How to fix the deficit and keep America's AAA credit rating

[cebalrai]

All the Republican house can manage is $1.2 trillion in deficit reduction, which turned into $900 billion when economists looked at the plan. No tax hikes, just some spending cuts that are too small to deal with the problem. Apparently Bohener's weeks of talking about supporting $800 billion in revenue increases was all a huge waste of time since the house wont support 50 cents of increases.

Meanwhile the plan in the Democratic Senate has $2.7 trillion in deficit reduction but it includes closing tax loopholes. Standard and Poor's is considering downgrading the US credit rating (a 50-50 chance they say) if there isn't a credible solution to the debt found. They suggest passing a $4 trillion agreement.

Here's how we can avoid default, slash the deficit deeply to reach that $4 trillion mark, and keep out AAA credit rating, all without raising marginal tax rates:

1) Start with the Senate plan. That's 2.7 trillion.

2) Roll back the Bush tax cuts on the top 2% of Americans. That's $890 billion according to the CBO.

3) That leaves us $310 billion, or $31 billion per year. This is a very doable figure that can be achieved by smaller cuts and/or revenue increases. Also, it's actually less than $310 billion, because if we're making deficit cuts this deep there will be far less interest to be added in. Roll back the Bush tax cuts on the top 2.5% richest, *poof*, solved.



http://news.yahoo.com/deal-no-deal-us-downgrade-looking-likely-215151805.html
http://www.cbo.gov/ftpdocs/112xx/doc11280/frontmatter.shtml

 

[JAMESBJOHNSON]

Create some jobs. Jobs increase revenue and decrease spending without fucking everyone. Its the best solution and the only solution no one wants to pursue or talk about in Washington.

 

[cebalrai]

Create some jobs. Jobs increase revenue and decrease spending without fucking everyone. Its the best solution and the only solution no one wants to pursue or talk about in Washington.

Nope, gotta act right now. S&P and the other credit rating agencies are going to adjust out credit rating in a few weeks.

 

[Frisco_Slug_Esq]

Your president told you the truth about the Bush tax cuts when he had the opportunity to roll them back without the Republican Party.

If you want to continue into a lost decade by all means raise taxes so that you do not have to make adult choices about entitlement spending.

And, to be on the record, I am all for raising taxes because as I predicted and have observed all throughout the rise of the Obamanation; their own damned policies continue to bite them on the ass and they never see it coming, so go for it, it's going to affect women, children, minorities and the unions the most. Those slings and arrows might hurt me a little, but it will hurt them more and we have plenty of reserves...

When we go belly-up, it will be the most selfish portion of America -- the Democrat voter who gets it the worst, and I, for one, am all in for a little taste of justice for the wealth-envy crowd.

Cloward and Piven are beginning to make sense; there is no way the politicians, Republicans, Democrats, and Obama are not about to do anything drastic, so the only real change will come with a collapse giving the actual producers a chance to pick up the pieces and and return politics and money back to the local level. Right now, it seems like the Democrats are eager for a little C&P too thinking that it will give them the upper hand, but trust me, the hand-out crowd is in its place because of its habits and the producers are where they are because of their habits.

One proclivity will prevail when the shit hits the fan; that's the one that promotes our traditional success, not the one that begs for a juicier teat of public weal...

 

[Frisco_Slug_Esq]

Oh yeah, and $1 trillion of Harry's "cuts" are Obama ending his wars, which he will not do because he knows, like with the tax cuts, it will end badly and while the Democrats were willing for it to end badly while Bush was in office, they seem rather loath to do it on their watch.

Good thing Obama followed through on his first promise - to close Gitmo, lord knows we'd be in a world of hurt if we were still paying for that; it's the reason we can still be hounding Momar out of office -- the savings!

That's why we're going to be downgraded.

Because no one in Washington DC will do anything to save us; they are too busy trying to save themselves in the next election, all they are doing is screaming at each other about how the other is the problem and painting the only people who want to do adult things as "extremists" who want to push grandma over a cliff...

 

[JAMESBJOHNSON]

Nope, gotta act right now. S&P and the other credit rating agencies are going to adjust out credit rating in a few weeks.

S&P. Didnt they sit on their hands and gaze at their navels when things were turning to shit back in 2008? I think they were.

 

[JAMESBJOHNSON]

Oh yeah, and $1 trillion of Harry's "cuts" are Obama ending his wars, which he will not do because he knows, like with the tax cuts, it will end badly and while the Democrats were willing for it to end badly while Bush was in office, they seem rather loath to do it on their watch.

