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Political Theater: It Turns Out That The Republicans And The Democrats Were Both Lying To Us And That The Real Budget Cut Number Is Far Less Than $38.5 Billion

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Guess what?  The Democrats and the Republicans are both lying to us again.  So what else is new?  The truth is that the great “budget crisis” which supposedly took us to the verge of a government shutdown was just a whole bunch of political theater.  Even the Associated Press is declaring that our politicians used “accounting sleight of hand” to reach the $38.5 billion budget cut figure.  Not that $38.5 billion was an impressive number to begin with.  $38.5 billion would just be one percent of the federal budget.  But once you strip away the accounting charades, the real budget cut number is somewhere around 14 billion dollars.  It turns out that the “budget cuts” include money left unspent from previous years, earmarks that were going nowhere, unused census money and programs that Obama was already planning to cut.  The more you examine the “budget deal”, the more it becomes obvious that the Republicans and the Democrats had no intention of doing anything serious about our debt problems.  The U.S. government is still going to run a record-setting budget deficit in 2011 and both the Democrats and the Republicans are to blame.

So should we be surprised that our politicians have been lying to us again?

Of course not.

But if something is not done about our soaring debt it is absolutely going to crash our financial system.

According to the IMF, the U.S. government will have to borrow an amount of money equivalent to 29 percent of GDP this year alone in order to finance its budget deficit and its maturing debt.

That is what you call a crisis.

But neither political party seems the least bit serious about the national debt.

The Republicans are proposing even more tax cuts without saying how they are going to pay for them, and they even tucked an increase in military spending into the “budget cut” deal.

The Democrats don’t seem to want to cut much of anything.  In fact, most Democrats seem to believe that government debt is not much of a crisis at all.

Our politicians love to talk about “cutting the budget”, but nothing ever gets done.  Both parties have been promising us “fiscal responsibility” for decades but both parties have never delivered.

Sadly, the American people have not held our politicians responsible for this.

This latest episode just reveals how much of a joke Washington D.C. has become.  In the 8 days leading up to the “historic” $38.5 billion budget deal, the U.S. national debt increased by $54.1 billion dollars.

Our politicians are standing by and doing nothing while the financial future of this nation is being destroyed right in front of our eyes.  It is now being projected that by the year 2021, interest payments on the national debt will amount to $1.1 trillion dollars a year.

Fortunately, some bloggers out there are starting to wake up to just how pathetic this latest “budget deal” really was.

For instance, Tim Fernholz of the National Journal recently posted the following….

For example, the final cuts in the deal are advertised as $38.5 billion less than was appropriated in 2010, but after removing rescissions, cuts to reserve funds, and reductions in mandatory spending programs, discretionary spending will be reduced only by $14.7 billion.

In fact, some conservative bloggers are becoming absolutely furious with the duplicity of the Republican party.  In a recent article on Business Insider, John Ellis really let John Boehner have it….

It turns out that the budget agreement that all parties were hailing this past weekend as a “great achievement” is in fact a joke.  Any Republican who was elected with even a sliver of Tea Party support is now duty-bound to vote against it on Friday.  Every 2012 Republican presidential hopeful is now duty-bound to demand that it be voted down.

But Boehner is already saying that it is time to “move on” and that he is really going to “get tough” during the next battle.  Boehner is claiming that the “war” over the debt ceiling is going to be about “trillions” instead of “billions”.

The American people are certainly in the mood for something to be done about our debt crisis.  According to a new NBC/WSJ poll, the vast majority of Republicans and the vast majority of independents do not want the debt ceiling raised.  Even Democrats are roughly split on the issue.

John Boehner is promising that the Republicans will not agree to raise the debt ceiling without “serious steps in the right direction”.

So what pathetically low number will cause John Boehner to cave in this time?

Obama is already taking a strong stand on the debt ceiling.  He is demanding that the Republicans send him a “clean bill” and is warning that they must not “play politics” with U.S. government finances.

On Monday, White House press secretary Jay Carney stated that “the consequences of not raising the debt ceiling would be Armageddon-like in terms of the economy.”

