Obama: Too much debt could fuel double-dip recession

reuters ^ | Wed Nov 18, 2009 7:20am EST | Caren Bohan

[Former Military Chick]

BEIJING (Reuters) - President Barack Obama gave his sternest warning yet about the need to contain rising U.S. deficits, saying on Wednesday that if government debt were to pile up too much, it could lead to a double-dip recession.

With the U.S. unemployment rate at 10.2 percent, Obama told Fox News his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.

[444Flyer]

"Double-dip" is my thing.

[sam_paine]

Now he's finally figuring out that YOU DON't RAISE TAXES IN A RECESSION (DEPRESSION)! What a moron!

On the Job Training for the Affirmative Action TOTUS!

[PreciousLiberty]

“The Fed “drains” liquidity by selling securities in return for dollars.”

Ah, so the foreign government that got dollars in exchange for its better currency would have to buy US securities with those dollars? Seems rather unlikely to me, but I guess we’ll see...

[sam_paine]

Actually, the motel owner is now OUT $100, because he just lost the $100 the hooker gave him. Everyone else is paid off, but he got SHAFTED!

Exactly! Other than that, good story!

[schu]

I am not defending Bam, but it would seem that he has been getting bad advice and now reality is taking hold. The stimuli did not work. Not that plenty of folks did not point this out early on.

He was listening to the Krugman Keynesian's who said it didn't matter where you spent the money, just that you spend. So the idea was to get billions into the economy and like magic things would get better, employment would stay around 8% and by December Federal government revenues would start to show some improvement. They really believed all this mumbo jumbo.

But they spent the money foolishly or not at all, Bam outsourced the stimuli to Nancy and Harry and his radical friends and it did nothing (someone could win a Pulitzer by tracking down the fraud in this one).

So now he is in big trouble, his initiatives are on hold pending an improvement in the economy, there is little wiggle room because they wasted a bunch of $$ and the public will have no more and the world is asking WTF.

So what can he do? His only way out is to dramatically cut government spending, reduce regulation, slash people's taxes and let the free market work. It will be painful. Unfortunately this is unlikely to occur.

schu

[Danae]

It’s a LITTLE LATE now Bambi.

Moron, you and your congress have already created that, it just hasn’t hit yet. But its coming, or have you not noticed China and India buying Gold with US dollars?

Democrats are just living in Lala land.

[Deo volente]

The guy who spent a trillion dollars in his first month in office is warning about debt, while pushing his healthcare boondoggle? This dude is truly schizo.

Not to mention Cap and Trade and Amnesty for illegals. Both are on his agenda going forward into 2010. Can you imagine how much free government services for 25-35 million illegals will add to the deficit? Cap and Trade will not cost the government up front, but it will absolutely destroy business, profits, and tax revenues, thus dealing a crippling blow to deficit reduction.

[longtermmemmory]

Just what did the chinese say to Obama?

He comes back,

talks about tax cuts for small business (yeah sure, trust but verify, I believe real tax cuts when I see real tax cuts)

talks about double dip recession

What did they say that is causing him to poop his pants thus?

[Mr. Silverback]

"It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession," he said.

[evad]

For a "double-dip" recession, don't you have to come out of the first one first? ML/NJ

Zakly!

I'm not sure what a DD Recessions is but I'm certain this Bozo isn't going to do anything to resolve it.

This is just rhetoric for the ears of our owners, The ChiComs.

[Go Gordon]

That must mean we need to spend another $$bajillion.....to stop the coming double-dip recession...

When informed by the chief of staff that in Iraq, we just lost a couple of Brazillians, Obama put his face in his hands and asked the chief "Oh no, how many millions are there in a Brazillion".

[rlmorel]

What’s your name, JLAGRAYFOX?

I want to put it on my PALIN2012 bumper sticker as a running mate...

[Go Gordon]

For a "double-dip" recession, don't you have to come out of the first one first?

You can't blame the second dip on Bush, unless, under the Obama thought process, he blames it on the fix that was implemented to cure the Bush 1st dip.

[Jeff Head]

You are very welcome...and thank you for watching the video and commenting on it. Please spread it around if you are so inclined.

[The Sons of Liberty]

My sister in law sent me this story. I guess the motel owner represents that taxpayer, because he seem to be a hardworking, small businessman but gets the shaft anyway.

[VOA]

Obama: Too much debt could fuel double-dip recession

Rush needs to have some parody adverts made for Obama that are
virtually "re-treads" of the Clinton ones he ran back in the
1990s.

E.g.,
"I feel your pain...because I caused it."

[mytvc15]

Obama (and all Democrats in general) = Weapons Grade Stupid (WGS).

[NVDave]

It is most curious that he comes out with this statement while in China. I wonder if the Chinese had a word with him in private about how much longer they’re going to finance our deficits?

The PRC would, with reason, fund a trade deficit. But they’re not going to fund general budget deficits of this size for another year... not when the cost of oil is going up and they have so many uses for the money within their domestic economy.

[skr]

No money left over for taxes, however.

[Lmo56]

"It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession," he said.

Obama, Ya think ??? You dumbass !!!