By Roger Runningen and Hans Nichols

May 14 (Bloomberg) — 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.”

The president pledged to work with Congress to shore up entitlement programs such as Social Security and Medicare and said he was confident that the House and Senate would pass health-care overhaul bills by August.

“Most of what is driving us into debt is health care, so we have to drive down costs,” he said.

CRAWFISH NOTE: Let’s see, Obama pushed a trillion dollar debt down our throats early on (no results yet either)…he knew almost all of that was a loan. He has not opened his mouth to stop the socialist party budget that triples America’s national debt AND NOW he sees the light? NOW he sees economic law reality? He is going to “shore up” Social Security NOW? Health care costs are to blame, ya gotta be kidding? Hey, you and your socialist party spilt the milk!
Either this man is clueless or thinks we are. Both possibilities are dangerous to the voters and our country.

http://conservablogs.com/theconservativecrawfish/

Posted on May 15th, 2009 by Doug Schexnayder, Ph.D.
Filed under: J. CARTER OBAMA