You know what?  To a certain degree Carney is right.  If the U.S. government hits the debt ceiling the financial markets will likely go haywire.  That would cause the big boys up on Wall Street to start putting tremendous pressure on Boehner.  There is no way that Boehner would watch chaos unfold on Wall Street and not end up flinching.

Not that Boehner was ever serious about cutting the federal deficit.  He was not serious about it during the Bush years and he is not serious about it now.

This is all just a whole lot of political theater.

Meanwhile, most Americans are not even paying attention to all of the financial fraud being committed by the “fourth branch of government”.

Of course the Federal Reserve is not actually part of the federal government at all.   But they do get to spend trillions and lend trillions without ever having to get the approval of Congress, the president or the American people.

For example, most Americans don’t realize this, but the Federal Reserve has been handing out hundreds of millions of dollars in nearly risk-free loans to their friends and even to the wives of their friends.

Unfortunately, the Federal Reserve is above the law and is not accountable to anyone.  In fact, we can’t even get our politicians to authorize a comprehensive audit of their books.

The truth is that our system is soaked in so much fraud that there is no way that it will ever recover.

We have turned our backs on the principles of our founding fathers and so now we pay the price.

The U.S. national debt is now over 14 times larger than it was 30 years ago and it is currently rising by well over 4 billion dollars every single day.  This debt will destroy our financial system.  We are stealing the future from our children and our grandchildren.

It is so sad to see what is happening to America.

So what do all of you think about what is going on in Washington D.C.?  Feel free to leave a comment with your opinion below….

  • Mario

    It’s just a matter of time and Ka-Boom!!!!
    God help us, because no one else seems to care.
    The only question I have is are people that dumb down that they can’t see what’s happening, it’s like there a sleep or in some fantasy land and think that this will all just go away.
    A lot of people are in for a big surprise soon.

  • Apologist49

    Just a small correction – I think you meant Billions, NOT Trillions in the summary sentence you gave:

    ” But once you strip away the accounting charades, the real budget cut number is somewhere around 14 TRILLION dollars.”

    I follow this blog every day and it has made a tremendous difference in how I think about our economy and the future. As a student of history, I definitely see the troublesome long-term trends that we as a country have been going down for a long time now. It is good at least to know what will happen and hopefully get ready for the hard times down the road.

    Thank you very much for your time and your hard work on writing this blog and the other one on the End of the American Dream!

    • Michael

      Thank you for visiting the site on a regular basis.

      And I appreciate everyone that caught my mistake. I am certainly not perfect. I actually try to really proofread what I write but sometimes mistakes slip by.

  • austrian_man


    “somewhere around 14 trillion”..typo there..i think you meant billion..

    actual budget cut is 14 billion..what a joke!

  • mondobeyondo

    Well, that was quite an entertaining dog and pony show the Republicans and Democrats put on.

    Yeah, that prelude was kind of boring, huh? Don’t worry, the main event will be coming soon. The ringmasters are scooping up all the elephant and donkey poop as we speak!

    P.S. Most of you will NOT like the main event. It has something to do with the total collapse of the U.S. economy, and life as we know it now. Trust me, the opening act was the best part of this whole drama. Those of you who paid to see the main event…well, in a couple years, you will get your money’s worth, believe me. Prepare yourselves accordingly.

  • SilverGluton

    You wrote 14 TRILLION above in the 1st paragraph when you actually meant 14 BILLION!!!

  • Hognutz

    End the Fed! Vote out the beltway trash!

  • Mark

    Check your b’s and t’s in first paragraph: But once you strip away the accounting charades, the real budget cut number is somewhere around 14 trillion dollars.

    Obviously: ’14 billion dollars’ was meant.

  • In paragraph #1 you say ” the real budget cut number is somewhere around $14.Trillion dollars” In subparagraph #1 Tim Fernholz states
    ” discretionary spending will be reduced only by $14.7 Billion ” Which is it???

    Besides that “What else is new”

  • Alice


    We need our republic to be reinstated ASAP.

  • William

    This is all a scam. Here is just one example:

    The USA will BORROW money from foreigners and give that money to Israel, while throwing elderly Americans under the bus.

    Now you see that the situation is HOPELESS. But, our savior Bernanke will tell you the annual inflation rate is under 3% when, in fact, it is three times that.

