ballpeen Posted June 24, 2009 Report Share Posted June 24, 2009 BORROWING 'TIL THE NATION BREAKS? By BRIAN M. RIEDL O: Leaving W's deficits in the dust. June 17, 2009 Millions of homeowners hoping to take advantage of government-guaranteed mortgage refinancing have gotten a rude awakening. In the last two months, mortgage rates have jumped from 4.8 percent to 5.8 percent, wiping out billions of dollars in potential homeowner savings. Analysts predict that rates will continue rising -- that the days of low-cost loans may be over. Who's at fault? Greedy lenders? No. Blame an unprecedented avalanche of government debt. Under President Obama, the 2009 budget deficit is set to reach a staggering $1.8 trillion. It took President George W. Bush seven years to run up $1.8 trillion in debt. And these deficits aren't merely a temporary result of the recession; the president's budget would run deficits averaging nearly $1 trillion a year for the next decade. The national debt would double. In other words, Obama would run up as much government debt as every president in US history from George Washington to George W. Bush -- combined. Put simply, he'd dump $84,352 per household of new debt into the laps of our children and grandchildren over the next decade. Obama and his supporters try to defend this debt with three arguments. First, he asserts that he "inherited" his large deficit from Bush (despite his Senate votes in favor of nearly every policy that created the deficit). This argument could be plausible if Obama had tried to rein in -- or at least not worsen -- the deficit. But after "inheriting" a projected $1.2 trillion deficit for 2009, he decided this deficit was too small. Based on the unproven notion that deficit spending can end recessions, Obama pushed through a massive "stimulus" spending bill whose very purpose was to bring the budget deficit to nearly $2 trillion. This suggests that even if he hadn't inherited a big deficit, he'd have created one. Second, Obama claims he'll cut the deficit in half by 2013. So what? The deficit has quadrupled this year -- a 50 percent cut from that bloated level would still leave deficits twice as high as before the recession. By the president's own projections, deficits would rise back up over $1 trillion by 2018. The national debt would still double. Finally, there's the "Bush did it too" defense: Why criticize President Obama's deficits when the debt started shooting up under President Bush? In fact, Bush received mountains of criticism for his deficit spending. Even supporters of Bush's outlays can complain -- just as someone driving 75 mph has every right to yell "maniac!" at the car that blows past him going 100. In this case, George W. Bush ran $300 billion deficits while fighting a war; Obama is now promising us permanent $1 trillion deficits even after America returns to peace and prosperity. The consequences of this debt are already being felt. In any economy, a limited amount of savings is available for everyone to borrow. The more Washington borrows from that pool to finance its debt, the lower the amount left for small business loans, mortgage loans, car loans or student loans. This is why interest rates are spiking -- and will continue to spike. The result will be less business investment (and therefore less job creation), and an even worse housing market. And if China stops lending us its savings, the pool from which to borrow will shrink even more -- pushing interest rates even higher. Large government debt also means large government interest payments. Under Obama's budget, spending just to cover net interest would nearly quintuple from $170 billion this year to $806 billion by 2019. At that point, 16 cents out of every dollar in federal spending would go toward interest on the debt. Americans already suffering from high interest rates and sluggish growth could face large tax hikes just to pay these interest costs. Obama and his advisers certainly know this debt growth isn't sustainable. Yet the White House's top 2009 priority is to accelerate the spending spree by creating a huge health-care entitlement. We've seen what happens when a housing bubble bursts. Thanks to runaway spending, the debt bubble may be next. http://www.nypost.com/seven/06172009/posto...aks__174580.htm China is getting close to pulling it's money as we inch closer and closer to a second rate monetary system. Link to comment Share on other sites More sharing options...
BrownIndian Posted June 24, 2009 Report Share Posted June 24, 2009 The Obama spending spree is very worrying ... I hope we spend on what is NECESSARY. Is it true that there is stimulus money devoted to turtle farms and bike paths ? Link to comment Share on other sites More sharing options...
Pumpkin Eater Posted June 24, 2009 Report Share Posted June 24, 2009 Again, it's funny how conservatives are NOW worried about federal spending and the national debt after 8 years of it. And it's funny how somehow wasting money on foreign wars is better than wasting money on the interior. Link to comment Share on other sites More sharing options...
Kosar_For_President Posted June 24, 2009 Report Share Posted June 24, 2009 The Obama spending spree is very worrying ... I hope we spend on what is NECESSARY. Is it true that there is stimulus money devoted to turtle farms and bike paths ? What's wrong with Bike Paths, our country is a bunch of fat fcks that need exercise. In Denver they have bike paths that reach 60 miles. Used to bike 8 miles to work on them, it's actually pretty sweet. Link to comment Share on other sites More sharing options...
calfoxwc Posted June 24, 2009 Report Share Posted June 24, 2009 Seems to be deliberately putting us into a skyrocketing debt, so that we can't get out, on purpose. The end expected result, is total dependency on the gov, total control of everything, and a permanent crisis that they can play into maintaining power in "elections", Chavez style, Iran style, Cuban style.... Obama's favorite countries, ya know. Link to comment Share on other sites More sharing options...
