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Government Spending Cuts? No. Spending Increases.

Written by Gary North on February 26, 2013

We have head about the trillion dollars in automatic spending cuts. It’s headline news.

That’s part of the decade flim-flam. The government always reports one full decade’s cuts. But it never, ever mentions in these reports regardung the Congressional Budget Office’s estimate of total federal spending over the decade: $47 trillion.

You mean that the proposed trillion dollars in cuts are 2% of projected spending? You’ve got it.

This assumes that there will be cuts. There won’t be. There will be automatic add-ins that will offset any cuts. How large are these add-ins? About $110 billion more than the proposed cuts. Forbes reports:

The sequester has been advertised as “cutting” discretionary spending over a ten year period by $995 billion. After inflation adjustments and exempting more than a trillion dollars of defense and non defense discretionary spending from the sequester, the CBO projects  (in its Table 1.1) discretionary spending to increase by $110 billion over the decade. There is no actual $995 billion cut after the CBO applies its magic adjustments. Rather there is a $110 billion increase.

The government treats voters as if they were naive rubes. This usually works.

The politicians assume that the financial media will go along. This usually is correct.

Continue Reading on www.forbes.com

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17 thoughts on “Government Spending Cuts? No. Spending Increases.

  1. Rabelrouser says:

    As usual, the financial delemia of this nation raises its ugly head.
    The truth of false currency, that which is nothing more than a thought to "add more" to the currulation, and then a ledger mark on a computer; continues to evade the conversation. But yet is the absolute reason for the problems.
    Yes, the American Citizens are "naive rubes"; uneducated to the depth and complexities of the root cause of the financial crisis that IS AMERICA. It is too much for them to comprehend, so they refuse to try.
    Its not a "SEXY subject" in that it takes thought provoking attention, nor is it the simplistic "political blather of the day" that is really manipulated as a distraction to their sensibilities.
    The angle of the financial slope downard is growing steeper and greater daily, and in a moments notice will become a straight fall that ends in a bottemless pit of dispair, chaos, and total failure.
    But yet, it wasnt worth the time or effort to understand, be educated about, and correct.

  2. jmsmaxwell says:

    The bottom C-casteration is nothign but a flim-flam load of BS. Big woop $85 billion dollare cut to the federal planned
    spending. That amounts to a miscule drop in the bucket in the proposed spending this year and what is almost
    comical is that it is spread out over 10 years. In real terms that equates to less than 1/10 % of the GDP. In Real
    terms it means simple this, the proscatinor in chief will have that much less money to squander over 10 years. Hopefully
    he won't be around that long unless all hades breaks out and we just decide we want a kenyan dictator to put us all in
    chains. This is a plan that he demanded be included int he Budget control Act in 2011 and said he would veto any
    thign that did not include it. Well he got it, He signed it and now He stuck with it. BUT WHERE IS OBOBO? HE out on
    the campaing trail again whining about those mean old Republican making him actually make a decision as to where
    to make the cuts that will cause the most harm to our economy rather than show signs of actual leadership and make the
    cuts as painless as possible.

  3. jmsmaxwell says:

    He is campaigning for the 2014 elections and will do all he can to try and levi blame anywhere
    else but where it lies, squarely upon his lack of leadership and his corrupt POS in Congress harry reid. Of course his
    pet pigs in the nedia will wallow and squirm trying to make him walk on the mud wallow he has created.

  4. Peter Anderson says:

    Hear hear.

  5. If all the terrible cuts as they are being called by the politicians actually occur it will be because they made them happen. If the sequester is the only way to get the politcians to cut spending and undoubtedly it is, then I am all for it.
    If you are out of work and are losing your house and car and furniture and family, are you really worried about a small cut when you are already bleeding to death.
    This should be a picture for all the voters to look at and see what kind of incompetent people we have in the government. Will the politicians fix this? No they will not. Why do we see the same people in the government for so many years? Because if you think enough of a job that pays 100,00 or so to spend 10,000,000 to get it there has to be something very wrong. I know that those are dollars donated by concerned citizens that want big favors in return, but is that what government is suppose to be about? He that bribes the most gets the most. The average person has no lobbiest and can ill afford to bribe anyone.

  6. The so called president of the united states is not going to lead and if he does it will npt be in the right direction. He has never been anything but a set up all the years of his political life and he has had aid in sealing his college records, he took 2 years and a couple million dollars to come up with a fake birth certificate that a mexican coming across the border could have bought for himself and would have been more believable. He was a community organizer before that, I don't know who he was working for at that time, but I do know now the unions are for communisim.There was a stink about Clinton that he didn't inhale what about obama, they say he was heavy into drugs. We should just go on and say king obama. I prefer hemeroid with ears.

  7. Seymour Kleerly says:

    How can a "dictator" be a weak leader?

  8. Gary, your math is pretty horrible. No wonder you and Ron Paul failed.

    Has anyone noticed that we've gone from a $1.4 trillion deficit to a mere $800 billion, and that it's still shrinking? Guess who did that? Obama.

    And now Republicans and Tea Partiers want austerity – the same austerity that Greece went through – but yet, we shouldn't be like Greece because they royally fucked up. So, which is it? Austerity or not?

    The fact remains – further cuts while recovering from a recession will put us BACK into a recession, and we will end up like Greece: broke, flailing and in more trouble than we could imagine.

