This past week we found out 2 numbers from the President on he wants to settle the budget deficit and to raise the debt ceiling. The first is he wants $400 billion in new taxes and the second he is willing to cut $1 trillion from the budget over the next 10 years. Now look below at the spread sheet from the CBO which shows the projected deficit for 2011 is $1.4 trillion.
So here is the math $400 billion over 10 years is $40 billion per year of new taxes if it happens. A $1 trillion reduction in the budget over 10 years is $100 billion per year. If we get $40 billion in new tax revenue we will reduce the $1.4 trillion annual deficit by $60 billion or $5 billion per month. If we are running a $120 billion a month deficit then $5 billion a month doesn't even begin to solve the problem that my children and my expected grandson will have to pay if they have any money left.
You have better math send me a comment.
Watch the bond market over the next few weeks and it will tell you the likelihood of meaningful reform.