  • Gary2

    We have a revenue problem much more than a spending problem.

    Hedge fund billionaire’s pay only 15% capital gains tax. It needs to be 50%.

    Corporations pay little or no tax-think GE/BOA. They need to pay much much more.

    The rich pay the lowest amount of TOTAL taxes ever. They need to be taxed hard at least 60%.

    When I see these things happen I will then believe the right is concerned about the deficit.

    Bernie Sanders is the only person in the senate brave enough to address this.

    There is nothing “bold” about Paul (Eddie Munster) Ryan’s plan that takes from the poor and gives to the rich.

  • Matt

    I think what is going on in D.C. is as bad as what led to our founding in the 1700’s and its high time for a ‘new founding’, for a new Tea Party, a new Revolution, and a new fresh beginning with a new cast of characters, following to the T the old original Constitution plus its Amendments. Its time our military lets all those other countries defend themselves and comes back home and protect the homeland period.

  • samseau

    yawn. I think the republicans should just let the democrats increase spending, so this whole thing will collapse faster. it’s gonna happen no matter what at this point, so we might as well get it over with.

  • Jeff

    Even this bloody Liberal agrees that we have been on a path to self-destruction ever since Ronald Reagan was sworn in.

    I have heeded the advice of the webmaster and cut my own overhead drastically, in anticipation of the coming meltdown.

    I don’t think that our leaders have the guts to do what is right for the USA. They have become too hard-headed to vote against their own narrow self-interests to fix this mess.

    Don’t waste your time praying and hoping that things will work themselves out. Cut your lifestyle back, reduce your debt level and TRY to pay your home mortgage off if you possibly can.

  • Mr Carpenter

    There is a viable alternative, if we truly wish there to be one.

    If you claim to be for Christ and are not voting for what His beliefs would have you to vote for, then you are throwing away your vote.

    If you claim to be for our Constitution and are not voting to support said document, then you are throwing away your vote.

    However, if you like the status quo, and are pleased with the “progress” of our nation over the past 150 or so years, please do continue to vote for the Repugnicans and Demoncrats…

  • How about 14 billion in the first paragraph. Not 14 trillion.

  • What’s the big surprise? All politicians (beyond very small, local offices) are beholden to big business interests. It’s the only way to get elected.

    A small corporation (a small business that’s incorporated for the tax advantages, but remains a small business in administration) generally takes on the personality of its founder. However, once a corporation reaches a certain size, it tends to take on a personality of its own, and that personality almost always shows traits that, in a natural human, would be those of a psychopath.

    And these are the interests that are effectively running our country. Is it any surprise that the little people are being systematically crushed and ground to powder?

  • hipshotpercusion

    When the creditors from other countries come in, we just tell them to take the politicians and their families into bondage for the debt they ran up.

  • zimtran

    The US will collapse worse than the Soviet union, It will begin with the total collapse of US financial credibility and end in political disunion, it will result in twenty years of war and turmoil on the territory of the former United States worse then Afganistan and make the Road Warrior look like a day at the park. Eventually there will be a bunch of petty dictatorships in the east of North America and a several Chinese imperial colonies on the Pacific cost.

  • Bob

    Accounting sleight of hand. How appropriate. Our government representatives these days are making the country’s future disappear.

  • The fundamental, inescapable problem with the United States is that it is a government over several nations. It is more properly considered an empire instead of a nation. Because of this it is incapable of reform. The term ‘American’ is so nebulous that it can mean any number of mutually contradictory things. It is a term of manipulation. The only thing holding this empire together is an increasingly dysfunctional central government. A government that soon will not be able to purchase political support or complacency through taxes or debt and it will come apart at the seams. Its constituent parts hate each other. The United States is heading for the dustbin of history. Its course was set a long time ago.

  • Tim

    Great article as always but at the top you had 14.7 trillion and you meant billion, but then again the way thngs are nowadays i don’t blame you for a second on the messup. Trillion, Billion, quadrillion? what’s the difference? We are so F^%**&%

  • Piglet

    “Meanwhile, most Americans are not even paying attention to all of the financial fraud being committed by the ‘fourth branch of government.'”

