CBO Scores Debt Plan: Only 2% Of Total Cuts To Take Place Before Obama Reelection, Half Of S&P Required Savings To Avoid Downgrade…

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From Weasel Zippers:

CBO Scores Debt Plan: Only 2% Of Total Cuts To Take Place Before Obama Reelection, Half Of S&P Required Savings To Avoid Downgrade…

(click image for full size)

Something stinks around here.

Via Zero Hedge:

It was only a week ago that S&P said anything under $4 trillion in deficit cuts would be an automatic downgrade for the US. So according to the CBO’s just released score of the bipartisan budget, the S&P will have to cut its rating of the US in half, since the total budget cuts will be just over 50% of what S&P demanded previously. And here’s the funny part: of the $917 billion in known cuts (the other $1.2 billion is factored but not even the CBO has any clue what it will look like), a whopping 2% in cuts will take places before the Obama election. 2%! This whole charade is there only to make sure the president is reelected. Oh, and of course to make sure S&P does not downgrade the US. Which is where we get back to the fun. THE FUN. Because as it turns out, that whole $4 trillion thing…. S&P was only kidding. “It appears that the perception Standard & Poor’s seemed to harbour, that the U.S. needed to find a $4trn sized package in order to keep its triple A rating, is unfounded. Two credit research reports published today point to the testimony given by S&P president Deven Sharma to the Congressional House Financial Services subcommittee on Wednesday, where he seems to believe his firm has been misquoted in media reports.” There you go: to S&P $2.1 trillion (of which $1.2 trillion may never even materialize) will end up being just as good, if not better than $4 trillion. And that, ladies and gentlemen, is how a rating agency regains credibility and stuff.

Keep reading…

LINK

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Spending reductions (NOT cuts)are backloaded, they will never materialize. 1st yr reduction: measly $21B.  Feds spend $10B A DAY!

Americans have been sold a BILL of goods.

Obama is smiling.  His helicopter is warming up on the pad to take Obama on Air Force ONE to his birthday/fundraising bash in Chicago.

Related link:

Worried about National Debt? Obama Plans Pricey Birthday Bash on Default Day

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“In this present crisis, government is not the solution to our problem; government is the problem.”

January 20, 1981: From Reagan’s Inaugural Address.

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