The Bipartisan Debt Deal Fact Sheet: A "Victory" For The Republicans, The Democrats And, Of Course, The White House

Tyler Durden's picture

Hot off the presses, here is the White House's very own "debt deal" fact sheet, which is apparently a "win for the economy and budget discipline." Which is great since we already know it is a win for the GOP and the Democrats. In other words, the only thing better than a Win-Win, is a Win-Win-Win... in which the only loser, of course, is America. We caution readers on high blood pressure medication, on blood thinners, those on dialysis, and those prone to incontinence or murderous acts of rage to please skip this post.

From the White House's spin factory:

Bipartisan Debt Deal: A Win for the Economy and Budget Discipline
  • Removes the cloud of uncertainty over our economy at this critical time, by ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain;
  • Locks in a down payment on significant deficit reduction, with savings from both domestic and Pentagon spending, and is designed to protect crucial investments like aid for college students;
  • Establishes a bipartisan process to seek a balanced approach to larger deficit reduction through entitlement and tax reform;
  • Deploys an enforcement mechanism that gives all sides an incentive to reach bipartisan compromise on historic deficit reduction, while protecting Social Security, Medicare beneficiaries and low-income programs;
  • Stays true to the President’s commitment to shared sacrifice by preventing the middle class, seniors and those who are most vulnerable from shouldering the burden of deficit reduction. The President did not agree to any entitlement reforms outside of the context of a bipartisan committee process where tax reform will be on the table and the President will insist on shared sacrifice from the most well-off and those with the most indefensible tax breaks. 
Mechanics of the Debt Deal
  • Immediately enacted 10-year discretionary spending caps generating nearly $1 trillion in deficit reduction; balanced between defense and non-defense spending.
  • President authorized to increase the debt limit by at least $2.1 trillion, eliminating the need for further increases until 2013.   
  • Bipartisan committee process tasked with identifying an additional $1.5 trillion in deficit reduction, including from entitlement and tax reform. Committee is required to report legislation by November 23, 2011, which receives fast-track protections. Congress is required to vote on Committee recommendations by December 23, 2011.
  • Enforcement mechanism established to force all parties – Republican and Democrat – to agree to balanced deficit reduction. If Committee fails, enforcement mechanism will trigger spending reductions beginning in 2013 – split 50/50 between domestic and defense spending. Enforcement protects Social Security, Medicare beneficiaries, and low-income programs from any cuts.     
  • Deal Removes Cloud of Uncertainty Until 2013, Eliminating Key Headwind on the Economy: Independent analysts, economists, and ratings agencies have all made clear that a short-term debt limit increase would create unacceptable economic uncertainty by risking default again within only a matter of months and as S&P stated, increase the chance of a downgrade. By ensuring a debt limit increase of at least $2.1 trillion, this deal removes the specter of default, providing important certainty to our economy at a fragile moment. 
  • Mechanism to Ensure Further Deficit Reduction is Designed to Phase-In Beginning in 2013 to Avoid Harming the Recovery: The deal includes a mechanism to ensure additional deficit reduction, consistent with the economic recovery. The enforcement mechanism would not be made effective until 2013, avoiding any immediate contraction that could harm the recovery. And savings from the down payment will be enacted over 10 years, consistent with supporting the economic recovery.
  • More than $900 Billion in Savings over 10 Years By Capping Discretionary Spending: The deal includes caps on discretionary spending that will produce more than $900 billion in savings over the next 10 years compared to the CBO March baseline, even as it protects core investments from deep and economically damaging cuts. 
  • Includes Savings of $350 Billion from the Base Defense Budget – the First Defense Cut Since the 1990s: The deal puts us on track to cut $350 billion from the defense budget over 10 years. These reductions will be implemented based on the outcome of a review of our missions, roles, and capabilities that will reflect the President’s commitment to protecting our national security. 
  • Reduces Domestic Discretionary Spending to the Lowest Level Since Eisenhower: These discretionary caps will put us on track to reduce non-defense discretionary spending to its lowest level since Dwight Eisenhower was President. 