    This is so true. People aren’t paying attention, they don’t know what’s going on, and most importantly, they don’t WANT to know. Those who give any thought to it just say they’ll vote for Republicans (or Democrats, depending upon the person) and that will address fix the problem. They don’t recognize that politicians serve special interests, not the peasantry, and voting for either major political party is useless. What’s coming is so awful that people would rather just watch brainless TV programs, effectively burying their heads in the sand.

  • FreeWilly

    I believe you incorrectly published the term “14 trillion” when you in fact meant “14 billion”

    • Michael

      Arrgh I hate when I make mistakes like that.

      Thank you for noticing that one.


  • Wobbly-1

    How I feel about Washington huh? Well, I feel that the establishment has sold us down the river. We cannot ever get square with our debt commitments, and raising the debt ceiling is just going to let them continue this ponzy scheme. We need to hold the line and hold it now. Yes, it will bring the house of cards down. Yes, it will create a financial disaster. But, we are already in a financial disaster, we just don’t want to admit it. We are in econimic free-fall to a horrible end yet we close our eyes and say, “see it’s all ok”. We need to stop the game and settle up with the fact that we, as a nation, are out of money. We need to realign back to a backed currency (imagine that, if you didn’t have more money than you have gold…what a concept. Living within the means one has….). It is time.

  • liberranter

    This is all just a whole lot of political theater.

    Wow, what a blinding flash of the obvious!

    Seriously, can it really be possible that functioning adult human beings with IQs north of the zero mark expected anything other than this?

  • DownWithLibs

    Michael – Maybe you can explain something to me:

    What would a gov. such as ours have to gain by impoverishing most of it’s citizens? What would be the endgame of having a hoard of poor, staving, unproductive and dependent people?

    This has troubled me for sometime. I’ve heard of it happening in history and a lot of people believe that our gov. is pulling the same thing. What would be the reasoning for such a move by leaders of a country? Is it more to do with being sociopathic, uncaring and enjoying watching people suffer while the elected among them enjoy life high on the hog? Is it just a form of enslavement?

    Hope you can enlighten me? 🙂

    • Michael

      In the end it is usually about power.

      But don’t look at our politicians. Look at the people that control our politicians.


  • Bob

    Downwithlibs – my take is that FDR was elected three additional times with the theme song “Happy Days Are Here Again” – even though they were not (from what I understand).
    I am sure that Obama would be happy to blame the crisis on the Republicans (as FDR did), so that he can stay in office.

  • Msrk Panzer

    CBO: Budget deal cuts this fiscal year’s deficit by just $353 million, not $38 billion touted!!!!

    What the F**k??!!!!

    CBO: Budget deal cuts this fiscal year’s deficit by just $353 million, not $38 billion touted!!

    The budget deficit is projected at $1.6 trillion this year.

    The CBO study confirms that the measure trims $38 billion in new spending authority, but says many of the cuts come in slow-spending accounts like water-and-sewer grants that don’t have an immediate deficit impact.

  • Juswakinup

    Aaarrgggghhhh I can’t take this any more! Im do sick if the politics! It is utterly clear to me after listening to the president that our country is doomed! And I’m a frigging optimist!!!

  • John S

    Ha ha! You sound surprised by the honesty of our politicians. The $14.7 billion in cuts will delay the necessity to raise the Debt Limit by 6 or 7 hours.

  • andres olguin

    You were on RT. Congratulations!

    • Michael

      Thank you – I didn’t realize anyone was watching. LOL


  • Sean

    I am always wondering when to actually “pull the trigger” and start panicking for the sake of my family. We have a small stock (maybe a month) but is that enough? When do you start preparing for the worst? I just don’t want to be one of the herd that rushes to the store only to find the shelves are empty and there is no plan in the future for them to be restocked anytime soon………


  • Happy reader

    Don’t worry about it Michael. At least you are actually writing about the issues unlike the MSM.

    I’m sure it will reach a Trillion before all is said and done anyway.

  • mondobeyondo

    @ DownWithLibs

    It’s the Golden Rule. He who has the gold, makes the rules.

    It’s more about power and control, rather than just money. The elite have all the money they want. There are only so many mansions and yachts they want to buy. Money is only a means to an end. The ultimate goal is power and control over the population.

