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.”
Gee, you just figured that out? After roughly three months and change in office, it just dawned on you that after bleating about George W. Bush's budget deficits, putting forward a budget with three times his projected deficit (and then exceeding THAT!) was unsustainable?
Well then how come you pushed (and still back) the budget that led to this?
Earlier this week, the Obama administration revised its own budget estimates and raised the projected deficit for this year to a record $1.84 trillion, up 5 percent from the February estimate. The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. The White House Office of Management and Budget also projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.
Or pure George Orwell.
You choose, dear reader.
Mr. Obama proposed a whole $17 billion in budget cuts across a $3,500 billion budget? 1/2 of 1% Mr. President, and you call that "meaningful" reductions?
That's called LYING LIKE A BEARSKIN RUG.
Here are some hints to you Mr. President:
Home prices must contract to where they are affordable - not on payment, but on price. This means no more than 3x incomes on the median. Prices are still far too high.
The Government must stop spending more than it makes. And not just the Federal Government either - the states too. California, The Federal Government and otherscannot afford gold-plated pensions and other similar game-playing for its employees, union or not.
The practice of using debt to pull forward demand is unsustainable whether that happens at the government or private-sector level.
That other politicians have done dumb things does not make them smart when you wrap them in a different politician's flag.
Despite your claims of "fiscal responsibility" you are in fact standing on the podium bare-butt naked in terms of the truth, the epitome of the emperor sans clothes.
Your Chief of Staff has made clear that your political philosophy is that "no crisis should be allowed to go to waste", a clear indication of intent to not find fiscal sanity but rather to rape the taxpayer to the maximum extent, using George Bush's former Presidency and a financial crisis that Democrats are just as responsible for as are Republicans as cover. I understand Chicago "machine" politics Mr. President; I ran a company in that corrupt cesspool for more than a decade. You and Rahm are not fooling me and for those who are fooled, you better wake up - and fast.
Entitlement programs, especially Social Security and Medicare, must be fixed. But "fixed" means ending "Entitlement Nation", because these programs are mathematically unsustainable. So are all other manner of "big government" programs. As just one example you have refused to cut off the hundreds of billions of dollars that are loaded onto State and Federal governments to cover the cost of illegal immigrants and the intentional tax evasion both they and those who employ them practice.
We must flush the bad debt out of the system and we muststop pretending that there is a solution to these problems that can be found in "big gubbermint" borrow-and-spend when the math makes clear that this is flatly impossible and that all such roads lead to the same place: ruin.
There are only two ways to get a debt millstone off your neck - pay it off or default it.
It is mathematically impossible to pay off all the bad debt in the system. This leaves only one choice: defaulting the unsustainable private sector debt, cutting government spending back to what is sustainable plus a surplus (without accounting games) and repudiating the so-called "promises" that are economically impossible to keep.
This means telling Bernanke to cut his crap out right now and to divest The Fed of all the garbage on its books or you will send a Bill to The House to revoke his charter and appoint a special prosecutor to hold Bernanke and the rest of The Fed Board accountable to the law (a law that prohibits The Fed from buying MBS and holding off-balance-sheet assets.)
It means telling Pelosi to stuff a sock in her yap; "borrow and spend" is dead.
It means telling The Republicans and Democrats in Congress that you're going to flood the Halls of Congress with special prosecutors tasked with arresting, prosecuting, and jailingeach and every one of them who received so much as one dollar of what amounts to a bribe in furtherance of fraudulent accounting and phony leverage games.
It means telling the FDIC, OCC and OTS that either they start forcing all financial institutions to account for all unsecured loans against excess capital, directing The FDIC to close each and every bank that invades the mandatory Tier Capital ratio against that standard, and if they do not, you will replace the FDIC, OTS and OCC heads with officials who will.
If you, and the rest of the nation, don't start doing the right things in this regard we will have those choices made for us by those who are paying attention to the mathematics instead of the politics, and we will be faced with a full-on catastrophe.
Time is quickly running out to quit talking in Orwell and start talking in reality.
Your nekkedness has been noted by the public, despite your claim of being dressed in regal splendor.
Here is a little more REALITY the Commercial Real Estate is collapsing, people are losing any value in the biggest most prized possesion that for decades helped the middle class have a little piece of the pie! The 401K's have in reality been Looted all so the obamageddon and the pigs who govern us can pay back their backers like Durbin said they really do own the place. As they continue to Loot the American people the smelly one continues to deceive. I know those who supported him were either filled with Hopenosis or just plain Stupid but as they continue to lose jobs, savings, homes it affects all of us. O-2008 - Depression - 2009 or 2010 but it is coming! My suggestion to those who were wise enough not to follow the deception STOCK UP!