“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.”
No shit, Sherlock. For those of you who have been paying attention, that has been the unifying message of the Tea Parties (The President is echoing the cries of so called 'Right Wing Extremists'? Who knew?). Stop the massive increase of national debt.
But did Obama really get the message from the Tea Parties? I have my doubts. Others do too:
That is to say, if we assume that this speech about "unsustainable" debt signals a new theme that will become part of the administration's economic policy, Obama can only be laying the groundwork for massive tax hikes:
- A. We can't keep borrowing money, because that will "have a dampening effect on our economy";
- B. However, we can't cut entitlement spending, because that would hurt poor people and old people who are dependent on federal aid;
Ergo . . .
- C. We must raise taxes on "the rich," who "aren't paying their fair share."
Nice game Obama has going on. If he was serious, he could immediately curtail any and all of the so called 'Stimulus Bill' and re-draft his budget. Which will happen as soon as a radioactive spider will bite me enabling me to climb walls.
H/T to R.S. McCain who has more.
Cross posted at the Richmond Tea Party.