ballpeen Posted June 25, 2009 Author Report Share Posted June 25, 2009 Again, it's funny how conservatives are NOW worried about federal spending and the national debt after 8 years of it. And it's funny how somehow wasting money on foreign wars is better than wasting money on the interior. From the article..."Finally, there's the "Bush did it too" defense:" Did you read the article?? You guys beach and moan about 300 billion yet when your guy triples the amount with projections it will be that way for more than a decade you point backwards?? Link to comment Share on other sites More sharing options...
choco Posted June 25, 2009 Report Share Posted June 25, 2009 the only difference between the 2 parties is what they are willing to waste money on. thats why i stay outta these threads.... depending on who's in power, the other side is bitching about shit they care nothing about when they held power. GOP war-mongers will fight us to financial depletion.....Dims just dont know anything about money other than taxing and spending. personally, i dont care....any sabre-rattling from either side can be ferociously refuted in 15 seconds. Link to comment Share on other sites More sharing options...
calfoxwc Posted June 25, 2009 Report Share Posted June 25, 2009 more moral relativism, Choco - that's all that is. There is a hell of a LOT of differences between the two parties. Too many similarities here and there? yep. But to say that the Republicans long dreamed of a socialist control of our governent is laughable. Not funny one bit about the Dems, now. Obama SAID (you all NEVER really listen to him) "Now is our time". Link to comment Share on other sites More sharing options...
Pumpkin Eater Posted June 26, 2009 Report Share Posted June 26, 2009 the only difference between the 2 parties is what they are willing to waste money on. thats why i stay outta these threads.... depending on who's in power, the other side is bitching about shit they care nothing about when they held power. GOP war-mongers will fight us to financial depletion.....Dims just dont know anything about money other than taxing and spending. personally, i dont care....any sabre-rattling from either side can be ferociously refuted in 15 seconds. true. So many Americans buy into it and become partisan hacks. Link to comment Share on other sites More sharing options...
osusev Posted June 26, 2009 Report Share Posted June 26, 2009 concerned about Obama's defecit spending. So pointing toward Bush Jr is no longer relevant? So the 2 Wars he got us into at the 200+ billion we now spend yearly must not exist the 3 tax cuts CREATING LOWER TAX REVENUE does not count The medicare entitlements that he pushed that are going to cost us 100+ billion/year must not count What about the deregulaton debacle that almost crashed our system CAUSING us to borrow against Chinese investments and infusing more than 800 billion dollars the republicans and Bush push must not count either The Recession you know meaning negative growth and more unemployment = less TAX REVENUE must not count either Seriously I like this political direction SUDDENLY the dems who are now in control for less than a 8 months are the "bad" defecit monsters for be FORCED INTO THROWING EVERYTHING THEY CAN TO STABILIZE OUR COUNTRY. Wait I mean the Socialism monsters they are... The 2% of all business under government control.... How dare they try to fix the Republican deregulation monster..... Sure cutting taxes while increasing spending does not create debt.... Sure recessions dont affect income tax revenue....... creating increased legacy costs (GM anyone?) in medicare does not add to the defecit.... Banks all over the world collapsing when you walk into to the first day to work has nothing to do with increased spending.... No that 700 billion dollar emergency bailout that was passed BEFORE you get to work is all your fault.... Of course I am sure its Obama's fault that GM/Chrysler and the thousands of businesses they affect collapsing..... Right..... How about that Military Budget..... Yes he invaded a Iraq and Afghanistan..... YUP. Makes perfect sense..... whine about defecit spending when the sink was basically broken and they had no other options the first day to work... O sure being ranked in front of Slovenia must make us proud while spending the MOST of any country... No we dont have to fix our for profit insurance/health care industry.... no we will let CUBA catch us.... Yes those Bad Socialistic programs tons of other countries run or quasi private/government systems are BAD..... yes the defecit spending Obama evidently created is BAD.... 1 France Government based 2 Italy government based = GB 3 San Marino GB 4 Andorra GB 5 Malta GB 6 Singapore GB 7 Spain GB 8 Oman GB 9 Austria GB 10 Japan GB 11 Norway GB 12 Portugal GB 13 Monaco ...... 14 Greece GB 15 Iceland GB 16 Luxembourg GB based and non profit 17 Netherlands GB and private forced to match 18 United Kingdom GB 19 Ireland GB and private 20 Switzerland 21 Belgium 22 Colombia 23 Sweden 24 Cyprus 25 Germany 26 Saudi Arabia 27 United Arab Emirates 28 Israel 29 Morocco 30 Canada 31 Finland 32 Australia 33 Chile 34 Denmark 35 Dominica 36 Costa Rica 37 <A href="http://allcountries.org/health/usa_health_care_2008_nyt.html" target=_blank>United States of America 38 Slovenia 39 Cuba 40 Brunei I did not do the rest but I am pretty sure there seems to be a "pattern" here obviously.... Link to comment Share on other sites More sharing options...
BrownIndian Posted June 26, 2009 Report Share Posted June 26, 2009 What's wrong with Bike Paths, our country is a bunch of fat fcks that need exercise. In Denver they have bike paths that reach 60 miles. Used to bike 8 miles to work on them, it's actually pretty sweet. The idea is good as long as we do not put the stimulus money that we borrowed to build this. Im sure there are better uses to that money. Link to comment Share on other sites More sharing options...
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