While Iran Receives Billions From Lifted Sanctions, the U.S. Military Is Cut by Billions

The fact that there will be no U.S. aircraft carrier in the Middle East this fall is an interesting development that is worth noting. It would be the perfect time for Iran to launch an attack on Israel and for Obama to duck his obligation of protecting the tiny Jewish state. Ironically enough, the Iranian nuclear deal forces America into defending the Persian nation.

 

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The Iranian Army (Photo: Tima/Reuters/Newscom)

 

There are many reasons to think that the Iran nuclear deal is an awful agreement. One of those being the $150 billion (or so) that Iran will receive as sanctions are lifted.

In 2011, President Obama signed the Budget Control Act (BCA) into law which was an attempt to rein in federal spending. While federal spending must be curtailed, unfortunately the BCA did little to control the real drivers of federal spending (the entitlement programs) and instead imposed disproportionate cuts on the national security budget. These cuts were backed by a mechanism called sequestration, which automatically cuts every budget line if spending is too high. Continue reading

US default risk is real, Washington warns Wall Street

Money lenders trust America so implicitly that they generally dismiss the risk it won’t pay its debts. But in the US capital, fears are growing that political dysfunction might trigger the unthinkable.

A few years ago one would have said, ‘Don’t be silly. Of course they will raise the debt ceiling.’ But one can’t say that any more.  

Government veterans from both political parties are aghast that lawmakers openly speak of managing a default that could be triggered next month if they don’t authorise more borrowing. Continue reading