  • Includes Funding to Protect the President’s Historic Investment in Pell Grants: Since taking office, the President has increased the maximum Pell award by $819 to a maximum award $5,550, helping over 9 million students pay for college tuition bills. The deal provides specific protection in the discretionary budget to ensure that the there will be sufficient funding for the President’s historic investment in Pell Grants without undermining other critical investments. 
  • The Deal Locks in a Process to Enact $1.5 Trillion in Additional Deficit Reduction Through a Bipartisan, Bicameral Congressional Committee: The deal creates a bipartisan, bicameral Congressional Committee that is charged with enacting $1.5 trillion in additional deficit reduction by the end of the year. This Committee will work without the looming specter of default, ensuring time to carefully consider essential reforms without the disruption and brinksmanship of the past few months. 
  • This Committee is Empowered Beyond Previous Bipartisan Attempts at Deficit Reduction: Any recommendation of the Committee would be given fast-track privilege in the House and Senate, assuring it of an up or down vote and preventing some from using procedural gimmicks to block action.
  • To Meet This Target, the Committee Will Consider Responsible Entitlement and Tax Reform. This means putting all the priorities of both parties on the table – including both entitlement reform and revenue-raising tax reform. 
  • The Deal Includes An Automatic Sequester to Ensure That At Least $1.2 Trillion in Deficit Reduction Is Achieved By 2013 Beyond the Discretionary Caps: The deal includes an automatic sequester on certain spending programs to ensure that—between the Committee and the trigger—we at least put in place an additional $1.2 trillion in deficit reduction by 2013. 
  • Consistent With Past Practice, Sequester Would Be Divided Equally Between Defense and Non-Defense Programs and Exempt Social Security, Medicaid, and Low-Income Programs: Consistent with the bipartisan precedents established in the 1980s and 1990s, the sequester would be divided equally between defense and non-defense program, and it would exempt Social Security, Medicaid, unemployment insurance, programs for low-income families, and civilian and military retirement. Likewise, any cuts to Medicare would be capped and limited to the provider side.
  • Sequester Would Provide a Strong Incentive for Both Sides to Come to the Table:  If the fiscal committee took no action, the deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education.  That outcome would be unacceptable to many Republicans and Democrats alike – creating pressure for a bipartisan agreement without requiring the threat of a default with unthinkable consequences for our economy. 
  • The Deal Sets the Stage for Balanced Deficit Reduction, Consistent with the President’s Values: The deal is designed to achieve balanced deficit reduction, consistent with the values the President articulated in his April Fiscal Framework. The discretionary savings are spread between both domestic and defense spending. And the President will demand that the Committee pursue a balanced deficit reduction package, where any entitlement reforms are coupled with revenue-raising tax reform that asks for the most fortunate Americans to sacrifice.  
  • The Enforcement Mechanism Complements the Forcing Event Already In Law – the Expiration of the Bush Tax Cuts – To Create Pressure for a Balanced Deal: The Bush tax cuts expire as of 1/1/2013, the same date that the spending sequester would go into effect. These two events together will force balanced deficit reduction. Absent a balanced deal, it would enable the President to use his veto pen to ensure nearly $1 trillion in additional deficit reduction by not extending the high-income tax cuts.
  • In Securing this Bipartisan Deal, the President Rejected Proposals that Would Have Placed the Sole Burden of Deficit Reduction on Low-Income or Middle-Class Families: The President stood firmly against proposals that would have placed the sole burden of deficit reduction on lower-income and middle-class families. This includes not only proposals in the House Republican Budget that would have undermined the core commitments of Medicare to our seniors and forced tens of millions of low-income Americans to go without health insurance, but also enforcement mechanisms that would have forced automatic cuts to low-income programs. The enforcement mechanism in the deal exempts Social Security, Medicaid, Medicare benefits, unemployment insurance, programs for low-income families, and civilian and military retirement.

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Mr Lennon Hendrix's picture

"Victory, bitchez!"

-Richard Millhouse Nixon

Vic Vinegar's picture

Thanks for the laugh before bed...that was really nice.

I spent some time volunteering at the Richard Nixon Library because I have a soft-spot in my heart for the man.  A lot of people here think JFK was the last-best chance we had, but I say RN really tried to do right.  It's just that by the time he got in there, shit was too fucked up to fix.

