Obama said that the current level of deficit spending is unsustainable. He said that there is a risk of skyrocketing interest rates and mentioned that we are mortgaging our children’s future.
Here is a thought, Stop Spending So Much Money! Obama is saying what I (and many, many others) have been saying. The main thing missing from his statement that I have been saying is the fear of a spike in inflation. Of course, I am only in a position to comment. Obama is actually in a position to do something about it. If he understands the grave risk of the massive deficit spending, he should just not spend the money. This really is not that complicated a concept.
If you think throwing bottles off the roof is dangerous, do not throw bottles off the roof. Throwing bottles of the roof while your saying it is dangerous does not make much sense unless you are trying to injure someone. If Obama knows about the danger of this unprecedented deficit spending, why is he pushing the unprecedented deficit spending?
"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.”"
On a related note, Social Security will be a loosing financial equation a lot sooner then previously believed (http://hotair.com/archives/2009/05/13/social-security-already-running-red).