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

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.     

1. REMOVING UNCERTAINTY TO SUPPORT THE AMERICAN ECONOMY

• 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.

2. A DOWNPAYMENT ON DEFICIT REDUCTION BY LOCKING IN HISTORIC SPENDING DISCIPLINE – BALANCED BETWEEN DOMESTIC AND PENTAGON SPENDING

• 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. 

3. ESTABLISHING A BIPARTISAN PROCESS TO ACHIEVE $1.5 TRILLION IN ADDITIONAL BALANCED DEFICIT REDUCTION BY THE END OF 2011

• 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. 

4. A STRONG ENFORCEMENT MECHANISM TO MAKE ALL SIDES COME TOGETHER

• 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. 

5. A BALANCED DEAL CONSISTENT WITH THE PRESIDENT’S COMMITMENT TO SHARED SACRIFICE

• 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.

Comments

[blackbaron]

Last-minute US deal prevents certain death of everybody in world

http://www.thedailymash.co.uk/news/business/last%11minute-us-deal-preven...

[Kina]

Another Bankster sponsored Punch & Judy show concludes.

We hope you enjoyed the show. That will be $2 trillion thanks. You can pay on the way out.

[Pay Day Today]

We're all on the way out now. Feet first.

[Sudden Debt]

GDP has topped out. GDP is dropping and spending will need to drop a lot more.

This debt target talk was just a excuse to get rid of big parts of medicare and SS. A how to help retired, sick and poor people meet their demise a bit faster to cut future costs a bit more faster.

It's also the "good news" before we talk about another QE3 which will help us get closer to the debt target faster than previously "thought".

Focus will now get back to Europe for a while and the US will yet again get it's fair share in this mess to.

also if you look to the spending graphs of the US, they'll never be able to make enough real savings according to the deficit and the cost tranches without really eliminating those like medicare and SS in order to save the militairy.

the US needs to cut spending at least 35% to make a chance. road to recovery....

I wonder how the individual states will soak up the austerity... How many state defaults will there be before the end of 2013?

This really is Obama's last chance to kickstart jobcreation. Let's see if the lawyer can bullshit his way out of that one!

MEMBERS OF THE JURY! I PRESENT YOU HERE A CLEAR CASE OF BULLSHIT!

[oldman]

Hey Sudden,

You have saved me---I'm having a bad time over this last news of the theater trick they played on me again.

Just as I close my last whine, I read:  "GDP has topped out. GDP is dropping and spending will need to drop a lot more."

And now, I'm laughing. Thanks for the humor, brother.

It may be even funnier than GDP topping out. How about world population topping out or, maybe, being in the first decline?

Imagine, how that will cheer all those banks holding onto their precious real estate that they have in the 'shadow inventory' waiting to unload it, or all those beautiful cars, ipads, computers, etc. of the planned obsolescence scheme---with a declining population and not enough wealth distribution to create buyers.

Yeah, and how are fewer of us with less money and more debt ever going to return to consumer heaven?

I'm lighter after reading your post because there is no way these morons can get this broken machine back in running order---the mofo is broke!

OK, I'm coming back to my nonviolent form already---I'm back to the do-nothing dude. I am just going to hang here and laugh at these dopes try to put ol' Humpty back together again, and I'm going to laugh at myself for having momentarily lost my sense of humor and faith in the universe------no loss/no gain. You see, I don't trade these markets, I'm a trend player and it is going my way for this next hundred years.

Thank you again, Sudden---nice being on the same team                   om

[Ghordius]

You do realize that after a few years of very strong inflation all real estate suddently looks shiny, don't you?

[oldman]

dear Ghordius,

You realize that a shrinking population with stinkingshrinkingdollars and  through the limit debt is going to play hell with any long term inflation, do you not?

Strong inflation when you have no money simply makes more of us outlaws---I mean, really, if I could borrow it, I would not take the risk of prison by stealing it, but---------------------------- you can figure the rest out.

No, my friend, I believe that there will be so many squatters in the most expensive properties that it will cost more to maintain and secure them and pay the taxes and coming assessments on that the banks will just let'em go. They can't make any money putting poor people in jail especially when 25% will be college grads with unpaid loans.

You see, this machine can no longer exist----like this oldman, its time has passed---an anachronism---The equation no longer functions because time has changed and survival will depend upon successful mutation to the new time and space.

