The 12-member super committee is Nothing but a Lie!

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The 12-member super committee created to slash the federal deficit is powered by the threat that if it doesn’t come up with $1.2 trillion in savings, automatic, across-the-board cuts will be instituted to reach that same goal, with half of those cuts hitting the Pentagon.

Don’t believe it.

The supposed across-the-board cuts aren’t slated to go into effect until January 1, 2013. Put more simply: They might not ever go into effect.

The automatic cuts — known as sequestration — are often discussed in Washington as if they’re certain, an inevitability that Congress won’t be able to prevent. But on the same day those cuts would go into effect, the Bush tax rates, which President Obama extended for two years, are set to expire, leading to an “automatic” tax hike that is treated in Washington as anything but inevitable. (That the two coming policy changes are approached so differently — cuts are expected; expiring tax breaks for the wealthy are brushed aside — is a window into Washington’s priorities.)

A host of other tax cuts and credits will expire on the same day, including the alternative minimum tax, ethanol tax credits, renewable energy credits and others important to businesses, the wealthy and the middle class.

A lame duck Congress would have two months after the 2012 election to stave off the expiration of both that tax policy and the super committee’s “automatic” cuts.

The most likely scenario: The super committee locks up along partisan lines and, after the 2012 election, bipartisan negotiators deal with the tax cuts and the super committee’s sequestration cuts, along with a basket of other expiring provisions, in one set of negotiations. Democrats will be pressured by the coming sequestration, while Republicans will be motivated by the expiration of the Bush tax cuts. And all of their negotiations will take place in a political and economic climate impossible to predict today.

“All of this at some point comes together,” said Budget Committee Chairman Kent Conrad (D-N.D.) of the Bush tax cuts and the sequestration. “One thing about this place, the paces just keep repeating themselves.”

While many have portrayed the super committee as having some sort of automatic axe, other observers haven’t bought the idea. Stan Collender, a Democratic budget expert and consultant to Wall Street and Washington lobbyists, saw through it quickly, writing a report for Qorvis Communications downplaying the likelihood of the automatic cuts.

There is a high probability that the super committee won’t be able to agree on a deficit reduction deal and that the across-the-board spending cuts that are supposed to be triggered if that happens will NOT go into effect as scheduled in 2013,” he wrote. “Federal budget agreements have seldom, if ever, gone the distance. Instead, they have always been changed, waived, ignored or abandoned.”

“Obama out of his depth” says Trump!

President Barack Obama is out of his depth when it comes to negotiating a way out of the debt ceiling crisis, according to billionaire developer Donald Trump.

And Republican negotiators hold all the cards in the talks, he adds. They are in a no-lose situation where they can either extract a great deal from the administration, or they can delay a decision so the president has to take his unpopular stance up again just before the election.

The only thing the GOP negotiators can do wrong is make concessions just to get a deal through Congress, he said. “Obama’s totally lost,” Trump said. “He’s obviously not somebody who’s made a lot of deals in his life. “The man is not a man who makes deals. The one deal he made was Obamacare and that’s a  disaster for the country.”

Trump was speaking just a week before Treasury Secretary Timothy Geithner’s August 2 deadline day, which he said is not an important date.

Trump said the president is trying to scare people when he talks about a possible default if a deal is not reached by then. “The administration doesn’t want this dialogue to go on much longer because it hurts Obama.

“Look at his popularity. It’s going way down. People are saying he’s got no control over the situation, he’s got no control over the economy, he’s got no control over the country and he’s the president. This is turning out to be Jimmy Carter-esque.”

But the August 2, date is meaningless, he said. “Monday of this week, everything was supposed to crash in Asia and it didn’t,” said the Trump, who earlier this year mulled running for the Republican nomination for president.
“It was supposed to crash throughout the world but it didn’t.

“That threat is highly overblown, and August 2 is no longer the date. There’s plenty of funds to keep it going quite a bit longer. That’s just a date that Geithner came up with mysteriously, so August 2 is not a real threat at all.”

He said Rep. John Boehner and other GOP negotiators are on the right track when it comes to dealing with the debt and deficit crises. “Right now he’s doing fine, but he’s got to stay the course. He cannot fold. This is the time to make a great deal for the country.”

And that deal, he said, should include a repeal of the president’s healthcare initiative, which he said will do untold damage to the economy if it is ever fully implemented.

“It would be a great time to get rid of the really terrible thing called Obamacare,” Trump said. “It’s going to cost tremendous amounts of jobs. I know people that are going to close their businesses over Obamacare, so in the mix, they really should start thinking about getting rid of Obamacare.”

He agreed with Republicans that the most important thing in any final deal is to cut federal spending. “if you don’t cut expenses, we’ll never be in a position to be a great country again.“

“The Republicans are on the right track, I only hope that they continue on this track. They have to get the 100 percent deal because they have all the cards. If they don’t get the100 percent deal, they should delay it or not make a deal at all.”

He said the Republicans are in such a powerful position in the debt ceiling talks that they should either make a great deal or not make one at all. But he warned, “If you make a great deal, Obama’s actually going to end up being much tougher to beat in an election.

The option, he said, would be to delay everything for up to a year. “If that happens, Obama cannot be re-elected.”

Trump claimed the debt crisis battle had turned America into “a laughing stock all over the world,” and now it’s for the Republicans to do a deal to “bring the country back to the greatness it once had.”

But he said the long-running talks will not necessarily lead to a massive stock market sell-off as has been claimed. “Nothing is inevitable,” he said. “If the right deal is made, you’ll have a big uptick on Wall Street.