Good thing Obama followed through on his first promise - to close Gitmo, lord knows we'd be in a world of hurt if we were still paying for that; it's the reason we can still be hounding Momar out of office -- the savings!

That's why we're going to be downgraded.

Because no one in Washington DC will do anything to save us; they are too busy trying to save themselves in the next election, all they are doing is screaming at each other about how the other is the problem and painting the only people who want to do adult things as "extremists" who want to push grandma over a cliff...

We cancelled buying the Moon, so thats another trillion of savings.

 

[Frisco_Slug_Esq]

I thought we were going to land on an asteroid...






... you might learn how to save the planet!

 

[JAMESBJOHNSON]

I thought we were going to land on an asteroid...

... you might learn how to save the planet!

Youre right! WE'RE IN THE MONEY AGAIN!

 

[Frisco_Slug_Esq]

 

[Saint Peter]

I thought we were going to land on an asteroid...






... you might learn how to save the planet!

We should do no such thing.

Science is fucking scary. Be happy with your flat Earth.

 

[Frisco_Slug_Esq]

We should do no such thing.

Science is fucking scary. Be happy with your flat Earth.

Go fuck your illiterate, unread ass with a tail hook...

 

[Frisco_Slug_Esq]

While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.

In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn't raised by the August 2 date Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders. Geithner made the rounds on the Sunday talk shows saying a default is imminent if the debt ceiling isn't raised, and President Obama issued a similar warning during a Friday press conference after budget negotiations with House Republicans broke down.

...

A senior banking official told FOX Business that administration officials have provided guidance to them that even though a default is off the table, a downgrade "is a real possibility for no other reason than S&P and Moody's have to cover (themselves) since they've been speaking out on the debt cap so much."

This guidance is a big reason why Wall Street has largely dismissed the possibility of default, and though the markets have been jittery amid the talk of default, they haven't imploded as would be the case, many economists fear, if the nation missed a payment on its debt.

...

Even without a default, banks expect some market turbulence if the triple-A sovereign-debt rating is cut, sources tell FOX Business. While bank officials do not believe there will be a “catastrophic” effect to a downgrade, that’s not to say there won’t be negative ripple effects, notably to bond deals and derivatives priced off triple-A-rated Treasurys.

Read more: http://www.foxbusiness.com/markets/2011/07/25/obama-to-banks-were-not-defaulting/#ixzz1TJ5yRSZw

 

[Saint Peter]

Go fuck your illiterate, unread ass with a tail hook...

Science does not care if you do not believe, do not support, or are just being plain nasty.

Unlike Jesus, science will be here for you regardless of your sins.

 

[Frisco_Slug_Esq]

Science does not care if you do not believe, do not support, or are just being plain nasty.

Unlike Jesus, science will be here for you regardless of your sins.

Which one of us already HAS a Science degree?

__________________
I Я smart! I Я Union and my VoTech "education" has put me on top of the slave pyramid...
St. Pete, the Enlightened

Quit hitting me with your Christian "hate!"
http://forum.literotica.com/showthread.php?t=759907
A_J, the Minority, the Atheist

 

[JAMESBJOHNSON]

Nope, gotta act right now. S&P and the other credit rating agencies are going to adjust out credit rating in a few weeks.

Maybe Obama and Boner want a lower credit rating, maybe all the wrangling is a conspiracy to pay bond buyers more money.

With Washington you always gotta keep in mind that the players come to town to do well...NOT good.

 

[Frisco_Slug_Esq]

Maybe Obama and Boner want a lower credit rating, maybe all the wrangling is a conspiracy to pay bond buyers more money.

With Washington you always gotta keep in mind that the players come to town to do well...NOT good.

3. President Obama’s most recent annual personal financial disclosure form showed that he has by far most of his personal assets, anywhere between $2 million and $10 million dollars, in "U.S. Treasury Notes" and "U.S. Treasury Bills." It sure would be interesting to know if he has since moved out of those positions. If he hasn’t, someone should ask him why he’s so eager to pay more in income taxes, yet so unwilling to take a haircut on his bond portfolio.

4. When it was Chrysler secured bondholders objecting to getting defaulted on by the president’s auto task force, Mr. Obama denounced them as “a small group of speculators” who were “hoping that everybody else would make sacrifices and they would have to make none.” Where was Mr. Obama’s newfound respect for bondholders back during the Chrysler deal? Or, conversely, if Chrysler bondholders should have had to bear some sacrifice then, why shouldn’t Treasury bondholders now?

http://reason.com/archives/2011/07/25/five-facts-about-the-debt

 

[Saint Peter]

Which one of us already HAS a Science degree?