    But you want that, don't you?

  9. This piece proves that both parties are concealing the truth. They are in lockstep with one another.

  10. WE THE PEOPLE amendment….SIGN IT FAST 8:58 AM

    are you getting angry yet about how you are being IGNORED by your own representatives? All it takes is one small effort to change things.

    Here is something we all CAN DO to take our govt. back from the corporations….our biggest foe has been OUR OWN apathy. We LET them hijack our government.

    **** please sign the petition on this link….I love that they actually proposed this —but the establishment will NOT support it unless we MAKE them.

    this amendement will need sustained support by the people or it will not pass….get ready for the fight of your lives

    Pass this on…it's important
    I hope I can count on you to sign it, even better if you join the movement because that shows a commitment.
    Ha ha…it will scare the pants off them if we all get on this bandwagon.

    The only time a government changes course is when the people make them….otherwise we become SHEEP.

  11. If Dr. Seuss wrote about the sequester….very clever….also very accurate
    I am so sick of both sides playing these games. The republicans should just let it pass and give him enough rope to hang himself. If he cuts wisely it will be beneficial to everyone…..if he makes cuts to punish the people they will rebel against his administration. He can't win if the GOP smartly lets the sequester happen. It was OBAMA'S idea….a case of unintended consequences awaits him. Already blaming this on the GOP is falling flat. He has no way out unless they GIVE it to him. I hope they don't fall for the bait….again


    Morning Bell: Obama and the Seuss-quester

    On Pennsylvania Avenue, right near the end, there lived a President who wanted to spend.
    He knew spending meant power, so hour by hour, he thought up more spends from his Washington tower.
    “I’ll spend without limits; I’ll spend without blame! Raising taxes to pay—that’s the name of the game.”
    Down the street, though, a House filled with thriftier folk had a budget to pass, or the country’d go broke. “We can’t spend all day; we’ve got bills to pay! Let’s keep deficits and higher taxes away.”
    The Senate next door to the House just refused. “We don’t like your budget. We’ve got some bad news: The President says we can spend all we want, and we’ll simply raise taxes whenever we choose.”
    So they spent and they spent and they borrowed some more. And when all that was spent, they spent same as before.
    But not everyone thought the spending was nice. In the House and the Senate, some spenders thought twice. “We’ll cut down on spending. We have a bad feeling…” then—SMACK!—right on schedule, they hit the debt ceiling.
    Then the President’s office, confronted with debt: “If it’s cuts they want now, then it’s cuts they shall get. We’ll threaten such cuts that NO one would take, and show them that cuts are not smart to make.”
    “This will make Congress move. We’ll just float out a tester… broad, haphazard cuts that we’ll call the sequester.”
    The Senate and even the House said, “Okay! That will motivate us to find a good way. We’ll figure this out and stave off those cuts—to allow them to happen, we’d have to be nuts.”
    So the deadline was set, but the spending went on. A year and a half had soon come and gone. The House passed a budget; the Senate said no; the President very much enjoyed the show.
    “Spend higher! Spend faster! Grow the welfare rolls! Soon, love for the spending will show up in the polls.” He even raised taxes, but it wasn’t enough—the levels of spending grew too fast to keep up.
    “Don’t you mind the sequester,” he told Capitol Hill. “You said you would fix it, and I’m sure you will.”
    But they could not agree on ways to cut spending, and before they knew it, the sequester was pending.
    “Oh no!” they all cried. “We can’t let these cuts stand!”
    And the President said, “WHO thought of this terrible plan?”
    They didn’t remember his plan all along. He distracted them with his spending-cut song. Now he returned to save them from harm, and to keep them forgetting all but his charm.
    So the President said with a glint in his eye, “You tried to cut spending. I saw how you tried. But it’s just too painful—I’m sure you can see. From the beginning, you should have listened to me.”
    “I’ll save you all from the spend-cutters’ axes. You see, the solution is just to raise taxes.”

    We don’t know yet how this story will end. Will Congress raise taxes and continue to spend? We need a balanced budget with smarter cuts—reforming entitlements will take guts.
    Let the President know that we’re onto his plan. Share this story with as many people as you can. http://blog.heritage.org/2013/02/22/obama-sequest

  12. Ha ha…Carney already admitted it was from the whitehouse

    Obama looks like a FOOL trying to blame republicans

    Republicans look like fools trying to compromise with him…they have THE POWER OF THE PURSE

  13. WEAK on upholding the constitution
    from my perspective at least

  14. We will have austerity either way. Ron Paul has been on a tirade against this wild spending for 20 years….go back and look at ALL the youtubes where he lectured congress and it was IGNORED.

  15. jim schafer says:

    every timem i find myself in a financial crisis, i simply begin a tithing program(giving 10% of income BEFORE taxes are removed, and believe it or not within a few months, i am back on track, but i continue to tithe, because when i stop, i find myself back in the same financial rut that He lifted me from(just like sin)

  16. Texas Chris says:

    Sequestration is like losing weight by gaining 5 pounds when you though you'd gained 50.

  17. Texas Chris says:

    They only have the power they're willing to use. Boehner will not use House prerogative to cut spending, because he doesn't want a Democrat House to one day do the same to a Republican president.

    He's an idiot. Democrats would NEVER use House power to limit spending.