The emerging House bill would provide for an immediate
$1 trillion increase in the government's $14.3 Trillion
debt limit in exchange for $1.2 Trillion in cuts in
federal spending. The measure also envisions Congress
approving a second round of spending cuts of $1.8 Trillion
or more in 2012, passage of which would trigger an
additional $1.6 Trillion in increased borrowing authority.
This could be a trap since the Obama Administration may
determine the cuts. $1 Trillion would be from ending wars
in Afghanistan and Iraq - leaving only $200 Billion to be
cut in the first round. The cuts on the last continuing
resolution ended with a budget with less than 1% in cuts.
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