This page has been archived and commenting is disabled.

Latest In The Debt Ceiling Crisis: Reid To Offer $2.5 Trillion In Deficit Reductions And No Tax Increases

Submitted by Tyler Durden on 07/24/2011 16:54 -0400

Debt Ceiling

BREAKING - NEW Dem. debt plan: Reid to offer at "least $2.5 Trillion" in deficit redux w/ no revenue increases, Dem. source tells CNN.
NEW REID PLAN: "At least $2.5 T in deficit redux" w/ no revenue increases. BUT, unclear what baseline he's using and what he'd cut.
REID PLAN: Dem aide tells our @tedbarrettcnn they think it meets GOP call for dollar-for-dollar spending cuts with debt increase.

And we are confident that the spending "cuts" will take place over 10 years, back-end loaded, which means no spending cuts any time soon. Said otherwise, no spending cuts, no tax hikes. And yes, $2.5 trillion debt ceiling increase. Just as we predicted two weeks ago.

More as we get it.

- advertisements -

Sun, 07/24/2011 - 18:01 | 1488653 JustPrintMoreDuh

Rumors of a last second offer ... raises the debt limit 100 Trillion, with only modest tax increases (up 99%) on the wealthiest Americans (anyone with a job) with a gradual overall reduction in spending of 100 Quadrillion by 2150.

God bless our Congressional representatives.

Sun, 07/24/2011 - 18:07 | 1488690 Mike2756

Nope, has to be 1 for 1, $1 in "cuts" for every $ in increase, that's "balanced".

Sun, 07/24/2011 - 18:03 | 1488664 automato

We've only got 2 weeks anyway.

Sun, 07/24/2011 - 18:07 | 1488689 SmoothCoolSmoke

FX. Interesting. Soon as spreads shortened (2 pips), USD takes off.

Sun, 07/24/2011 - 18:11 | 1488715 cranky-old-geezer

2.5 trillion over 10 years won't prevent a downgrade. AAA, say goodbye.

Sun, 07/24/2011 - 18:38 | 1488855 real

i thought i smelled shit. whats wrong with you putting a picture up like that

Sun, 07/24/2011 - 18:31 | 1488817 r101958

Sure.....2.5 trillion over 10 years but the cuts don't start until after the election (if even then).

Sun, 07/24/2011 - 18:40 | 1488867 eri

LONDON - Right-wing "nutters" in the United States Congress holding up a deal to prevent a catastrophic debt default are a greater risk to the global financial system than problems in the euro zone, a British minister said Sunday.

"The irony of the situation at the moment, with markets opening tomorrow morning, is that the biggest threat to the world financial system comes from a few right-wing nutters in the American congress rather than the euro zone," he told BBC television

hahaha

Sun, 07/24/2011 - 21:22 | 1489308 knukles

God, that so reminds me of living in the UK.....
Anytime it was possible, play "Bait the Yank".
Even the space program. Sitting there late one night watching the telly (back then only BBC and on short parts of the day) late show on a space launch. Shutlle.
Well, not to be fucking outdone by the Canadians who built the arm in the Shuttle and had the decal/paint on it saying "Canada", the twit on the Beeb starts on about how the mission commander had on a British made watch. (A what?)
And that without exact fucking percise timing down to the millisecond, which would be determined by that British watch, the mission would meet with disaster. The angle of attack upon rentry would be too shallow and the shuttle bounce off the atmpsohere into space never to come back, or too steep and burn to a cinder in a moment.
And all due to that British watch.
And nobody ever told anybody what the name of the British watch manufacturer was.....
Didn't know the Brits made watches that even worked. These were the days when Lucas electrical harnesses in Jags, MG's etc., were referred to as the "Prince of Darkness".

Bait the Yank
Or, when in a panic, just lie and obfuscate!
Hell, now's official policy thanks to was it Juncker?
WTF, Europe is coming apart at the seams and it's the Yanks again.

Ouick men, a diversion!
In the best of the Bernaysian Tradition.

Sun, 07/24/2011 - 19:24 | 1489052 Fred Hayek

The only way this possibly ends in a meaningfully positive result is if Boehner has been running out the clock and at the last minute the House passes something like $600 Billion worth of real cuts to take place now while the debt limit is extended the same $600 billion, basically what Krauthammer suggested.

$2.5 Trillion over ten years is NOTHING when you're running deficits of $1.7 Trillion every year.

Sun, 07/24/2011 - 20:58 | 1489263 Ident 7777 economy