Temporalist's picture

You must be licking the glue off the book bindings in that library you volunteer at.

Bananamerican's picture

"RN really tried to do right"

yup. One "enemy" at a time...

Vic Vinegar's picture

How do you think you, I or Ron Paul would do if we found ourselves in that hot-pot?  

Wait, don't answer that question, because none of those things are going to happen.  

Have a nice night, Bananamerican.

Bananamerican's picture

I think you would probably suck...

Ron Paul would be fine...

but i would kick absolute ASS!

"Bananamerican 2012...Rope and Range"

Vic Vinegar's picture

If I could, I'd vote the genesis of this conversation - Mr. Lennon Hendrix - to be benevolent dictator of the universe.  Sadly that's not going to happen :-(

Yeah, I'd probably suck.  I'd just be in it for the pussy.

A.W.E.S.O.M.-O 4000's picture

And as everybody knows Nixon got laid like a motherfucker!

Ghordius's picture

Skunk "Le Phew"? Is it you, DSK?  ;-)

optimator's picture

Yeah, I remember that sex crazed Nixon.  He wouldn't do a thing with out kissingher.

Ra-Marduk's picture

Vic Sour Vinegar, you my fried are a baffoon. The best thing about your posts is I get to look at your avatar. I would like a piece of that.

Vic Vinegar's picture

Replying to myself because I am talking to Tyler

Tyler - this is your website, do with it what you wish.  I thank you for not kicking me out just as I thank you for not coming down to where I work and knocking the dick out of my mouth.

But look at this - I open myself up on the Richard Nixon comment and am sitting at a +3 to -11.  Why should I not fuck with these other peoples' shit?

Anyhow, I have no more answers than the next guy.  

Here's a genuinely good tune for all you spacemonkeys.  Goodnight and goodluck to all of you.

Vic Vinegar's picture

I will log off from my computer tonight sitting at +3 to -13.  

I guess the one takeaway we can all have from this site is that human beings love clicking on red and green arrows to express their passions.  So it goes.

LeBalance's picture

lol, Tricky Dicky was Prescott's picked "boy."  Another Bush in the White House.

A Man without Qualities's picture

The problem for many people on this site is that it was Nixon's decision to finally end all links between the Dollar and gold that guaranteed the death of the Dollar (though it made a lot of corporations very rich.)  Add to that, Nixon's distractions allowed the likes of Kissinger to turn South East Asia into his own personal game of Risk, leading to hundreds of thousands of pointless deaths on all sides and in countries where the US was never officially "there".

In my personal opinion, Carter tried to do what he thought right - he was certainly the last leader to try to speak to the people as adults, but he was crucified for suggesting there was a limit to America's wealth.... 


Ghordius's picture

Nixon, in his way, "saved" the Dollar. He took a logical conclusion, i.e. that the gold reserves were not sufficient to fight that much war.

Carter "blinked". I wonder how Bush or Obama would have handled the hostage affair? Many hate him for "showing weakness".

At the end, it all comes down to what the electorate feels and wants.

War against Terror? Here, money. War against Drugs? Here, more money. War against Poverty? Here, money! War against any losses in the Stock Market and Banks? Here, humungus amounts of money. War against High Prices at the Pump Station? ...

Optimusprime's picture

Excuse me--"the electorate" was overwhelmingly against covering losses in the Stock Market and Banks.


An argument could be made that what "the electorate" wants is not important--the point of our fascinating "political process" is to pretend to offer "choice" to the electorate (via representatives of course) that has been narrowed down to alternatives that manage to miss the point of what the electorate actually wants.  What truly matters is what the banks, the corporations, the MIC, etc., want.  


Only because our elites themselves have differences of timing, emphasis, and opinion about the best ways to maintain themselves is there any "debate" at all.  "The electorate" is just along for the ride. 


The whole point of the (pre-Koch bros.) Tea Party is to actually inject "electorate" input into the political process.  It may indeed be naive, even Quixotic.  But lovable, IMO.

Incubus's picture

Say what the fuck you want.  When you're capable of saying whatever the hell you want--without regard for any asshole(s) who carry/carries relative social weight in stupid ass blogging circles--then you'll be "free."



