The Wall Street Journal, and several other sources are reporting that the Congressional “Supercommittee” will announce it has failed to reach a deal to cut spending, which in turn could trigger automatic spending cuts.
The Supercommittee was set up back in August, during the deal to increase the debt ceiling. The committee was tasked with reducing spending by $1.2 trillion over the next 10 years.
The reality is that none of this was unexpected. Congress basically punted their responsibility to this “committee” which just led to more delays and more phony tap dancing.
The fact is, the Democrats don’t want to cut spending at all, they still want to increase spending even more. All these cries for “action” on jobs, is just their never ending cry for a government run solution, for everything with the taxpayers picking up the check. For them, increasing taxes has become a religion that they just can’t walk away from.
Our Federal government spends 25% of our GDP (Gross Domestic Product), when in the past the average has been about 18%. President Obama and his allies have gone on a spending spree, and want even more.
We must have real, significant spending cuts or we will be in the same boat as Greece and Italy are in right now. On the verge of total bankruptcy. Their bond yields go threw the roof, because no one wants to buy them and take that huge risk of a government default.
The bills are finally coming due, and as my grandmother used to say the “chickens are coming home to roost”.
I think it is pretty clear now that the only thing, that will “clear up” the situation, is the 2012 elections. The large automatic Defense cuts of $600 billion are scheduled to take place at the beginning of 2013. Whatever new government is elected will take office at the same time. That is certainly why Congress arranged them like that.
It is time the American people held this President, and this Congress, accountable for the gross overspending by our government, which endangers the future of this nation.