    Once you’ve got the people under your thumb, you can get pretty much anything else.

    The people who are truly running the country (it’s not Obama and Co.) don’t care about you, your health or well being, your education, your family and friends, or your future, your children’s or grandchildren’s future. They are blood sucking leeches who want what you have. When they do get it, they will kick you to the side of the road and leave you to die. You are not important to them. Neither is national soverignty. In fact, the international elite would love to see the USA wither away. They are trying very hard, and I’m afraid they may have the winning hand, or at least an ace up their sleeve.

    That is why it’s so important to fight this plutocracy/corporatocracy, before it completely strangles what is left of our once beautiful nation. Their aim is to enslave the entire world. They’ve done a great job of enslaving the third world. Looks like it’s the turn of the industrialized West now.

  • Paul

    Downwithlibs This is part of a master plan so when the economy crumbles and everyone is desperate for help, in comes the new currency and the formation of a new world order.

  • The greatest lie of all is excluding the unfunded liabilities of the US Federal Government. If you include these numbers, the National Debt is greater than $200 trillion.

    Here is the second greatest lie: Balancing the US Federal Budget will restore middle class prosperity in America.

  • 007

    If this is the best the republicans can do, God help us. We will just keep spending and printing money until inflation eats us alive. Seems a safe bet to keep investing in oil and gold until they outlaw owning them. Let’s just hope the system holds together as long as possible. We are sailing in a sinking ship and no one cares to even admit there is a problem, much less trying to do the work to save the ship.

  • Terry

    Of course both sides lied. They always huff and puff but in the end cut a deal. They are in bed together.
    In the end those of us who survive the breakup may find ourselves less oppressed by the pieces of the FUSA.
    If the banksters evict me from my present home (after as many delays as possible) I guess I will squat in one of the many empty homes available. I will not have to go far (won’t have to leave the neighborhood for a while). Eventually the banksters will get tired of evicting me. In any case, I will not have to concern myself with maintenence–just move on.
    If enough people stop buying and paying for our homes the banksters will see that there is no gain in chasing us out because there are no buyers for these houses anyway. They are surely worried that homeowners will stop paying mortgages in masse (more so than at present).
    The threat of forclosure does not carry the weight it once did. Note that people do not slink away in the dead of night like they used to. They make the banksters evict them (after numerous legal delays).

  • RaXzorX

    Revelation 21:8

    But the fearful, and unbelieving, and the abominable, and murderers, and whoremongers, and sorcerers, and idolaters, and all liars, shall have their part in the lake which burneth with fire and brimstone: which is the second death.

  • impeachRonPaul

    Republicans will give all the breaks to the rich and watch the middle class disappear.

  • DownWithLibs

    Thanks to everyone who answered my question. It’s been a real head-scratcher of late!


    The time to “pull the trigger” is NOW. Right now put a plan together. Read survival blogs (such as this one!:-))and any books you can get your hands on including ones that will give you a first person perspective of what has happened in other countries, such as Argentina, when their economies collapsed. This is a good starting point. Make a list of foods your family likes, foods that have good stable shelf lives.

    Don’t forget extra prescip. meds. and other first aid supplies that may be hard to come by in an emergency of ANY type. Really think about what your family will need to be safe and somewhat comfortable. Don’t forget water and a means to make, say, river water safe to drink. Think bleach,iodine tablets and extra fuel to boil it. (You can find the iodine tabs at most department stores with camping gear.) One thing I did was make out a list of everything I could possibly think of, even things that I know I might not be able to do, then I just set about slowly adding them to my stash. Say when you grocery shop, toss some extra cans of soup and t.p. into the cart – that sort of thing. And what ever you do, don’t get stressed. Make it doable and try to have fun. You would be surprised at how clever you can really be! They even make all sorts of “gadgets” now that will help you in your preparations. You don’t have to do this perfectly, but just START NOW!!!!

    Oh, and don’t panic. That will only slow you down.

