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.
“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.”
He must have seen this chart about himself:
$1.85 trillion deficit. Obama should use his powers of persuasion on himself.
Two weeks ago, the president proposed $17 billion in budget cuts, with plans to eliminate or reduce 121 federal programs. Republicans ridiculed the amount, saying that it represented one-half of 1 percent of the entire budget. They noted that Obama is seeking an $81 billion increase in other spending.
Actually, Obama (one of them) mocked $18 billion in budget cuts, but that was when McCain proposed it during the campaign. And this is what Obama, the former not the latter, said.
"Earmarks account for one half of one percent of the total federal budget. But it's not going to solve the problem."
Now, $17 billion matters.
"$17 billion dollars taken out of our discretionary, non-defense budget, as well as portions of our defense budget, are significant. They mean something."
(Notice the word play? Taken out of our...non-defense budget, as well as...defense. Why not just say taken out of defense? Oh that Clinton play on words - saying opposing things at once. I've not missed it.)
True, Obama - one of you. It does "mean something". They mean the loss of 30,000 jobs in St. Louis, Missouri. Defense cuts will slow the production of C-17 cargo planes, made at Boeing - the second largest employer in St. Louis.
The bottom line is Boeing needs to get through to President Obama, Congress and Secretary Gates. If not, they stand to lose more than 5,000 jobs at Boeing in St. Louis, and 30,000 total local jobs, including suppliers.
Boeing executives are reaching out to anyone who will listen. They're trying to get Congress to put the planes back in the budget.
"If that message doesn't get through, we've got to start reacting to the news," said Vice President of Operations John Van Gels. "And that means start laying off people by the end of the year."
Employees said that would deliver a devastating blow to Boeing and St. Louis.
"It would just amaze me to think that one day I'm coming here to build the best cargo plane in the world, and the next I'm going to the unemployment office," Moran said.
Gateway has more on Obama's spending that is coming under fire from Obama:
Obama will quadruple the deficit this year.
Obama's budget more than doubles the national debt held by the public, and adds more to the debt than all previous presidents -- from George Washington to George W. Bush -- combined.