The $39 billion spending-cut deal reached by Washington last Friday night...fairly oozes with cynicism, gimmicks and voodoo accounting...[and] boils down to the following pathetic truth: The US government is currently borrowing 43 cents on every dollar it spends, meaning that it is issuing about $6 billion of new Treasury debt every single business day. During the balance of FY 2011, this allegedly largest spending cut in history will not eliminate one day’s worth of new national debt!...
The trillions in new bonds issued by Uncle Sam in recent years have not been financed honestly out of the peoples’ savings -- either here or abroad. Instead, they have been absorbed by the Fed and its chain of monetary roach motels: foreign central banks where the bonds go in, but never come out. In fact, upwards of $4.5 trillion, or 50%, of all the publicly held debt every issued by the US treasury is now held by central banks and has been bought and paid for with printing-press money.
Complete commentary viewable here.