Obama Says U.S. Long-Term Debt Load ‘Unsustainable’
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.”
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Us conservatives have been railing against government spending for many, many years and have been saying it is not long term sustainable and will cause huge inflation and high interest rates.
We will see if he actually does cut government costs significantly (25-50%) or is another lip service politician which says one thing and does another, like add a few trillion more in government spending for universal health insurance for the 3 or 4 million American citizens which do not have insurance for the long term.
Adding the 12 to 15 million uninsured illegal immigrants will bankrupt any government system. The other 12 to 15 million which are already eligible for government insurance (SCHIP or MEDICAID) and do not use those programs. That is 25 to 30 million of the 45 million the Single Payer Health insurance people talk about, then there are 10 million transient people (between insurance coverage) and 5 to 10 million who do not choose to buy health insurance.
Don's Conservative Politics 
There is a NYT article on the US debt today (see post at http://euandus3.wordpress.com/2009/11/23/12-trillion-in-debt-living-beyond-our-means/). It hasn’t been just after the financial crisis of 2008 that the US Government has had unbalanced annual budgets… And consider consumer “use” of credit cards? Is there something about our society–about ourselves–that we are missing because we are in it? (e.g. a fish doesn’t “see” its water). I don’t think we are digging deep enough.
Comment by euandus2 — November 23, 2009 @ 12:57 pm