Senate Minority Leader Mitch McConnell (R-Ky.) on Sunday said Republicans will demand steep spending cuts during the next round of budget negotiations.
McConnell, in an interview with ABC’s “This Week,” said President Obama had won all he’s going to get on taxes in last week’s agreement to extend the Bush-era tax rates for most taxpayers.
“The tax issue is, finished, over, completed. That’s behind us now. The question is: what are we going to do about the biggest problem confronting us and our future,” McConnell said.
McConnell said the next round of negotiations over a deal to raise the debt-ceiling would need to include Democratic concessions on spending.
President Obama in his weekly address Saturday warned Republicans that a protracted fight over the debt-limit could have disastrous effects on the economy and said he wanted the borrowing limit raised and issues on spending and entitlements resolved separately.
Does anyone really understand how our monetary system works? Our money is based on debt, the more debt we have the more money in circulation. If we eliminate all debt than we have zero dollars in circulation. You can cut programs all you want, your still going to have problems. Example: The US borrows all its money from the federal reserve. The US borrows $100 dollars @ 5% interest-we will keep it simple. How much money is in circulation? $100 dollars, but we owe $100 + $5 interest=$105 dollars. How do you pay it back? You have to borrow more money, this is called a floating bankruptcy. You can never eliminate debt no matter how much you cut, rather what you will create are more poor simple as that…..