patrick.net

The agreement, announced jointly by Senate Majority Leader Charles E. Schumer (D-N.Y.) and House Speaker Mike Johnson (R-La.), will almost surely face vehement opposition from far-right House Republicans, who had hoped to force steep budget cuts.

That means Johnson caved like a Spelunker. If he got anything like a half-assed deal, WaPo the MIC Paper would be screeching with rage, saying the deal would be torpedoed and that only a far-right extremist could vote for it.

Breaking it down, the deal sets aside $886.3 billion for defense spending, $772.7 billion in domestic discretionary spending, and rescinds $6.1 billion in coronavirus emergency spending authority. The deal also accelerates $20 billion in cuts from the $80 billion IRS funding allocated under the 2022 Inflation Reduction Act.

https://www.zerohedge.com/political/speaker-johnson-announces-166-trillion-bipartisan-package-avert-shutdown

The 2021, pre "Inflation Act" IRS Budget was under $12B. The Inflation act added $80B to the IRS budget over the years. $20B in "Cuts" is only slowing the rate of massive growth of the IRS set by the Inflation Act. It doesn't negate the Dem-Biden 2022 overfunding.
https://home.treasury.gov/system/files/266/19.-IRS-FY-2021-BIB.pdf

According to a Sunday "Dear Colleague" letter, the topline deal - which mostly adheres to a deal reached between the White House and former speaker Kevin McCarthy (R-CA), limits discretionary spending to $1.66 trillion overall. It also secures $16 billion in additional spending cuts vs. the McCarthy deal, and is around $30 billion less than what Senate Democrats wanted.

...
"This represents the most favorable budget agreement Republicans have achieved in over a decade," wrote Johnson,

$16B is about a quarter of 1% of the budget. The best deal in a decade by Republicans is a bar so high, a Parkison's sufferer could easily navigate it.

The insane post-COVID budgets. The DC Plan is to make $6T budgets the new normal.



Back to 2019 or bust.

If it's not a double digit % cut, it's not serious.

AmericanKulak says

The best deal in a decade by Republicans is a bar so high

Look at how they are reducing spending increases. The Republicans have a budget that is less than $30 billion than the Senate Democrats requested.

The Republicans are at least growing the budget below the inflation rate. This is still a victory as far as at least controlling spending.

ad says

$30 billion

$30B is what % of $6T?

It's time to think big.

ad says

AmericanKulak says

The best deal in a decade by Republicans is a bar so high

Look at how they are reducing spending increases. The Republicans have a budget that is less than $30 billion than the Senate Democrats requested.

The Republicans are at least growing the budget below the inflation rate. This is still a victory as far as at least controlling spending.

Except that because of Biden's inflation, the interest on the debt has increased by about $500-600 billion per year because of higher interest rates. This is part of the "non-discretionary" spending. The MSM,. politicians, Treasury Department etc. DO NOT want anyone to even look at this cluster-fuck.

The deficit is SKYROCKETING ! ! ! ! ! ! !

Misc says

The deficit is SKYROCKETING ! ! ! ! ! ! !

Who is actually gonna pay it? I don't think anyone that hasn't run credit checks on tenants realize that 80-90% of people don't pay on some form of debt. You don't have to. It's a business transaction. Student loans are the only bitch. Otherwise once they sell the debt to a debt collector it's over. The creditor has been paid. I don't think people get this.

Thing is our government is the debt collector and creditor. Who do they answer to? No one. We have the assets to back up the debt for the foreseeable future. No one can collect because we could just blow them up. We need to bring the manufacturing back here and the deficit and debt is a joke. People will laugh 10 years from now. Trump would be better, but I'm not biased, Biden's CHIP act has and will be beneficial and hopefully avoid war with China. The rest of the ongoing conflicts he's been a complete dip shit.

Misc says

The deficit is SKYROCKETING ! ! ! ! ! ! !

We will end up like Greece!

WookieMan says

Otherwise once they sell the debt to a debt collector it's over. The creditor has been paid

On pennies to the dollar.

Back from 2009 to 2017 there were complaints of how US Treasuries were providing a real return of no more than 0%. Certificate of Deposits were paying shit also.

The low interest environment helped the federal government to avoid a debt crisis as the debt to GDP ratio increased from around 60% to 107% during Obama's terms. Back then annual inflation averaged less than 2%.

Now it is around 120% and it seems with higher inflation that the government is inflating out of a debt crisis.

We'll see how debt to GDP ratio fares by this late summer.

Good post Patrick, as I've been tracking "non discretionary" spending as far as Social Security and Medicare to explain the rate of increase of total budget of the federal government and comparing to what data is available as far as demographic trends

The Congressional Democrat website published its 2024 budget which calls for about a 5.2% annual increase in total spending, yet government reported inflation is only around 3.2%

That tells me they want to keep discretionary spending at their traditional or legacy levels, instead of figuring out how to get total spending just below the inflation rate for a few consecutive years.

.

AD says

Back from 2009 to 2017 there were complaints of how US Treasuries were providing a real return of no more than 0%. Certificate of Deposits were paying shit also.

The low interest environment helped the federal government to avoid a debt crisis as the debt to GDP ratio increased from around 60% to 107% during Obama's terms. Back then annual inflation averaged less than 2%.

Now it is around 120% and it seems with higher inflation that the government is inflating out of a debt crisis.

We'll see how debt to GDP ratio fares by this late summer.

Treasury Dept just had its best T Bill auction since 2007. 30 yr bonds!

Patrick says

Lol. I paid my fair share. Just under that amount. Not including other federal, state and local income taxes... Fuck a horse god fuck...