Budget Line With No Spine

"You want to know about politics in Washington? Four words. Watch your back, Jack."
--Admiral Jim Greer (Clear and Present Danger)

In FY 2010 the federal govt spent $3.5 trillion--a deficit of $1.3 trillion over receipts. Last night the Congressional leadership came to terms on a 2011 budget, a budget that was due last October, that forecasts a paltry $38 billion in reduced spending vs 2010.

Today, the president and house/senate leaders are talking about what a grueling process it has been, with both sides have to make serious compromise.

All for a 1% reduction--a forecast reduction at that. Laughably sad.

Clearly driving this process was fear on both sides of being associated with a govt shutdown.

If politicians will not make the necessary reduction out of fear of taking govt apart, then we face certain economic dislocation ahead.