In a speech fit for a tea party, President Obama called the current government debt load "unsustainable." From 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.The White House predicts this years deficit to be $1.89 trillion. Don't just read past that. The White House predicts a deficit of $1,890,000,000,000!
“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.”
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.
Heritage warned us of this back in March just three weeks before the April 15th tea parties.
It looks like the CBO's numbers in March reflect the White House's numbers today. Since that is the case it would not surprise me at all if the CBO revises its March projections to predict a deficit closer to $2 trillion.
Nevertheless, the White House's projection is startling.
Obama's $1.89 trillion deficit
- requires over $12,000 in taxes from each American worker in addition to the taxes they already pay
- is greater than the GDP's of Austria, Sweden, Switzerland, Finland, and Hong Kong combined.
- is the size of the entire 2001 United States Federal Budget.
Odds that Obama actually gets it? Zero. In the same speech he continued to trumpet Obamacare which could cost the taxpayer an additional $1 trillion.
So not to worry. Nobody bumped the thermostat in hell; it was just more campaign-style rhetoric from the ever-campaigner himself.