  • The Beast

    @Matt: you wrote: “Its time our military lets all those other countries defend themselves and comes back home and protect the homeland period.”
    I’m baffled on how naive you are. The American military forces are not there to defend those countries, they are there to occupy them.
    When was the last time the US Forces ever do any good to anyone but their shadow masters? And do you think that the existence of the federal government and all of its subsidiaries are meant for the good of American People? They exist to serve their shadow masters.
    As for who are these shadow masters, I know nothing of their exact identities. But I know the Master of these masters. It is the Devil himself. Otherwise, why would they do all that they have done in destroying humanity?

  • Democrats suck at opposing anything – they live in a permanent Stockholm Syndrome state to the GOP. Republicans lie 24/7 and weak-kneed Dems try to reason with them.

    We help Americans find jobs and prosperity in Asia. Visit for details.

  • Gary, Springfield, VA

    We recently saw our Federal Government go through the painful process of agreeing to cut a small percentage of the total Federal budget. They agreed to cut some $38B ( Current Federal spending INCREASES the National debt by an average $4.08B (yes BILLION) every day. Given that it took about two weeks of wrangling to arrive at that $38B decrease, the debt increased approximately $57.12B during that period! Hailed as victory in agreeing to cut the debt, we still lost as a Nation.

    With the total National debt of approximately $14,279,943,291,072,000.00 (fourteen trillion, two hundred seventy nine billion, two hundred ninety one million and seventy two thousand dollars) that $38B represents .00027% of the total debt ( If you personally were putting $10,000 on credit card debt each year that would be the equivalent of you cutting your spending by $0.027 (2.7 cents).

    We are spending ourselves into failure as a Nation. We cannot continue. I have heard people say ‘that is the Government debt’ – well folks, WE ARE THE GOVERNMENT! At this point each of you reading this, as well as your parents, your spouse, each of your children, each of your grand children and every other CITIZEN of this Country owes $46, 009.04 of the total Federal debt. A shocking number? How is your State doing? Is the budget balanced or is your State running a debt also?? You own that too.

    Even if we go after the corporate giants like Exxon Mobil and Wal-Mart and all the rest of the Fortune 500 companies and confiscate 100% of their combined total profits, we would have only about $391 billion-which would cover only about 10.5% of the Federal budget. Even if we taxed everyone who makes more than $250,000 at 100% we would only generate another $1.414 trillion, which would cover less than 5 months’ worth of Federal spending. Even if we then cut all spending on the Afghanistan and Iraq wars, eliminated all foreign aid, nationalized all the homes in Beverly Hills, and took all the wealth of Bill Gates and Warren Buffet, we would still fall short of paying our annual bills by about $12 billion.

    We don’t have a tax problem, we have a spending problem. Republicans and Democrats alike are spending OUR MONEY, the PEOPLES WEALTH, at an unsustainable rate and have been doing so for the better part of the last 75 years. We have been sleeping and letting them get away with this. We The People are in charge, but we have been asleep at the switch. Take ownership of your Republic NOW! Contact your representatives NOW and let them know this is unacceptable. They work for us and if they do not act responsibly let them know they will have to work for someone else. In the next election cycle we need to focus on those conservative candidates who are willing to make the tough decisions to cut the budget and eliminate the programs and spending that are driving us into default. What our enemies could not do to us by force we are doing to ourselves. The debt is the greatest threat to our Republic. This is going to be painful, but if we do not do this we will fail as a Nation.

  • Ryan

    keep up the good work I don’t even waste any time on the mainstream “media” for even basic news whether national or international news for sources…all independent sources where I get all my real news…I don’t know about anyone else but I’m headed for costa rica it’s sad but our country is &&&&

  • Afi K. James

    In the words of jesse ventura, let’s abolish political parties and I Mean it.

    I Really don’t give a ******* anymore, america is dead as a doornail and it will never recover again.

  • The sad part is that $38.5 Billion is a drop in the bucket compared with our national debt.

    The only thing we can do is take action to get our personal finances in order, so that the governments actions don’t impact us as much.

    The Elevation Group

  • The battle between Democrats and Republics is just a puppet show to distract us while the financial elite bankrupt our country.

    You can’t depend on the government anymore, so you need to prepare for the upcoming economic collapse and start buying water, long term food storage, silver, guns and ammo, etc.

    Free Food To Go Co-Op

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