In a column posted today on Bloomberg Views I suggested a way to resolve the budget impasse. It starts with the fact that about $6 trillion in deficit reduction is needed over 10 years to get to balanced budget.The proposal is that the President and the Congress agree now to $2.5 trillion spending growth reductions and increase the debt limit by the same amount. The question about how to close the remaining $3.5 trillion gap–tax increases or more spending reductions–is then left to debate next year as part of the 2012 election.
This chart–which I have used before–shows the feasibility of the idea. In a speech on April 13 President Obama already suggested about $2 trillion in spending growth reductions. So we are almost there.
obama doesn’t realize that any dept. ceiling increase regardless how large will be short term. america is burnin through so much cash so fast that u can’t really can’t print or borrow it fast enough.treasury will burn through 2-3 trillion in a year maybe two