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Rockntractor
05-15-2009, 12:57 AM
Obama Says U.S. Long-Term Debt Load ‘Unsustainable’ (Update2)
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By Roger Runningen and Hans Nichols

May 14 (Bloomberg) -- President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg&refer=worldwide

Duh! Did he just now realize this?

lacarnut
05-15-2009, 01:20 AM
Geithner must have put a littler birdie in this dunce's ear. The O is going to make a crisis out everything. So by announcing this looming catastrophe, the only solution will be to tax the shit out of everyone.

Rockntractor
05-15-2009, 01:33 AM
Geithner must have put a littler birdie in this dunce's ear. The O is going to make a crisis out everything. So by announcing this looming catastrophe, the only solution will be to tax the shit out of everyone.
The longer he can put off a recovery the more powerfull he will become. What better way to destroy an economy than taxing it to death.

AlmostThere
05-15-2009, 02:41 AM
Geithner must have put a littler birdie in this dunce's ear. The O is going to make a crisis out everything. So by announcing this looming catastrophe, the only solution will be to tax the shit out of everyone.

My guess is this was the plan all along. It ain't rocket science that printing money 24/7 will drive inflation through the ceiling. Once America's buying power is totally decimated by inflation, while being taxed out the wazoo, Obama will be able to do whatever he wants. And stupid Americans will thank him for his radical but necessary moves in order to save us. :mad:

lacarnut
05-15-2009, 10:00 AM
My guess is this was the plan all along. It ain't rocket science that printing money 24/7 will drive inflation through the ceiling. Once America's buying power is totally decimated by inflation, while being taxed out the wazoo, Obama will be able to do whatever he wants. And stupid Americans will thank him for his radical but necessary moves in order to save us. :mad:

I think that the worm will turn if the economy does not get better and I am NOT talking about the stock market. People will wise up when their standard of living goes down. He can not print enough to satisfy those that have lost their jobs and lives have been turned upside down. The economy will determine the outcome of the elections in 010/012. I think at the present time there is a great deal of buyer's remorse.

Ben Bernanke's book regarding a recession are to print a lot of money flooding the market which will devalue the dollar. It will have the effect of reducing the deficit because the dollar will be worth less. Countries holding our debt are concerned about that. Supposedly jobs will come back. Inflation will rase its ugly head, interest rates will shoot up and the economy will start to improve. That's what the Feds might think but the killer to this theory will be higher taxes.

Odysseus
05-15-2009, 07:11 PM
The longer he can put off a recovery the more powerfull he will become. What better way to destroy an economy than taxing it to death.

Except that he doesn't believe that this will destroy the economy. Obama is a leftist, and like most leftists, he probably believes that socialism isn't so much unworkable, it's just never been done correctly, and he's the one to do it. Things will go south in a hurry when his economic policies hit the fan in another year or so, and when they do, expect Obama to complain that it's everyone's fault but his.