In the first sign that the battle is being joined against the automatic trigger cuts on the discretionary and not just the defense side of the ledger, 3,000 organizations have banded together in a giant coalition to oppose the measures.
“There is bipartisan agreement that sequestration would be devastating to the nation,” the alliance writes in a letter to members of Congress. “The nearly 3,000 undersigned national, state, and local organizations — representing the hundreds of millions of Americans who support and benefit from nondefense discretionary (NDD) programs — couldn’t agree more. Congress and the President must work together to ensure sequestration does not take effect. We strongly urge a balanced approach to deficit reduction that does not include further cuts to NDD programs, which have already done their part to reduce the deficit.” [...]
“NDD programs are not the reason behind our growing debt,” the group added. “In fact, even completely eliminating all NDD programs would still not balance the budget. Yet NDD programs have borne the brunt of deficit reduction efforts.”
One point the coalition, which includes the AARP, CARE, Greenpeace and literally thousands of others, makes is that Congress already cut $1 trillion from the discretionary budget through spending caps as part of the debt limit deal last year. This additional $600 billion would cut a part of the budget already gnawed to the bone. And the knock-on effects from cuts to the discretionary budget, which affects virtually every corner of the private economy, would be far larger than going after the bloat in the defense budget, which inevitably makes its way into the pockets of contractors and goes no further.
There are signs that Congress is starting to think about how to supplant the entire trigger, rather than just the defense cuts. A coalition this broad and deep could be an asset in that fight.
The best thing I’ve heard in the past several months is despair from Erskine Bowles that the country will “go over the fiscal cliff.” If he’s upset, it means his preferred policy of an unbalanced deal that strikes at the heart of our safety net programs is not gaining much traction. But the impact of the spending side of the fiscal cliff would be significant. So hopefully, Congress can trash this whole deficit reduction project until a recovery takes hold, or at least use revenue gains to paper over the trigger cuts and get themselves out of the box they’ve set up.




7 Comments

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The rational solution is simply repeal the moronic sequestration bill. It’s one of the dumbest things this President and Congress have ever done. The premise that the country faces a fiscal debt/deficit crisis is false, so there was no reason to have a mandatory slashing event to solve the non-crisis.
There are reasons to cut defense programs, based on ethical,legal, security and fraud reasons, but those reasons have nothing to do with solving some phony deficit problem. Repeal the sequestration legislation and start over without the phony notion of a crisis.
But USG bond yields are soooo HIGH means that the “market” has lost complete trust in the USG ability to pay its debts, and the rating agencies have lowered the rating on USG debt, so it’s clear that U.S. needs to impoverish everyone into prosperity.
/s
* U.S. 10-year government bond yields were flat at 1.47 percent, not far from a record low of 1.44 percent hit in June, with analysts saying trade would be led by Europe in the absence of any major economic data.
Who cares? The USD is going done the toilet anyway. At best repealing the automatic cuts will delay the collapse by a few months. Or it might accelerate it. There’s so many fingers in the pot trying to manipulate things that there is no economy theory that can predict what will happen from what actions anymore.
All we can know for sure is that things are about to change radically, and that you all had better have your garden and chickens ready; you’ll be living off them soon.
The real truth is the fed government controls yields on treasury bonds. In fact, we don’t need to ever issue a bond. The bonds are savings accounts that people demand to earn risk free interest. That is how it should be looked at. If interest goes up it is only bc the government allowed it (for the most part).
They should trash the entire deficit reduction program. It is nonsense. But as long as the so called leaders of this country subscribe to this insanity……
David, I’m sorry but it’s really too early to start playing into the kabuki.
All the breathless news between now and next January of some sort of “struggle” in D.C. between the “good guys” and the “bad guys” will be just tales authored by PR firms, full of sound and fury and signifying nothing.
The social safety net will be gutted. That’s what our owners want and that’s what their tools in D.C. will give them.
All else, no matter how well meaning the grassroots participants, will be pure kabuki.