Ah, ya gotta love it. House Speaker Boehner just said this year’s debt ceiling debate will be “no different” from 2011. Does anyone remember what happened in 2011? You know, when the national debt was just $14.2 trillion, compared to roughly $17.0 trillion today?
Yes, even he admits nothing has changed; and in doing so, is arrogant enough to act as if that’s a good thing. Back then, a so-called bipartisan “Super Committee” was formed to find (long-term) budget cuts matching the (immediate) $2.1 trillion debt ceiling increase proposed after the U.S. was stripped of its triple-A credit rating. Not a single cut was achieved, which is why the Budget Control Act of 2011 was passed. Thus, all that was agreed upon were eventual “sequester” cuts that didn’t kick in until after the 2012 elections; which subsequently were sharply cut by the New Year’s Eve “fiscal cliff” deal. Such cuts were subsequently reduced by “necessity” – such as those scheduled for air traffic controllers; and in the end game, the national debt has risen by a whopping $2.8 trillion in just two years – whilst the total “sequester” cuts totaled just $85 billion in fiscal 2013, or a whopping 3% of the debt increase.
Thus, when even the so-called “conservatives” say 2013 will be ‘no different’ than 2011, one should think long and hard of where to invest their hard-earned capital.