__________________
I Я smart! I Я Union and my VoTech "education" has put me on top of the slave pyramid...
St. Pete, the Enlightened

Quit hitting me with your Christian "hate!"
http://forum.literotica.com/showthread.php?t=759907
A_J, the Minority, the Atheist

Your science degree from the state that put disclaimers in science books?

Get real.

 

[Frisco_Slug_Esq]

Use two ass hooks.




I did not go to college in KANSAS turd-sniffer.

 

[kbate]

For the first time ever, it is possible that JBJ has the right idea:

Social Security and Medicare hold nearly 3 trillion in government debt instruments - ranging in yield from 1.2% to 3%. If we default on our debt and our credit rating drops - when these bonds are rolled over into new debt - Social Security and Medicare will now have 3 trillion earning 4% to 7% - instantly solving their long term solvency problems.

This is pure genius at work.

Oh, sure we'll inflate the economy a bit - but that will allow real salaries to climb and we can then also claim that stagnation in wages is over.

Another economic miracle.

I choose to ignore any possible arguments against my ANALysis from those who might state that housing interest would also rise or that capital might become scarce. Investor greed will keep them in the markets.

 

[Ulaven_Demorte]

You gotta love it, the new mantra is that our credit rating being downgraded will be a good thing?

 

[KRCummings]

Who knew that the worlds leading economists and the solution to our financial problems were here at Lit? Why isn't the government listening?

 

[Joeybagadonuts]

All the Republican house can manage is $1.2 trillion in deficit reduction, which turned into $900 billion when economists looked at the plan. No tax hikes, just some spending cuts that are too small to deal with the problem. Apparently Bohener's weeks of talking about supporting $800 billion in revenue increases was all a huge waste of time since the house wont support 50 cents of increases.

Meanwhile the plan in the Democratic Senate has $2.7 trillion in deficit reduction but it includes closing tax loopholes. Standard and Poor's is considering downgrading the US credit rating (a 50-50 chance they say) if there isn't a credible solution to the debt found. They suggest passing a $4 trillion agreement.

Here's how we can avoid default, slash the deficit deeply to reach that $4 trillion mark, and keep out AAA credit rating, all without raising marginal tax rates:

1) Start with the Senate plan. That's 2.7 trillion.

2) Roll back the Bush tax cuts on the top 2% of Americans. That's $890 billion according to the CBO.

3) That leaves us $310 billion, or $31 billion per year. This is a very doable figure that can be achieved by smaller cuts and/or revenue increases. Also, it's actually less than $310 billion, because if we're making deficit cuts this deep there will be far less interest to be added in. Roll back the Bush tax cuts on the top 2.5% richest, *poof*, solved.



http://news.yahoo.com/deal-no-deal-us-downgrade-looking-likely-215151805.html
http://www.cbo.gov/ftpdocs/112xx/doc11280/frontmatter.shtml

You've got my vote.

 

[RobDownSouth]

Who knew that the worlds leading economists and the solution to our financial problems were here at Lit? Why isn't the government listening?

All the Lit expertise gets lost in the flotsam and jetsam of the daily AJ cut-and-paste tsunami.

 

[KRCummings]

All the Republican house can manage is $1.2 trillion in deficit reduction, which turned into $900 billion when economists looked at the plan. No tax hikes, just some spending cuts that are too small to deal with the problem. Apparently Bohener's weeks of talking about supporting $800 billion in revenue increases was all a huge waste of time since the house wont support 50 cents of increases.

Meanwhile the plan in the Democratic Senate has $2.7 trillion in deficit reduction but it includes closing tax loopholes. Standard and Poor's is considering downgrading the US credit rating (a 50-50 chance they say) if there isn't a credible solution to the debt found. They suggest passing a $4 trillion agreement.

Here's how we can avoid default, slash the deficit deeply to reach that $4 trillion mark, and keep out AAA credit rating, all without raising marginal tax rates:

1) Start with the Senate plan. That's 2.7 trillion.

2) Roll back the Bush tax cuts on the top 2% of Americans. That's $890 billion according to the CBO.

3) That leaves us $310 billion, or $31 billion per year. This is a very doable figure that can be achieved by smaller cuts and/or revenue increases. Also, it's actually less than $310 billion, because if we're making deficit cuts this deep there will be far less interest to be added in. Roll back the Bush tax cuts on the top 2.5% richest, *poof*, solved.



http://news.yahoo.com/deal-no-deal-us-downgrade-looking-likely-215151805.html
http://www.cbo.gov/ftpdocs/112xx/doc11280/frontmatter.shtml

Unless I'm missing something you're off by 100 billion.