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The Wall Street Journal Senior Economics Writer Steve Moore on the need to cut spending in an effort to rein in the government’s mounting debt.
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-- it's telling you and he's not gonna personal Steve what's going on -- this is ridiculous.
Just to give you one statistic I -- -- -- with great interest to that commentary you know what every one percentage point interest.
Important point increase in the interest rates are right.
What is -- on the ten year about it's now while one and a half percent a little over one half percent.
Let's say we just move somewhere near that.
Historical even even way below their historical -- at 200 basis point increase in interest rates which which would still keep us way below -- historical norm.
Every one percentage point increase in the interest rate.
Increases the debt over ten years by a trillion dollars.
So think about this -- you know that last year they were -- torturing each other at all parties trying to figure out they can cut a trillion dollars if we just have a one percentage point increase that phrase it wipes out any of the savings to work or deep deep trouble financially and I'm struck by exactly what you -- Barack Obama is going around on the campaign trail whether he's -- Ohio.
Iowa Virginia everywhere he goes he's promising more spending not -- On.
It's also like -- drunk blackjack place.
Right -- your hope the next role is gonna go your way -- a double down you dribbled down and it NC.
You lose everything.
Well what what's gonna happen.
Well let me just say that's one of the mythology -- of the Obama campaign and I have a piece in the journal that'll be coming out the next few days on this August sneak preview.
Brett President Obama keep saying ever -- says he's doling out all of this money.
That he has a budget plan that reduces the deficit by four trillion dollars over the next ten years -- I'm sure that you but -- heard him say that.
Now wait a minute if you look at his deficit reduction plan.
The only deficit reduction he has and his plan that I could -- I went through that entire 300 page document.
Was the one point nine trillion dollar tax increase that he wants to vote but Neil I could not find any spending cuts other then.
Reductions in the troops from bringing them home from -- Iraq and Afghanistan.
But on the domestic side of the ledger.
There are no -- at all.
You know -- it to sue the Paul Ryan phenomenon that the raids and that that that that's in -- cited on on the left.
Ryan is hardly some savage -- the budget cutter.
We make of it always the five trillion dollar and I would react that's like three dollars over ten years and spending.
5310 years which would still leave us with 33 and dollars and more spending than we have today.
And that is considered like a financial Frankenstein it's and I and that's what alarms -- that we.
If we are calling that draconian just slowing the growth of spending but we're not cutting and it just slowing the growth that it -- we are in deep do do.
Well the classic example of that deal.
Is Medicare let me just give you a couple numbers on this -- -- -- -- -- even I was surprised by these numbers and I immersed myself and -- Hot right now we're spending about 500 billion that's billion with a B.
Year on Medicare in ten years were scheduled to spend a little over -- -- 850 billion dollars a year on Medicare.
Under the Paul Ryan plan the same why and that the -- this saying is gonna push granny over the -- in a wheelchair.
That plan increases Medicare -- just 800 billion dollars -- 8300.
Billion dollar increase in Medicare over ten years.
Is being described -- as a cut.
Incredible different times we live in my friend.
Mark all I watch it only -- Washington would anybody consider a 300 billion dollar increase in a program.
Eight spending kind of -- -- young man all right -- started.
