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Paul Ryan Throws Up All Over Reid $1 Trillion Budget Gimmick
Earlier it was our turn to suffer a series of subdural hematomas courtesy of the $1 trillion in "savings" from wars yet unfought as per Harry Reid's plan "proposal." Now, it is Paul Ryan's turn.
A Trillion-Dollar Gimmick
July 25, 2011
“Why, one wonders, not ‘save’ $5 trillion by proposing to spend that amount to cover the moon with yogurt and then cancelling the proposal?”
-George Will, Washington Post, March 12, 2009
Claim 1: “Winding down the wars in Iraq and Afghanistan will save $1 trillion.”
Reality: The Reid plan relies on the inaccurate assumption that surge-level spending in Iraq and Afghanistan is scheduled to continue over the next decade. An honest budget cannot claim to save taxpayers’ dollars by cutting spending that was not requested and will not be spent. Senate Democrats are employing a budget gimmick that will not fool the credit markets and does not address the urgent need for Washington to get its fiscal house in order.
Claim 2: “Paul Ryan’s budget also included this savings in its deficit reduction calculation.”
Reality: False. The House-passed budget cuts $6.2 trillion in spending relative to President Obama’s Fiscal Year 2012 budget request. This $6.2 trillion figure assumes ZERO savings from the global war on terror relative to the President’s budget.
Background
The $2.7 trillion debt-limit increase proposal offered by Senate Majority Leader Harry Reid contains a $1 trillion gimmick meant to disguise the plan’s shallowness on spending cuts. Supporters of the Reid plan are measuring their savings against a baseline that assumes the continuation of surge-level spending in Iraq and Afghanistan, even though the President has neither requested this funding nor signaled that he might request it. Instead, the President has signaled the opposite: a troop drawdown over the next few years. In other words, the Reid plan is claiming credit for “savings” that were already scheduled to occur, and for “cutting” spending that no one has requested.
Rather than defend this gimmick on the merits, supporters of the Reid plan are defending it by claiming that House Republicans “also included” this $1 trillion in savings when calculating spending reductions in the budget resolution that passed the House last April. This claim is false. The House-passed budget cuts $6.2 trillion in spending relative to President Obama’s FY2012 budget request, and this spending reduction assumes ZERO savings from the global war on terror relative to the President’s budget.
In the interest of maximum transparency, House Republicans produced additional estimates in order to provide a broad range of comparisons by which outsiders could judge the seriousness of the their budget’s commitment to real spending cuts and controls.
For instance, Table S-4 of the House-passed budget provides two savings estimates. The first estimate compares the House-passed budget to the “current law” baseline used by the Congressional Budget Office [CBO], even though House Budget Committee Republicans have consistently noted that the CBO current-law baseline is not the most reasonable budget baseline with which to compare future-year budget plans. For example, the current-law baseline assumes a $3.5 trillion across-the-board tax increase in 2013, as well as a continuation of spending for the global war on terror at its current level for the rest of the decade, with upward adjustments for inflation. The CBO has noted that these policy outcomes are unlikely, which is why it has also constructed an “alternative fiscal scenario” baseline that assumes more realistic outcomes.
In order to provide a more relevant comparison, House Budget Committee Republicans provided a second estimate in Table S-4, comparing the House-passed budget to President Obama’s FY 2012 budget request. This comparison makes clear that, even with no savings attributed to the troop drawdown and with identical numbers to the President’s on the war on terror, the House-passed budget cuts spending by $6.2 trillion relative to the President’s request.
It’s one thing to include, as the House-passed budget does, information about savings relative to the CBO’s current-law baseline as part of an effort to be comprehensive and transparent. It’s another to claim, as supporters of the Reid plan are claiming, that such “savings” represent a major commitment to cutting spending. It simply isn’t true.
It is encouraging to see Senate Democrats acknowledge that job-destroying tax increases are a bad idea – and that they are ready to work with House Republicans to cut government spending. Yet it is critical for policymakers to maintain credibility as they work together to deal responsibly with the debt ceiling. Senator Reid’s misleading claims will not pass muster with credit markets. Such gimmickry does a disservice to the American people, who deserve responsible, honest leadership.
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-1 for denigrating ZH posters
D'oh, maybe it's the water.
We split our company so that we would not have more than 49 employees per company. When you go over 49, it is crossing the Rubicon. You are now basically under so many controlswith Obamacare that the whole business model will not work short of raising overall costs to all the customers by 12%.
