Tuesday, June 22, 2010

two takes on the Budget Process , Neither of them comforting.

From Business insider:

Nightmare! Here Is How The UK's Emergency Budget Would Look In The

The UK's Chancellor of the Exchequer George Osbourne has just
announced a new package of emergency budget cuts designed to cut the
country's deficit. Right now, the UK's deficit stands at 11%
of GDP
. The government's aim is to cut that deficit to 0%
by the 2015-2016 budget cycle

The cuts the new Conservative-Liberal Democrat coalition government
are suggesting are vicious, and cut to the core of the UK's dependence
on its public service sector.

The U.S. may soon have to engage in similar blood letting, if it
wishes to remain viable on international bond markets.

But do not worry the Democtatic leadership has a Monty Pythonian solution:  "Runaway!! Runaway!!"

House Democrat leader Steny Hoyer will
today announce
that the US will not pass a budget in 2010 as “It
isn’t possible to debate and pass a realistic, long-term budget until
we’ve considered the bipartisan commission’s deficit-reduction plan,
which is expected in December." Yet "the House has never failed
to pass an annual budget resolution since the current budget rules were
put into place in 1974.
" The real reason of course is that the
budget would indicate new and unprecedented trillions in deficits, which
would wreak havoc on Democrat chances to contain their upcoming
mid-term election loss to just "landslide" status

See the rest at ZeroHedge

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