TeamObama is taking the country toward insolvency. This is insane policy. Inevitably rates must rise thereby increasing the interest payments on the $13 trillion debt. Otherwise no one will buy it. I think America's glass is half empty. We must reign in federal and state spending.
In this fiscal year through June 2010, interest costs are $354,861,738,070.57.
"New estimates from the White House on Friday predict the budget deficit will reach a record $1.47 trillion this year. The government is borrowing 41 cents of every dollar it spends."
We are headed toward fiscal disaster without a recovery in the economy. We simply cannot continue to spend at this rate and remain solvent.
Vote for fiscal sanity in November.
1 comment:
I think almost everyone in both parties agrees that the deficit is not sustainable and needs to be reduced. The difficult question that is being debated is how to find the right areas to reduce that make sense from an economic stand point and this is a very complicated issue because not all spending is equal. Some spending is stimulative, some spending can over the long term have a multiplier effect in terms of future revenue generation (for example certain spending that creates jobs in the future or that stimulates consumer production). Therefore the important question is where and when to make cuts that will not dampen the economy (at a sensitive time) or that will long run be detrimental to future economic growth. Bernanke just testified eloquently about this for the last two days. Thougthful politicians (almost an oxymoron) are giving this a great deal of thought. Over simplification of the complexities may be satisfying at some level but what is needed is deep economic analysis so that the right balance is achieved. I believe there is actually (despite the name calling to try and score political points ) a consensus about this that will result in balanced reductions to the deficit and modest tax increases that will slowly dampen the downward pressures on the economy and will over time result in a reduction in the deficit to more sustainable levels. In that sense the current budget is not insane, it is a reflection of where we are not where we are headed.
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