I did the math over the weekend then told the customer today that we would not be able to deliver the extra $1.3 million of our product next year on the timetable he required. His increase in requirement would actually would require me to hire more people. So, the customer can buy $3.1 mil per year, but if he needs the extra $1.3 mil; he will go from paying 4.3 to $4.8million. He was agast and I just shrugged, At one time I would find a way to reduce costs, but seeing what the government looters do with half my income at this point; I am going on vacation. I actually hope they find another supplier. I would rather not have the experience of having anything extra to do with the government. A looter or thief hits you once and leaves..these cocksuckers come again and again; always wanting more, always giving me more rules and always telling me who I should feel sorry for, who not to offend and then throw my hard earned reward to every undeserving enemy foreign and domestic.
This shit has got to end.
So pay attention to whom you vote for. Contrary to the majority of morons here (most of whom voted the Squirrel), your vote does matter.
It is revolting inside me to turn my back on opportunity-so tonight I sit and drink wondering if I will lose all the business to a company connected with a Obamacare waiver of national scale with a union etc...
I almost think demoralization is their biggest weapon.
As I and several other community members here have pointed out in the past:
If your vote truly mattered, they would take it from you.
I wish I could believe it truly did, but having been a programmer for some time now I can assure you, your vote can be removed with the push of a button in most cases.
Mynhair--YOU CAN'T BE SERIOUS! "Your vote truly does matter"?!?!?
And you're a regular poster here on ZH?
Squirrel seems more racist than coon
If I said it once, I said it a million times. Fiat money is a digital virus that infects all computers, including the computer called the human brain. "Fractional reserve" thinking is a progressively corruptive disease, enabled by the fiat virus. There is no fundamental difference between the corrupt thinking that invented the CDO, and the corrupt thinking that pukes out bullshit like "saving" money that was never planned to be spent in the first place. It all has the same meme, namely, inventing something out of thin air, and then continually changing its definition. The fact that Reid's proposal is taken seriously by even ONE other person in the US Government, is a sure sign that our nation is either doomed, or on course for cataclysmic changes to purge this kind of crap.
Gotta have a medium for transactions. Try buying from Amazon with a goat.
Need faith, grasshopper. Not enough gold in the world for transactional purposes.
Re-elect Oweblahma! Vote Ron Paul!
So if this year I don't spend a million dollars that I don't have, that's taxable income because I have saved it?
I need Timmy's tax software.
Better yet, Hank Paulson's tax software.
29 minutes to the next Oweblahma lecture!
UUrrpppp
Anyone notice that the political chicken only really starts once the election cycle gets going? I mean, what else are they going to do for two years?
uh.....rescind the Patriot Act? That would be a good start. Then rescind every single stupid worthless counter-productive redundant "unintended consequences" pile-of-shit despicable anti-American cock-sucking law they've put on the books the past 200 years
fuckin' lawyers (tm)
Amen Cosmic!
How does this piece of garbage Reid get up in the morning, look himself in the face, and actually speak this tripe?
The System Elites have built a firewall to protect themselves so they aren’t hurt. When they are in crisis, the government and Fed respond with money. And the cycle of debt continues...until one day it doesn’t.
Adam Smith (aka George J.W. Goodman-Harvard magna cum laude/ securities analyst and fund manager with many corporate directorships), wrote after the close of the stressful 70s in Paper Money that “as the debt building goes on, we become more vulnerable to some external shock, an oil crisis, a banking crisis, the fatigue point of the takers of the debased key currency.
“Serious people wonder,” said Goodman: “How do we break this cycle? We are not an isolated, self-sufficient island…
“Without a shock we will continue to have more borrowers than lenders and to move to greater vulnerability. With a shock—and it could be a domestic malfunction, as well as an external shock—the System could break down.
“We shape our houses, and then they shape us. The building of the debt creates more dollars, which creates a distrust of dollars, which erodes the credibility of the currency as a store of value. We become more concerned about getting through the next crisis, next year, than about the next decade and the next generation, and that works against our better instincts.
“Those instincts—to work and save, to accumulate—are strong in productive societies. They have to do with children and trees. People want to plant trees they may not see mature, to leave things for the next generation, to take advantage of increasing herds and compounding interest.
“Though they do not think of it in exactly this way, people want the money itself—not gold, not silver, not Kewpie dolls, not canned goods or even houses---to be the store of value, because they do not want to spend their time figuring out how to escape or manipulate the currency. Somebody else will always manipulate faster and leave them the loser, and anyway, they would rather be doing what they do, building or selling or plowing or singing. The trouble with paper money is that it rewards the minority that can manipulate money and makes fools of the generation that has worked and saved.