Think Mayan Calendar-----the fucking world is not ending---we just make a new calendar like the Maya did at the end of the old---possibly the shrinking population will change its consciousness after ten thousand years of 'same-think'-----and the PERFECT CLIMATE for our species----Oh, man--I don't do drugs or drink or meat or fried foods----but, you know what? I'm hooked on the possibilities of the human race even though they have always disappointed me. This is fun shit, brother---this ain't about no fuckin' 'flation----

I gotta stop reading you guys' stuff---there's too much to get off on          om 

[Sudden Debt]

For the moment there is a flight to safety and not all people know anything about PM's but they do know real estate.

In some location everybody is running to the cheap real estate and sometimes even create a "short squeeze" in specific types of real estate like appartments.

It's called the brick in the stomage syndrome.

Over here in Belgium, I've now seen average 2 bedroom appartments being sold at 250K which bring in 600 euro rent a month... (downpayment is 1250 euro)

that's a 2.88% return on investment without costs linked to renting (repairs, renting requirements...)

Or rents need to go up X4 or real estate will drop 75% to make it worth wile because you need a 10% return to make it "profitable".

There is a vast oversupply which is being ignored and that's the bigger houses. These are dropping to prises at which you now buy a appartment. Once some smart guys start figureing that one out, appartments will drop like a stone and wipe out a lot of real estate value.

Banks are now even stopping giving loans to buy houses unless you can pay upfront at least 30% of the value. I would really like to see young people doing that with a average salary of 1400euro (age 22>30) and still have enough to live.

Real estate in going to go in shock here in Europe. It's only 1 year ahead of us.

Loan rates are going up, banks just stopped the "no downpayment loans" where you only pay the interest, wages aren't going up fast enough to allow people to afford these houses anymore...

Most of the real estate is owned by the babyboomers, and they have lost a sense of realty on the puchasing power of young people.

Young people are also missing out on a lot of jobs, some have been unemployed for 3 years now and won't be able to get back in, low wages.... the right mix for a young people's revolt.

[Ghordius]

.

[Ghordius]

.

[Ghordius]

Interesting, the way you put it. The only rent market I know a bit is the Swiss one years ago, where gross returns were around 5-7%, for prime locations even as low as 2%. The CHF, being "harder", gives less then 10% return. But of course now in Switzerland it's boom time for bricks (all credit fueled and also because since a few years it's possible to buy apartements instead of whole houses).

I had the impression that young people in Belgium shack up (so you have 2x 1400 EUR) and rent for about one third of their combined incomes, so 600-800 Euro is bearable. If all is sunshine. Supply and demand will shift as the demographics change further.

I agree, the big houses are going to drop further. Still, you agree that in any kind of strong inflation they do retain some part of their value - compared to paper?

[oldman]

We are such fools!

Military spending is how we got here and like the Soviets, it is the box they are burying us in

Doen't anyone 'get it'?

Well, soon you will------the military will give it to you for---what did my mama say-----oh, yeah----'it's for your own good, son."

Well, she lied to me, but at least she didn't put me $7,000 in debt each year

Thank you, mama, but now what do I do about this sea of assholes I'm swimming in?

I'm dead, boy---you'll have to work it out by yourself.

Thank you, mama                        om

[LikeClockwork]

Wait a sec, it hasn't been voted on and ratified yet. Some of you can still have the default you crave. 

Abandon ship.

[Mentaliusanything]

Hey clockwork - stop reading Mills and Boon novels.

The prince is a Frog and the frog owns you 

+ 2. whatever Trillion

[Kina]

We are waiting, the mothership is here.

All aboard. Lets go ferk up another planet.

http://images1.wikia.nocookie.net/__cb20100428170761/headhuntersholosuit...

[Ted K]

high blood pressure medication---NO

on blood thinners---NO

on dialysis---NO

prone to incontinence---NO

prone to murderous acts of rage---Damn, got me again!!!

[Mises knows best]

As predicted:

http://www.freemarketfan.com/2011/07/debt-ceiling-dog-and-pony-show.html

[Mentaliusanything]

I read two lines Copy and post the lines Here

 10-year discretionary spending caps 

I my you have all been done like a dinner

Australian for ........

Spun till your so giddy you throw up

(discretionary =

Left to or regulated by one's own discretion or judgment.

Bwahahahahahahahahaha

Read more: http://www.answers.com/topic/discretionary#ixzz1TloTLHwV

[LikeClockwork]

Could you be a little more obtuse Mental?

[pepperspray]

I want my Balanced Budget Amendment back

[rsnoble]

I personally don't have a problem with taxing the fuck out of the rich.  Pretty apparent after Bushs near decade in office that the 'trickle down' effect is finally in play around this shithole.  As far as im concerned any large business that doesn't want to hire US help can pack their shit and get the fuck out and won't be allowed to do business here.  Can it get any worse?  Open your damn eyes..........give them what they want and look what happens: endless hours at shit pay and all the cock you can suck.

