Schiff: Debt Deal is a Blank Check - CNBC

Schiff: Debt Deal is a Blank Check - CNBC
By: Peter Schiff
President of Euro Pacific Capita

By supposedly compromising to raise the debt ceiling, Congress and the President have now paved the way for ever higher levels of federal spending. Although, the nation was spared the trauma of borrowing restrictions, the actual risk of default existed solely in the minds of Washington politicians. But the real crisis is not, nor has it ever been, the debt ceiling. The crisis is the debt itself. Economic Armageddon would not have resulted from failure to raise the ceiling, but it will come because we succeeded in raising it. This outcome falls along the lines that I had forecast (See my commentary, "Don't Be Fooled by Political Posturing" from July 9th).

Both parties are now pretending that the promised cuts in spending outweigh the increase in the debt limit. But the $900 billion in identified cuts are spread over a decade and are skewed toward the end of that period. There are an additional $1.4 trillion in cuts that the plan assumes will be identified by a bi-partisan budget committee. But similarly empowered panels in the past have almost never delivered on their mandates....

This article expresses my understanding much better than I can.

Some other areas to investigate are as follows:

1. Baseline budgeting vs $0 budgeting--Congressman Louie Gohmert, Mike from East Texas, and Rush Limbaugh
Could it be Government "Budgeting" incorporates a 7% annual baseline increase for the US Government--CBO considers anything lower than this a cut which will be offset by a Tax Increase
2. Bush Tax Cuts==New Tax Increase.
Could it be that if they are left to expire, then that will be a Tax Increase.
Could it be that if they don't expire, then they will trigger a Tax Increase because the CBO projected them to expire.
3. GOHMERT: But, for example, there's no enforcement unless the OMB director starts -- files a sequestration report. Now, call me cynical but suppose the OMB director is a very good friend of the president and the president just says, "'Eh, don't issue a report." There's no enforcement mechanism.

I still believe that the only positive option was to not raise the debt limit.
Congress has folded and is irrelevant for the remainder of the Obama Regime.

What this legislation does is add certainty to continued uncertainty. Is that Insanity?