Friday, August 5, 2011

What is Exactly in the Debt Ceiling Bill?

 Since many of you commented that you would like to now more about this bill, I researched and found out what is exactly in this bill and what its going to create.

 So now to a list:

  •  In the essence, the bill intends to cut $2.1 trillion over the next 10 years in the money that government can spend.
  • However, the bill also allows the government to borrow more money to pay its bills, the so-called raising of the debt ceiling.
  • Bill will create a committee of 12 members(3 Democratic Senators, 3 Democratic Representatives and 3 Republican Senators, 3 Republican Representatives). This committee will work on figuring out on what programs to cut spending specifically.
  • Bill does not have any tax increases for anyone, thus making it hard to generate revenue.
  • Also, many Democrats have said that the bill will have an effect on social programs.
  • Additionally, the defense budget will also be cut.
In essence, the bill did not really solve anything, all it did is save USA from default at this time and save the AAA credit rating. However, the problem is still there and the special committee created will have to work hard to get the situation resolved.


  1. Thank you for laying it out so succinctly. Hopefully the US will wake up and stop fighting the rest of the world. It's supposed to be the defense budget, not the "attack" budget.

  2. is all of this really worth keeping a perfect credit rating?

  3. Interesting, i honestly dont see the economy getting any better for a while.

  4. gotta borrow more money to pay off the money we borrowed in the first place from a private bank known as the federal reserve

  5. Basically it's the equivalent of making to the limit for legal intoxication higher and saying "we fixed it."

  6. Good post. Lays it out great.

  7. To punish them although not done but meant. Following!