And hands off so-called entitlements that have ate at my paychecks for over 20 years, that's my money and I want it and if any idiot says otherwise then I suggest you stop raiding the funds and acting like it's all the poors fault.

Furthermore it is unreal the level of chaos the US would be thrown into by ending all the so-called entitlements but no one seems to realize that.  The big companies have raped this country and you stupid motherfuckers are willing to push grandma off the cliff so you can make even more money?  Fuck you.

[rsnoble]

The truly funny part are all the poor (and people that are poor but consider themselves middle class) that have been convinced about how helping their fellow poor is somehow a bad idea.  And these ideas come from the gazillionaires.  I mean really......throw everyone off welfare, unemployment, any type of insurance---yes that's a great idea.  They're all lazy cause they can't seem to land one of the 1/5 ratio jobs.

Fact of the matter if the leaders would give up on Operation Global Gobble and concentrate on our own problems we could fix all this.  Throwing grandma under the bus so the likes of Halliburton can recieve billions to kill people is insane.  And now it seems like a good portion of the population is completely oblivious to all the bullshit the gov't does and has the crosshairs on the poor.  Pure fucking idiotic.

[YHC-FTSE]

+1 Yep.

[silvertrain]

by the time they replace the money they stole from the pensions to keep us alive and kicking I dont know if its going to make it to 2013 or not..Has the lybia bill came due yet?

[Catullus]

2013? Who are they kidding? Try September 2012

[overmedicatedun...]

they will be fighting over this debt problem that "only government" can solve for a long time..another perfect gov  fear project that keeps the pols in power. Any housewife or husband bill payer knows how to solve overspending..we spend less and pay off debt..only the Gov takes on More debt to solve too much debt. on to global warming taxes to save the climate the big gov fear project that can never end- and keep pols in power the king of scare em till they beg for it plans.

it can't be this easy to make the people do what they want every time.  humans can't be this stupid ..or perhaps that is what the elite know, yes they are that stupid..spending cuts over ten years LOL

laughing until we cry.

[Catullus]

There is one big takeaway from all this: the Obama administration and Timothy Geithner made a huge gamble saying Aug 3. This is not something to be ignored. They thought they had a good hand and went all-in on this. The problem is that some people started to believe this "deadline for default". As was pointed out by several writers, the government could have delayed some bills, moved more money around, but default on the bonds was never really in doubt.

This is another pound of pressure in the breaking of confidence.

[overmedicatedun...]

for those new to ZH..we repeat the ideas that we here hold both left and right..so you can become vaccinated from the lies used to control ..

1. fiat money is debt on your backs

2. TBTF control the politics of both parties here and across the world

3. the elite are protected from the laws that the people have to live by

4. wars are now non ending money makers for the elite/TBTF

5. we are all fucked..but after a few weeks on ZH you will at least know how badly.

[YHC-FTSE]

Obama just increased his chances of a second term. A fucking tsunami and 3 blown nuclear reactors failed to sink the Yen with a debt to gdp ratio of 200%, so this QEx could go on for quite awhile, social and political chaos notwithstanding. 

[RiverRoad]

The death throes of a nation are SO annoying.  Where's our medical pot?  Oh, I forgot we're in remission now.

[supersajin]

Hope & Change Bitchez....

[Commander Cody]

I'm sure we will be surprised at how long the Ponzi takes to crash.  With no rules, a printer with infinite toner, and the fascists in control, the Ponzi will grind on inexoribly.  Don't get left behind.  Ride the wave until it breaks.

[Atlantis Consigliore]

KICK THE CAN KICK THE CAN, KICK THE CAN, KICK THE CAN,

KICK THE SCAN, SPINELESS DAMM, KICK THE CAN PAST THE VAN,

KICK THE CAN, UP THE REAR, PAST THE ELECTION, WHEW IM CLEAR,

ITS A SCAM, 1 TRILLION, BAM,

SPINELESS MITTED, REPUBS ARE OUTWITTED,

KICK THE CAN UP YOUR MIDSECTION,

KICK THE CAN, PAST THE ELECTION,

WIPE CONVERSATIVES REAR, WITH A TISSUE,

KICK THE CAN, AND LOSE THE ISSUE......

ONE MAN ONE VOTE IS THAT REALLY REAL?

THE NAME OF THE GAME IS LETS MAKE A DEAL, ...

LET ME HEAR YA SAY SCAM, SPARE CHANGE, SOCIALISM,

CUTS IN SPENDING LMAO.

[MyKillK]

SO they're going for over 2 trillion in cuts without being able to touch entitlement programs? There is no way.

[chinawholesaler]

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