same day Italy defunds the 2020 Olympic project.  they saved 12.5 Billion in one day. we need a hundred of these or ten a year and will be fine.

AUD's picture

When asked about this at a budget committee hearing today, Zients just smirked and refused to answer the very simple question

He probably doesn't know the answer & while gold moves up just a few USD on the news, he doesn't have to.

alien-IQ's picture

I wish I hadn't seen that.

Late night rage never ends well.

Zero Govt's picture

read the inane (socialist) dribble of Paul Krugman in the NY Times or Martin Wolf at the FT'll be hard pressed to stay awake after 3 paragraphs, by para 5 you're fuking comatose

carbonmutant's picture

When do we get a Media that reports this fraud?

wonderatitall's picture

these are democrats which is pig latin for lying thieves and obama is a democrat and BLACK. end of story. move along looky loos

GlobalCtzn's picture

As opposed to those truth-telling altruistic Republicans. So, you are one of those fools still blindly caught up that Dem/GOP false dichotomy eh? And a racist to boot. Your parents must be so proud!

carbonmutant's picture

We need a Cable Channel...

azusgm's picture

I hope his children watch this and understand what a lying piece of trash Daddy is and tell him so.

eatthebanksters's picture

It is truly amazing to me that these guys can sit there and look the world straight in the eye and lie!

DollarMenu's picture

It is their job to lie.

The better they lie, the further they advance.

ShankyS's picture

Noting surprises me anymore living in the corrupt crony elite capitalist fascist states of amerika. Whoops, that sounded like a terrorist. My bad. Let me correct that. Obama rocks and he's a freaking god! 4 more years, better yet, let him have the office perpetually! <sarc>


Nice find CT. 

DavosSherman's picture

Mister?  I could think of far better words.

Moe Howard's picture

Congress is as effective as the Senate in Rome after Caesar.

Roland99's picture

It's time for a vote of no confidence in Chancellor Valorum


Downtoolong's picture

Let’s face it, when you create a “Budget Control Act” which “Raises The Debt Ceiling”,  you’ve pretty much issued a self-contradicting, ergo worthless legal document to begin with. 

Catullus's picture

Yep.  Which is why a real opposition party would have never agreed with it. 

You're a piece of shit, Eric Cantor. 

Everyman's picture

This is why we are in this mess, liars and scynophants like this POS.

Bear's picture

This guy (like most of the Administration) just drips with arrogance and condescension. If this guy doesn’t think he is the smartest man in the room and Sessions is a backwater hick, I’ll eat my hat. 

Raging Debate's picture

Bear, this is the same spirit that sends innocents to their imprisonment and death. The saying Bull in a China shop comes to mind. Other countries will not be so kind when treated that way. Good luck and God bless to people of all nations. We're going to need grace and luck to minimize the casualty rate and in that regard, it very well may be mankind easily breaks old records. Will justice be served?

rufusbird's picture

Did I hear him correctly? I heard, "We don't need no stinkin Congressional Budgets"

atomicwasted's picture

>>If this guy doesn’t think he is the smartest man in the room and Sessions is a backwater hick<<

The two are not mutually exclusive.

The Navigator's picture

It's gonna be all Greek for everyone because of this lying piece of shit and those cocksuckers like him driving the US over the cliff.

Al Gorerhythm's picture

Not only the US will be affected. The world will be tagging along for the ride on this one.

CH1's picture

The narcicism evidently runs top-down.

Ah well, politicians will be evil.

mt paul's picture

an honest budget

submitted by thieves ...

disabledvet's picture

Ooooo. How exciting! Let me guess..."AND IT'S ALL GOING TO THOSE WELFARE MOM'S TOO!"


nickt1y's picture

Coporate wealth is Govenment driven. Feeding at the tax trough with special loopholes "incentives", bailouts, etc. Kill Fascism by cleaning up the tax code and insane spending. BTW we are all Fascists now.

JW n FL's picture



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Bear's picture

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