By John Galt
July 31, 2011
That’s it boys and girls.
That is the first payment as proposed tonight against total U.S. debt obligations the new improved revised top secret political deal created on Sunday provided of course the U.S. government stops spending and actually cuts programs and the wildly absurd G.D.P. calculations of the C.B.O. come true.
There really isn’t much commentary necessary because as of the time this is written there is no definitive final legislation to tear apart in detail on this Sunday evening at 10 p.m. Eastern Time.
Yet the administration, Republicans, Democrats, and faux Tea Partiers will all all hoist their white flags and declare victory.
Before believing them, think about the graph below. It reflects the total reduction in the national debt in the proposed Fiscal Year 2012 program discussed by the politicians versus the total debt obligations of the United States (See USA Today: “U.S. funding for future promises lags by trillions“) on the books through FY 2011. Currently guaranteed is a pathetic $91.7 billion in reductions per year starting in 2012 versus $61,600,000,000,000.00. The proposed reductions in the rate of increase in spending is nothing more than a little boy peeing in the ocean when the tide goes out in a vain attempt to replace the lost water.
(Click on the graph to enlarge/reduce)
Hopefully our little boys leading this nation will remember to shake.