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."
No duh. And whose name is scribbled on the bottom of the stimulus bill? Isn't this the type of concern one expresses before spending a couple of trillion dollars? Obama reminds me exactly of the young students he lectured at ASU the other day about not getting into too much debt. He already sounds like kids calling their dad -- it wasn't my fault! I didn't know! The only difference is there is no one left out there to bail out the US - no dad, no friendly government, nobody.
By the way, if you are worried about current deficits, read this post Q&O calls "fun" with charts -- there is absolutely nothing fun about it. A sample: