Here are the six things you need to know about all that great work they have been doing up on Capitol Hill.
#1.) The plan will raise the debt ceiling by around $2.1 TRILLION. If we hadn’t raised it, the U.S. would’ve defaulted and been unable to pay bills here and abroad.
–Interest rates could’ve gone up. Social Security checks, military paychecks, and other government payments could’ve been delayed. The stock market could’ve taken a huge hit . . . and it could’ve had a catastrophic impact on the global economy.
#2.) The deal means raising our debt ceiling, which is already unthinkably high, but it also includes about $2.5 TRILLION in spending cuts. And sets things up so the ceiling can’t be raised by more than the cuts.
#3.) As for where those cuts will come from . . . that has yet to be determined. The deal sets up a bipartisan congressional committee that will have to figure it out. The defense budget definitely looks like a candidate.
#4.) If that committee can’t come up with $1.5 TRILLION in cuts to make over the next 10 years, some programs will AUTOMATICALLY see cuts. The specific programs haven’t been released, but they won’t include Social Security or Medicare.
#5.) While the deal has been approved by Obama and the congressional leaders, the rest of Congress still needs to vote on it today.
#6.) The compromise will keep the U.S. from defaulting, and that’s good . . . but NO ONE is really happy. Obama, Democrats, and the Republican Speaker of the House, JOHN BOEHNER, expressed disappointment over the deal.