“Keynes worried about the other side of the problem, how to reliquify the economy, how to loosen up the savings, and he thought the Protestant ethic extreme. ‘We have been trained too long to strive,’ he said, ‘and not to enjoy,’ and he looked forward to the day when the ‘social customs and economic practices…useful in promoting the accumulation of capital, we shall be free, at last, to discard.’ …
“We have arrived at the day Keynes was waiting for…”
Now, mindboggling multitrillion-dollar-deficit-spending is peeling off the value of the dollar, destroying the nation and its people. And we have a Congress that would rather have the money and the perks than their country: we’ve got to get them out of the people's House.
Burn down the fucking House! It has caused nothing but trouble since the Constitution bastardised the Articles of Confederation!
Some selected highlights of Central Planning from Washington, DC:
Can't wait for the new blazing lies to regurgitate from the lips of Obama. According to Mark Levine this evening, upcoming servicing obligations are only 29b. Sorry no link, heard on radio while driving.
Hate to say this but Democrats count on you being stupid and not engaged.
And right on cue, Nancy "clean the swamp" Pelosi LOVES Dirty Harry's bag o'tricks,because austerirty is the new black, ya know...
"Washington, D.C. – Democratic Leader Nancy Pelosi released the following statement on proposals announced today to reduce the deficit and avoid default:
“It is clear we must enter an era of austerity; to reduce the deficit through shared sacrifice…
“The latest proposal from the House Republicans is a short-term plan that burdens the middle class and seniors, and continues this debate about whether we will default in a few months from now.
“Senator Reid has put forward a responsible plan to reduce the deficit that protects the middle class, and Medicare, Social Security and Medicare beneficiaries. It also includes many proposals already supported by Republicans."
Lenin would be proud comrades.
How can you tell when a politician is lying.........
And the tragedy is, the media reports her words as being responsible, rather than taking her apart.
"What else are they going to do for two years?"
How about passing a bill requiring every american carry health insurance or face a penalty? How about Enacting a new entitlement program whose content no-body really knows but which will bankrupt any currently non-bankrupt states. I just wish they'd do nothing for a change! Maybe debate the national flower.
All we asked was a government that would protect our labor and our families and our country. And we were willing to pay for it – you need an army to defend our country, we’ll pay. You need streets and roads and utilities and help for the indigent, we’re glad to do that.
But that wasn’t what they wanted; they wanted to dominate us, to tell us what to do, and to take the fruits that we produced to fund their self-serving programs. And if we don’t pay up, they fine us, or put us in jail…
The underlying plan is continue looting the American people.
Any specific plans must follow that undelying plan.
The American people can be looted by taxation and / or inflation.
Any proposed debt ceiling plans will boost taxes, or boost inflaton, or both.
That's all there is to it.
Where's the new thread? All stand for der Fuhrer!
Jesus Christ Erin Burnett is a fucking studering tool now on with Wolf Zipper on CNN.
Hahaha, she's sticking out like a turd in the punch bowl.
O bought to speak
It's Bush's fault. Go figure.
"I won't bore you with the details...you ignorant sheeple"
The first cut is the deepest
Ya, derail the proposal. Knew the Squirrel would. Fits in with my 'No deal, Howie'!
Underestimating the TEA party again. Is there anyone more stupid than this moron Squirrel?
corporate jet owners! Eat your peas! And now I will invoke Reagan!
God, what a moron. Take your fair share and shove it up your wannabe Reagan ass! Douche.
And nowi will scare the shit out of old people
Johnny jumped off a bridge, so we should too.
Lies, damn lies, and Oweblahma spew.
Resign, you half-breed asshole!
Kick the can...that phrase is sooo last week...kill the speechwriters
Dumb shit doesn't know when he is toast. That's why advisors are so important.
Wait...you mean we'd have realistic rates of interest? NO!!!
I got a place over here six feet under - how's that for common ground?
God, I love the smell of Constitutional crises in the evening....
And now I will appeal to your patriotism...Jefferson...etc...
You can't make this stuff up.
"uncompromising" Obama now whining on tv that the Republicans won't compromise. I just threw up a little myself.
And now I will strut
And now...The Tan
Boner to Oweblahma: Fuk you, Jobu!
