Posted on 11/04/2009 7:45:26 AM PST by opentalk
White House Budget Director Peter Orszag warned Tuesday that large federal deficits will eventually imperil the U.S. economy because they will lead to higher interest rates and more borrowing from overseas.
Orszag, in a speech in New York, said that deficits, expected to add $9 trillion to the current national debt of $12 trillion over the next decade, are "serious and ultimately unsustainable."
Orszag said that deficit spending was necessary to help boost the economy when unemployment is hovering around 10 percent. But he said that red ink must be stopped as the economy recovers. During a recovery, private investment will again pick up and compete with the federal government for capital.
"It is at this point that we are likely to observe a rise in interest rates, an increase in borrowing from abroad, or some combination thereof due to the deficits," Orszag said. "And it is at that point that deficits will be putting the health of our economy in jeopardy rather than helping to mitigate the most severe economic downturn in more than 50 years, as they are now."
(Excerpt) Read more at thehill.com ...
0bama's gonna pay for it from his money stash. /s
Translation: Here come the tax increases.
How much worse must the real situation be if this is what the Obamoids are warning us about? The Obama-Congressional agenda is unaffordable and unsustainable. We cannot afford to establish Obama’s welfare state, that is all there is to it.
all i can say is: duh
The people of this country know all this......as do the politicians. The difference between the two is that the people care.....the politicians don’t. Except for their cronies. People are getting payed off left and right while the tax payer takes it in the butt. It’s got to stop and stop now.
Hope! And change!
HOW DARE YOU THROW REALITY ON OBAMA’S PARADE?.....
I’m confused- why did the Whaite House let him say this?
YAC - Yet Another Crisis. Maybe Obama can declare another emergency, take some rights away, something?
The media has not been covering this, may be because it will hamper health care Bill. They have been saying the economy is getting better, people want to believe that.
From his speech:
"Orszag blamed the expected growth in debt on the recession and the economic policies of former President George W. Bush's administration"
He deflected any responsibility from Obama.
Typical Kensian remark. That's what prolonged the Great Depression of the thirtys until the War came along. Idiots.
“During a recovery, private investment will again pick up and compete with the federal government for capital”
Are these the same private investors that are evil capitalists that rape and pillage the US economy and that must be taxed into the poor house as punishment? I’m sure increasing capital gains and income taxes will fix those evil investors...oh but wait...who will compete with the government then?
yes, they are trying to manufacture reality
the general belief is.... if you can get the herd to move in a direction towards a mirage, that mirage will become reality.
of course, the problem is they are playing with real numbers... and they are playing against adults that understand what they are doing and are more then glad to take us all down while fleecing the country
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