Inquiring minds are looking at an article on Bloomberg that Repubilcans are ready to cut up to 21 percent of discretionary spending. This suggests that Republican leadership in the House is getting the message of the Tea Pary movement:
U.S. House Republicans plan to try to slash $100 billion from the federal budget as early as January if they wrest power from Democrats in this year’s midterm elections, setting up possible early showdowns with President Barack Obama on taxes and spending.
A Republican House takeover would thrust new committee heads, such as Representative Dave Camp on the Ways and Means panel, into the spotlight within weeks — or days — of seizing their gavels in early January. They would confront quick political tests that could alienate independent voters and Tea Party activists alike, analysts said.
“The major issues are going to be fiscal, and fiscal issues are always contentious,” said Jack Pitney, a political science professor at Claremont McKenna College in Claremont, California.
Unfortunately for the professor, their is no other option other than to cut. And cut with gusto…
The backdrop is a federal deficit that the Congressional Budget Office said totaled $1.29 trillion in the fiscal year that ended Sept. 30. At 8.9 percent of the nation’s gross domestic product, it was the second-biggest shortfall since 1945.
When monetizing the debt becomes apparent, step back. It is going to be a brutal lesson to the politicians and the electorate. The free market can only be held back for so long.
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