Texan
Well-known member
...Mike? :shock: Because when they use the word, "unsustainable" in talking about our debt, they sound EXACTLY alike. :lol:
Let's try posting this again to see if you Obama supporters are interested in commenting on it today.
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Obama calls US debt unsustainable
Lita Epstein
May 15th 2009 at 3:30PM
Anyone who understands the U.S. debt picture won't be surprised by President Barack Obama's statement that U.S. deficit spending is "unsustainable." It's an easy thing to say, but a much more difficult problem to fix.
Satisfying the crowds in a Rio Rancho, New Mexico, town-hall meeting today he said, "We can't keep on just borrowing from China. We have to pay interest on that debt, and that means we are mortgaging our children's future with more and more debt."
No one will disagree with the obvious statement, but the obvious answer -- to stop borrowing -- is a bit tougher. The U.S. is not a position to do that with the current economic crisis. While Obama talked about raising taxes on the wealthy, he certainly can't touch that issue during the current recession. The last thing he wants to do is risk slowing down what little economic activity does exist.
But Obama's attempts at finding budget cuts haven't been very successful so far. The only details we've seen about cutting the federal budget were his plans to eliminate or reduce 121 programs for a total savings of $17 billion. As Republicans accurately point out, when you couple that with an $81 billion increase in spending, the $17 billion looks like a joke.
But even more important than that political squabbling are the rising health care costs that are busting the budget. With government guarantees to Medicare and Medicaid, trillions of dollars will need to be spent. If a comprehensive health care bill does pass, that could be a real start toward fixing the growing debt problem.
Right now about 84 percent of the federal budget is for entitlements, defense, homeland security or interest on the debt. If Obama really wants to have an impact on getting control of deficits, he must look closely at all these areas for cuts. You can't fix the problem just focusing on the 16 percent in discretionary spending. Yet that's all Congress has done recently.
I'll believe Obama is serious about fixing deficit spending when he starts to tackle entitlements, defense spending and homeland security spending. Surely there's waste in those parts of the budget.
http://www.dailyfinance.com/2009/05/15/obama-calls-us-debt-unsustainable/
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US Debt “Unsustainable”: Obama
Barack Obama told a New Mexico town hall meeting Thursday that American debt is “unsustainable,” leading some to believe the US may repudiate its debt.
“The long-term deficit and debt that we have accumulated is unsustainable. We can’t keep on just borrowing from China or borrowing from other countries,” Obama said. “We have to pay interest on that debt and that means that we’re mortgaging our children’s future with more and more debt.”
Obama’s admission is the first indication that the US can no longer service its obligations, and may eventually default on its debt.
China owns the largest owner of American debt at US $744 billion worth of US government securities. Obama raised the idea that China and other foreign entities would eventually stop buying those obligations.
“And when that happens, we will really have to raise interest rates to be able to borrow and that will raise interest rates for everybody,” Obama said.
http://www.therightperspective.org/2009/05/15/us-debt-unsustainable-obama/
Let's try posting this again to see if you Obama supporters are interested in commenting on it today.
==========================================
Obama calls US debt unsustainable
Lita Epstein
May 15th 2009 at 3:30PM
Anyone who understands the U.S. debt picture won't be surprised by President Barack Obama's statement that U.S. deficit spending is "unsustainable." It's an easy thing to say, but a much more difficult problem to fix.
Satisfying the crowds in a Rio Rancho, New Mexico, town-hall meeting today he said, "We can't keep on just borrowing from China. We have to pay interest on that debt, and that means we are mortgaging our children's future with more and more debt."
No one will disagree with the obvious statement, but the obvious answer -- to stop borrowing -- is a bit tougher. The U.S. is not a position to do that with the current economic crisis. While Obama talked about raising taxes on the wealthy, he certainly can't touch that issue during the current recession. The last thing he wants to do is risk slowing down what little economic activity does exist.
But Obama's attempts at finding budget cuts haven't been very successful so far. The only details we've seen about cutting the federal budget were his plans to eliminate or reduce 121 programs for a total savings of $17 billion. As Republicans accurately point out, when you couple that with an $81 billion increase in spending, the $17 billion looks like a joke.
But even more important than that political squabbling are the rising health care costs that are busting the budget. With government guarantees to Medicare and Medicaid, trillions of dollars will need to be spent. If a comprehensive health care bill does pass, that could be a real start toward fixing the growing debt problem.
Right now about 84 percent of the federal budget is for entitlements, defense, homeland security or interest on the debt. If Obama really wants to have an impact on getting control of deficits, he must look closely at all these areas for cuts. You can't fix the problem just focusing on the 16 percent in discretionary spending. Yet that's all Congress has done recently.
I'll believe Obama is serious about fixing deficit spending when he starts to tackle entitlements, defense spending and homeland security spending. Surely there's waste in those parts of the budget.
http://www.dailyfinance.com/2009/05/15/obama-calls-us-debt-unsustainable/
==========================================
US Debt “Unsustainable”: Obama
Barack Obama told a New Mexico town hall meeting Thursday that American debt is “unsustainable,” leading some to believe the US may repudiate its debt.
“The long-term deficit and debt that we have accumulated is unsustainable. We can’t keep on just borrowing from China or borrowing from other countries,” Obama said. “We have to pay interest on that debt and that means that we’re mortgaging our children’s future with more and more debt.”
Obama’s admission is the first indication that the US can no longer service its obligations, and may eventually default on its debt.
China owns the largest owner of American debt at US $744 billion worth of US government securities. Obama raised the idea that China and other foreign entities would eventually stop buying those obligations.
“And when that happens, we will really have to raise interest rates to be able to borrow and that will raise interest rates for everybody,” Obama said.
http://www.therightperspective.org/2009/05/15/us-debt-unsustainable-obama/