The truth, according to Rep. Ron Paul (R, Texas), is that there are actually no cuts at all in the new plan. ?The ?cuts? being discussed are illusory, and are not cuts from current amounts being spent, but cuts in projected spending increases,? wrote Ron Paul. With only 2% of cuts taking place before the next presidential election, according to Zerohedge, the truth is that Washington is about to pass ?a bigger budget than ever? despite heavy rhetoric, said Ron Paul, who put it like this:
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[The debt ceiling deal] is akin to a family ?saving? $100,000 in expenses by deciding not to buy a Lamborghini, and instead getting a fully loaded Mercedes, when really their budget dictates that they need to stick with their perfectly serviceable Honda.
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- Ron Paul
On the flip side is liberal economist Paul Krugman, who in his New York Times opinion column called the deal ?a disaster.? Krugman notes that the economics of the plan are completely flawed given that cutting spending in a weak economy will lead to further weakness. Indeed, it will actually worsen the budget situation, making the economy weaker and reducing revenues.
http://blogs.forbes.com/afontevecchi...ng-deal-sucks/