Wednesday, July 20, 2011

Debt Ceiling Debate - #3093 - Gang of Six Gambit Revives Spending Shell Game - American Thinker (2) The Fuzzy Math from the Gang of Six - Redstate (3) New House Republicans Must Fight the Gang of Six's Gangrene Plan - Redstate (4) 7 Reasons Why August 2nd Isn't the End of the World - Redstate (5) Why House Republicans Are Right to Oppose Tax Increases - Bearing Drift (6) U.S. Backup Plan Doesn't Support Rating: Moodys - Reuters

Articles in this post: (1) Gang of Six Gambit Revives Spending Shell Game (2) The Fuzzy Math from the Gang of Six (3) New House Republicans Must Fight the Gang of Six's Gangrene Plan (4) 7 Reasons Why August 2nd Isn't the end of the World - Redstate (5) Why House Republicans are Right to Oppose tax Increases (6) U.S. Backup Plan Doesn't Support Rating: Moodys - Reuters - Scroll down for articles.  PLEASE CALL YOUR SENATORS ABOUT SUPPORTING THE HOUSE PLAN, NOT THE GANG OF SIX OR MCCONNELL'S PLAN - Senate Contact Information........, Senator Webb - 202-224-4024, Senator Warner - 202-224-2023.

Gang of Six Gambit Revives Spending Shell Game - American Thinker - The combined forces of Democrats, the liberal media, and squishy Republicans are working to stampede Republicans into ratifying the expansion of the federal government from an average of under 20% of GDP up to 25%, where it stands after two and a half years of Obama. This is being done in the guise of the Gang of Six Plan (summary here), based on the Simpson-Bowles Commission, whose work was snubbed by President Obama when it was delivered several months ago.The Gang claims "savings" of $3.7 trillion over ten years, but Sen. Jeff Sessions, who has seen the plan scores the actual cuts at 1.2 trillion.The entire package is based on dishonest Washington budget math. Spending increases under the plan, but the politicians claim to be cutting spending because the budget didn't grow even faster. Speaking of spending, why is there no information, anywhere in the summary document, showing how big government will be five years from now? Ten years from now? The perhaps-all-too-convenient absence of this critical information should set off alarm bells.  There's a back-door scheme to change the consumer price index in such a way as to reduce expenditures (i.e., smaller cost-of-living-adjustments) and increase tax revenue (i.e., smaller adjustments in tax brackets and personal exemptions). The current CPI may be flawed, but it would be far better to give the Bureau of Labor Statistics further authority, if necessary, to make changes. A politically imposed change seems like nothing more than a ruse to impose a hidden tax hike.  Read entire article with more information on this plan..........

The Fuzzy Math from the Gang of Six - Redstate - As a rule of thumb, any idea coming from a gang is not a good one. This holds true in the real world; it is certainly true in the gangster world of the U.S. Senate. Members of the media are agog with glee over the supposed Gang of Six deal to cut the deficit by $3.7 trillion over 10 years. There is much hype over the fact that more than half the Senate attended the unveiling of the proposal, with many Republicans – including those in leadership – offering robust praise for it. Congressman Frank Wolf (R-VA) is calling for a vote on the plan, even though most of the details don’t exist.  The festive atmosphere at the press conference prompted bearded Marxist Senator Chris Coons to observe that “if Sen. Durbin and Dr. Coburn can both endorse it, this may be just the tough discipline fiscally and the balanced path forward that we need.” So the questions begs, just how can such an ‘austere budget plan’ garner the support of liberal luminaries like Coons and Durbin?  Read more.........

New House Republicans Must Fight the Gang of Six's Gangrene Plan - Redstate - Think of the Senate “Gang of 6″ Plan as the “Gangrene Plan.” It will slowly, but surely, rot away the nation. It was presented yesterday with a few claims:  (1) It was not designed to play a role in the debt ceiling debate;  (2) It was not meant to undercut the House Republicans’ “Cut, Cap, and Balance” plan; and,  (3) It would not be a tax increase.  The reality is the opposite of each of those statements. The Gang of 6 plan is intended to play a role in the debt ceiling debate by giving the McConnell-Reid-Pelosi Pontius Pilate Act more life to get passed until the Gangrene Plan can take affect.  They rushed the plan out the door with a coordinating statement of support from the White House to try to stop the momentum toward the Cut, Cap, and Balance Plan.  Read more.......

7 Reasons Why August 2nd Isn't the end of the World - Redstate - Washington is currently borrowing about 43 cents out of every dollar it spends, and is close to maxing out its credit limit.  Current law says Uncle Sam cannot borrow more than $14.3 trillion. A few months back, the Obama Administration demanded that Congress increase the national credit line by $2.5 trillion by May 16, or else, it warned, the United States would default on its debts, causing an “economic Armageddon.” ($2.5 trillion is just enough to aver the need for another debt hike until after the 2012 election.)  When May 16 came and went, and nothing happened, the Obama team set a new “Armageddon” date: August 2.  Unfortunately, a lot of folks in Washington and Wall Street – including some who should know better — seem to be taking this new deadline at face value. While it’s true that, at some point, the government will hit the ceiling and have to reduce spending by about 40 percent, exactly when that day will arrive, nobody knows for sure. And don’t believe anyone who tells you he does know. “No man knows the day or the hour.”  Maxed Out Day could be August 2. It could be August 22. Or it could be in September. The exact date really depends on whether the President is willing to tap certain reserves available to him, or decides to force a political crisis.  Read more.........

Why House Republicans are Right to Oppose Tax Increases - Bearing Drift - As the latest attempt to preserve the sovereign debt bubble resolve the debt-ceiling issue careens toward its conclusion, the pundits, experts, et al are lamenting the refusal of the Republican majority in the House of Representatives to accept tax increases as part of any debt-ceiling/deficit-reduction deal. The arguments aimed at the GOP have only two problems: history and economics.  Yes, that’s harsh, but it’s also true. Here’s why.  History: This may surprise folks, but permanent tax increases after World War II are actually less than three decades old. Much of the 1940, 1950s, 1960s, and 1970s involved tax reductions, tax shifts, and a slew of temporary tax increases. Read more........  Article contributed by Steve Peters.


U.S. Backup Plan Doesn't Support Rating: Moody's - Reuters - Backup plan to raise the U.S. debt ceiling and avoid default could still lead to a negative outlook on the country's ratings, Moody's said on Tuesday, highlighting the plan's failure to substantially reduce the deficit.  The back-up plan offered by Senator Mitch McConnell would avoid any immediate downgrade of the coveted U.S. triple-A rating, Moody's analyst Steven Hess told Reuters in an interview, bringing relief to investors who fear an imminent downgrade of the coveted U.S. triple-A rating.  "But the numbers that are being discussed in terms of any possible deficit reduction coming out of this plan don't seem to be very large," Hess said. "Therefore, this plan might result in a negative outlook on the rating."  Read more.......

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