COMMENTARY | Congress and President Barack Obama were all smiles following a compromise to raise the debt ceiling but they are all missing the point. The U.S. debt can no longer be sustained and raising the ceiling with no plan to reduce it below $10 trillion will still result in a downgrade of the country's Triple-A rating.
The debt deal, according to Yahoo! News via Time, says the deal will make $900 billion in spending cuts immediately and then raise the debt ceiling through January. The next step in the process will establish a bipartisan committee to make another $1.5 trillion in cuts.
The watered-down bill also calls for a balanced budget amendment to the constitution. The door is still open for Democrats to raise taxes during the process, which is a defeat for Republicans. Another black mark for Republicans is spending cuts to the military budget.
Reducing spending by $1.2 trillion is not enough to prevent the credit downgrade that everyone now knows is coming sooner than later. Standard and Poor's credit analyst David Beers appeared on Fox News with Neil Cavuto and made it clear that the debt ceiling increase was not the overriding issue to avoid a downgrade.
This issue has to disappear after this latest contrived crisis to raise the debt ceiling. The only good thing to come out of this created crisis is an open dialogue about the out of control spending in Washington. The main issue is that the Republicans did not force the issue to get deeper and more sustained cuts.
Standard and Poor's and Moody's are both saying they need to look at the debt deal before they decide if the deal is enough to save the United States' coveted Triple-A rating. Earlier, both credit agencies said the magic number for spending cuts and reduction was $4 trillion according to a story appearing on Fox Business News today.
Congress and President Obama will get nothing significant done as a legislative body. It is time to once again to turn this Congress over and vote out all incumbents in November 2012. These backroom deals will not end and until then, this country is doomed to fail. The call from the voters is clear: Reduce the debt ceiling by 2012 or retire.
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