The problem with humanity is that almost everyone is too concerned about the opinions of other people: people are shit, so are their opinions, and whatever the fuck else they esteem. Look at society falling apart--and you'll trust yourself to place any degree of worth on the very products of this social system?



The Third Man's picture

What a laughingstock we must be to the rest of the world.

TruthInSunshine's picture

What a laughingstock we must be to the rest of the world.

The Ponzinomics, fractional reserve, fiatski-laden, toxic debt infused, ebola infested balance sheet economies of our planet are more the rule than the exception.

One thing is for sure, however, amongst every nation that is branded with the long arm of the Red Shield:

Austerity is just another word for central planning, whereby the productive class is sucked dry by government, so that the cronies around the crony capitalism/kleptocratic roundtable can suckle at the taxpayer teat.

This will only worsen what is now becoming our economic depression and hasten the demise of the Ponzi, however, and I had always maintained that the productive members of the middle class and upper middle class would have to feel extreme pain before they did anything to educate themselves as to how the bankers own this government, literally (this is not taught in American Educational Textbooks), and how their effort, blood, sweat and tears is being literally stolen from them, in order to nurse the very low and very high extremes of society.

2008 marked the true beginning in the final phase of the new Great Train Robbery, whereby the thug politicians managed to maintain support for the welfare class (now 3rd and 4th generation who don't know of any other form of subsistence), and dramatically increased transfer payments extracted from the meaty center of the (now shrinking) middle and upper middle class, in order to absolutely plow those monies into the hands of the do nothing, shape shifters of Wall Street and the banks, which have received and will now continue to receive an aggregate sum of 'free and risk free' money in an amount that would make even despots and Robber Barons blush with embarassment.

Bring on the full depression, because economic pain is the only thing that will cause the necessary revolt that will forge the interest, determination and willingness to act on the part of the middle and upper middle class (whom the parasites feed off of) that will allow for a culling of the treasonous politicians that sold the nation out.

America is deathly ill due to a now incurable parasitic infestation. The host is near death. This 2008 to 20xx? process of subsidization of the banks and Wall Street via taxpayers shakedowns is the event that takes us to the Great Reset.


Mr Lennon Hendrix's picture

How did you get the transcrpit from yesterday's phone conversation between the banksters and Congressmen?


TruthInSunshine's picture

Banksters are the epitomne of whoredom.

Even the fattest amongst them will stoop to the most degrading and compromising acts for a buck or two.

This compulsive, moral depravity has been bred into them.

Ghordius's picture

The fact that they have achieved "critical mass" is what makes them "depraved".

If they had smaller, restricted banks which have to default if they make mistakes, then they would behave differently.

Remember the "Baby Bells"? Now, this could be a solution. Too big = too bad.

LeBalance's picture do you suppose they got into the Fraternity (SnB) that got them the seat in the Bank?

Muddy1's picture

When you say (they) "will stoop to the most degrading and compromising acts" I'm assuming you mean they will bend over, or drop to their knees, which ever it takes.

My dad ALWAYS said that the two lowest forms of life on the planet are bankers and lawyers.  After seeing what that bunch of lawyers in congress is trying to do to the US taxpayer on behalf of the bankers I sadly know he was right again.  I'm not sure the bankers are the epitome of whoredom.  At least a whore can give you a good time.  The bankers merely take our money, screw us over. and leave us with an STD resulting in poverty and serfdom. 

JR's picture

Well said, TruthInSunshine; a keeper.

Havana White's picture

A week ago the White House wouldn't have called this shared sacrifice.  Where, exactly is the sacrifice by the rich?  Not here.  Every Dem must vote against this, if he/she maintains any vestige of integrity.

Obama is a fraud, his campaign promises have become broken lies.  Of course I knew these things when he turned over the purse strings to Goldman Sachs.

When you see his re-election ads, understand they're paid for by Wall Street and big banking.

By the way, Obama, did you have any qualms at all about entertaining the Bahraini torturers at the White House a few weeks ago?  The ones you've given your full support and blessings? Oh, that's right... you yourself continue ordering torture.  Nice conscience there, too.

