The US Joint Select Committee on Deficit Reduction holds a hearing on Capitol Hill in Washington, on Monday. The bipartisan congressional committee formed to address the deficit issue and known in Washington as the 'super committee' needs to break an impasse between Republicans and Democrats to reach a deal by November 23 to reduce the US budget deficit by at least $1.2 trillion. Jonathan Ernst/ReutersWhat Happens If Deficit Super Committee Fails? Maybe Nothing. -- National Post
The latest rumor in Congress is that the massive $1.2 trillion in automatic cuts – designed to take effect if the deficit super committee fails to come up with its own plan – might never happen.
If the super committee fails, will there be any real consequences? Or will a future Congress take one look at the draconian automatic cuts set to take hold in 2013 – $600 billion to defense, $600 billion to entitlements – and say, no way.
That’s the latest rumor in Washington this week, as the 12-member joint deficit reduction committee struggles to find a $1.2 trillion package of cuts that can pass the panel and the Congress.
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My Comment: While the politicians ponder on what to do .... the Pentagon is still trying to figure what it should do.
As to what is my take .... politicians will do what they have been doing for decades .... kicking the can down the road for the next group who comes to power. BUt my gut is telling me that kicking the can down the road is becoming harder and harder with each passing year.