Chillin' out till it needs to be funded
(Updated) Harry Reid’s plan presumably finally managed to get the nod from Rep McConnell and Boehner as President Obama announced the approval for a Debt deal with $900 bln in approved cuts over 10 years and other $1.5 tln to be put in place if more savings researched and approved by a Joint committee are not found worthy. The cuts are over a period of 10 years mostly towards the end and starting after 2013. The debt limit increases are autmatic as required, one for $1 tln and the rest after the savings are approved before the December holidays
Thus the Democrats have made their point with the longer term debt ceiling increase of $2.4 tln and Boehner is likely to present the finalised plan in the House tonight. Both the House and Senate still need to vote in the plan when Pres Obama signs it into law
Reuters announced the news on the wires an hour back
Rating Agencies S&P have recommended a $4tln in savings to save the US fiscal plans while moody’s is on way to a RWN (Ratings Watch Negative) notation on the US rating.
If the committee doesn’t find at least $1.2 trillion in savings, or Congress doesn’t adopt its proposals, a pre-set array of spending cuts would kick in, including cuts in military spending and Medicare payments to health-care providers.(WSJ.com)
The Tea party Republicans would be under close watch tonight till the deal clears the House