Ghordius's picture

Sorry, I disagree.
As far as I know, most of the rest of the world is scared shitless, and the new antics of US Politics don't help.
Your post has a few good examples of why there is much to fear:

1) "Red Shield" - this silly stuff distracts every discussion about banking reform. Focus on the NEXT "Great Train Robbery" from the TBTF Banks.
2) "Austerity" - also a word that stopped having any meaning, nowadays used to say "I'm increasing my debts by 15% only instead of 25%"

I agree with you on many general items. But you implicitly asked what the "rest of the world thinks". Well: fractional reserve, austerity, sensible budgets, etc., while not perfect, can function for a long time. Statistically, the USD was born as fiat in 1971, so it could last until 2041. Perhaps with a few zeros on new notes, ok. Still, this happened to a lot of countries, get over with it.
This whole kabuki theater was staged so that a fraction of the US population (let's say "Tea Party") could vent the pent up (righteous) anger. By threathening everyone and everything. And behaving as if the "End of the World" is the same as "USA having to face a difficult situation which will take several years to fix".
The Rest of the World has lots to fear from the (unnecessary) "Great Reset Death Wish Please let's have Heaven or Hell on Earth. NOW immediately, I'm not used to wait for anything." Spoiled Brat with Nukes?

Mentaliusanything's picture

Truth in Sunshine - Sir, with respect, they are not done with you yet.

You have no real GST (VAT) tax

You have no Carbon Tax

You have no congestion tax 

You have No Bank transaction taxes

Tolls on every street.

electronic monitoring

Touch tag.

Life monitoring and chipping

If fact I can name the whole death of the thousand cuts that you are yet to experience.

You were born to be not only sheared

But to bleed by the death by a thousand (salted) cuts.

You are only to be born, indoctrinated, then to live, consume and die.

It is to come my friend.

The Morlocks win

Ghordius's picture

Half of the above is already here in Europe. See how progressive we are?

Incubus's picture

The upper class likes to think they're in charge.  They'll push and push and push.  Eventually, though, they get bitchslapped and reminded of who's really in charge. 

Their existence rests entirely upon placating the masses.  The question is not IF but WHEN the heads will roll. 

Dental Floss Tycoon's picture

BTruthInSunshine said: Bring on the full depression, because economic pain is the only thing that will cause the necessary revolt that will forge the interest, determination and willingness to act on the part of the middle and upper middle class (whom the parasites feed off of) that will allow for a culling of the treasonous politicians that sold the nation out.

Be careful what you wish for.  Revolutionary outcomes are a mixed lot.  A few days ago in another article here Brandon Smith said: 

"Financial calamities are not dangerous because of the poverty they leave in their wake; they are dangerous because of the doors to malevolence that they leave open."

We are all in for a very interesting time.


BandGap's picture

Don't kid yourself, "the rest of the world" is looking to the US for their next move. Even lemmings have a lead lemming.

Let he who is without sin cast the first aspersion.

Incubus's picture

It usually takes a real dumbass to be willing enough to "lead." 


A fool thinks himself more capable than he really is. 

nedwardkelly's picture

My favorite part is how such a significant raise in the ceiling is what they credit with 'eliminating the need for further increases until 2013.' Ya know, if you actually slashed spending, you might be able to reduce the need for further increases indefinitely....

goldsaver's picture

and we are surprised because....

Moe Howard's picture

Any one of my three congresscritters that votes for this is in for a long fight at the ballot box.

Peter_Griffin's picture

3 winners and 1 loser.  Even if the one loser is 99% of American's, it's still a 75% w/l (winner/loser) ratio.  Bravo congress!!  Right?

YesWeKahn's picture

I think they really fell short. Obama should simply remove the limit, that would be a Winnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn.

AbandonShip's picture

Yeah, I got a question:  What do they mean by "at least" in this statement, "President authorized to increase the debt limit by at least $2.1 trillion" ?

How far down the road exactly is Obama authorized to kick that can?

Buck Johnson's picture

I take it back, this might pass.  Because essentially he promised everybody everything, as long as he doesn't have to make any hard decisions before the election.

Incubus's picture

I'm gonna pitch the idea for a "Pea Party" 


or Pee party, whichever... just mail me the check.

static's picture

Thank God that cloud of uncertainty has been that clear sirs?

Crystal Sir...Crystal!