"the bigger the government, the smaller the people". Now that's speechwriting
Boehner: +1
Obama: zero
Did that weasly little cunt use the term "economic justice?"
actually, i don't think that was tyler
Nice cut&paste from earlier. Now go piss off, you scurvy rat!
wanna see it again, you putrid, insignificant fur ball?
tell ya what, considering the degree of your hyperactivity, here: choose two out of three, there, and i'll let you live to see tomorrow
Puts Boner's appearance earlier in perspective. Wondered why Ryan wasn't present. This one has Ryan's prints all over it.
Well played.
Word of the year...clusterfuck
<p style="text-align: justify;"><span style="color: #000000;">The Cardinals are looking for a quarterback, either by trade or as a free agent pickup. There have been rumors that wide receiver Larry Fitzgerald has been consulted about the Cardinals next quarterback. Fitzgerald wants nothing to do with disputes assertions that he is advising coach Ken Whisenhunt and General Manager Rod Graves in their quest for a quarterback.“There is no truth to that at all,” Fitzgerald wore </span><span style="color: #666699;">NFL Jerseys</span><span style="color: #000000;"> and told Kent Somers of the Arizona Newspaper via text Friday. “I have no criteria. The two sides have not even sat down and talked. I have not talked to any coach on staff for six months. I am like everybody else scrambling to make this season a success. “There are much more pressing needs for our team than me. I am under contract. My situation will work itself out. I am not worried about it; the team should not be, either. I want to be a Cardinal.” Of course, Fitzgerald will be a free agent at the end of the season and if they cannot find a quarterback who can get the Cards offense in gear, the chances of him staying, their chances to keep him will be decreased. Fitzgerald compared the Cardinals’ downfall to going from caviar to eating out of the garbage can. You can log on our Online NFL Shop and select our best quality </span><span style="color: #666699;">MLB Shop</span><span style="color: #000000;"> if you are true fans of Larry Fitzgerald and Arizona Cardinals.</span></p>
Seriously dude? J/k. Football bitchez!
The Juggernaut Obama and his cronies are not patriots, nor public servants--they are like minded communists with an agenda for social justice aka fascism...
The main stream media has been mocking the bickering in DC with a faux intellectual discussion about whether or not we should have this kind of disagreement in our government--I think these people either never had US history, or they have been successfully propagandized by pro-fascist policies.
Thanks for that, agrotera.
The battle lines finally are clear…American taxpayers on one side, the bankers and elites on the other. Most all mass media is now working for or are a part of the banker-owned United States – such as NBC/Comcast.
GE CEO Jeffrey Immelt and NBC Universal President Jeff Zucker have called the news shots at NBC, and CNBC, and MSNBC when things got sticky. Now that control will be shared by US cable TV operator Comcast.
Following regulatory approvals of a buyout agreement, on January 28, 2011 Comcast became 51% of NBC Universal with GE retaining 49% ownership; after the merger Zucker was replaced by Comcast executive Steve Burke.
BTW, the communication empire of these two giants is startling. Check them out on Wikipedia.
One third of Comcast is controlled by CEO Brian L. Roberts, son of Ralph Roberts who was one of the founders and a former chairman of the company; Brian Roberts also claimed three silver medals from his contribution to the U.S. squash team at the Maccabiah Games (the Jewish Olympics) in Israel in 1981, 1985, and 1997.
MSNBC is regularly accused of political bias because of its leftward tilt. Then there's CNBC. CNBC is a business news channel watched by traders and investors around the globe; it shilled for the bailout, it shilled for green energy, it shilled for the stimulus package.’
And that’s just one global media corporation…
Is it any wonder that the tyranny in the halls of government becomes consistently stronger when the watchdogs of the press, no longer watching, are instead operating their own empires to serve and preserve the oligarchy?
Dear JR, Thank you Jr. I enjoyed your comments here and always, and as we watch and wonder about the soul being stolen from our country and maybe the world, i am comforted to read your words and the words of others who have a clear understanding of what is wrong...may we all have the courage to find a way back to our "more perfect union".
Peace to you and may God bless you and your family!
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Yep, MSM is actually owned by TPTB. The media conglomerate ownership includes large stakes by the squid institutional investors.
Yep, marxist inspired smiley faced fascism justice for us. Motto --- "Shared sacrifice shall set you free."
More deficit spending confiscation through inflation. More odious debt for the banks to enslave us.
The little dictators shall continue to be approved as long as they are good bone collectors for TPTB.
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