Next month, the Joint Select Committee on Deficit Reduction, a 12-member subset of Congress that Congress created to make the hard fiscal choices Congress has failed to make, is expected to propose $1.2 trillion in cuts from projected spending during the next decade. This week, Rep. Ron Paul (R-Texas), who is seeking the Republican presidential nomination, unveiled a plan to cut nearly that much in 2013 alone, followed by similar cuts in the next two years, yielding a balanced budget by 2015.
The contrast between the so-called super committee’s goal and Paul’s plan shows how pathetic official Washington’s gestures of fiscal responsibility are. Paul’s detailed numbers refute the myth that the budget cannot be balanced without raising taxes while challenging his opponents to put up or shut up.
via Ron Paul’s budget cuts put U.S. on right track – Chicago Sun-Times.
Following the release of the yesterday’s revised CBO projections, we, together with anyone with half a brain, were stunned by the ridiculous assumption that somehow the US government can grow its revenue by 50% (!) in the span of 3 years. Since absent a wholesale increase in taxes, which won’t happen ahead of the Obama presidential elections, this has a snowball’s chance in happening, the only recourse to the government is to cut spending. But where? Most major governmental expenditures are non-discretionary, yet spending has to be cut… Which brings us to the topic of this post: most likely the biggest sacrificial lamb will be companies on the dole of not only the US government, but certainly foreign governments (where unlike in the US, austerity is rampaging without mercy). Courtesy of data prepared by Lehman’s Mark Rothman we present the companies whose revenues are comprised at least 50% of sales to governments, both foreign and domestic.
via Presenting The Companies Most Exposed To A Slowdown In Government Spending | zero hedge.
“When the federal government spends money,” Paul’s overview of the plan explains, “those are resources that are drained from the state, diluted by way of large Washington bureaucracy, and sent back to the school districts with red tape and strings attached.”
“Washington provides at best, eight, nine, ten percent of money,” Duncan countered, “The vast majority of funding comes at the state and the local level, about 90 percent, and that is as it should be. What we all need to do is not invest in the status quo, but invest in this very different vision.”
via Paul taking $500 billion hack at budget; Education Secretary warns of ‘grave harm’ | WHAS11.com | Louisville News, Breaking News | WHAS11.com | News for Louisville, Kentucky.