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U.s. Govt $38 Billion In Cuts? Make That $353 Million

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http://www.zerohedge.com/article/38-billion-cuts-make-353-million

Warning: people on blood pressure medication are urged not to read this.

Yesterday the media had a field day when it was uncovered that the hard fought $38 billion in budget "cuts" which almost caused America to shut down were in reality $14 billion. We, thus, can't wait to find out what the response will be when it is uncovered that the actual cuts were... $353 million. Yes: the ongoing functioning of the government was a pawn in a soap opera whose benefit to the US debt is $353 million, or about what Goldman's trading desk makes in less than one day.

From Washington Post:

A new budget estimate released Wednesday says that the spending bill negotiated between President Barack Obama and House Speaker John Boehner would produce less than 1 percent of the $38 billion in claimed savings by the end of this budget year.

The Congressional Budget Office estimate shows that the spending bill due for a House vote Thursday would pare just $352 million from the deficit through Sept. 30. About $8 billion in cuts to domestic programs and foreign aid are offset by nearly equal increases in defense spending.

..........

Speechless yet? You should be. And for those confused how B.H.O. picked the arbitrary number of $4 trillion in "cuts", John Lohman summarizes it best.

How Washington Cuts $38 Billion in 5 Simple Steps:

1. Announce spending bill that claims $38 billion in cuts

2. Wait for CBO to announce it only cuts $353 million 1

3. Realize you only do 0.0093% of what you say 2

4. Divide $38 billion by 0.0093% to get necessary target 3

5. Round to the nearest trillion and announce result

1 : Source: Washington Post, April 13, 2011

2 : $353 million divided by $38 billion

3 : $38 billion divided by 0.0093 = 4.1 trillion

Amazing stuff clearly Obama is following Camerons lead by announcing the govt is having austerity measures which results in govt spending increasing. So far Obama is still holding the claim he's cutting, but I'm sure that $353m will easily become a positive increase.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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