Obama: “We can’t keep on just borrowing from China."

[bobbyw24]

Obama: “We can’t keep on just borrowing from China."

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.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg&refer=home

 

[hugolp]

Did he say that before or after signing the biggest deficit of the history of the US?

 

[PatriotLegion]

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.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg&refer=home

LOL, what a joke. He help contribute to this "unsustainable" spending? Like what the hell does a Health Care plan going to do for someone who is jobless, and to encourage businesses to continue the move overseas to cheaper workforce as well as a unregulated workforce? What's next, what will be the collator for our debt to China like our debt to the FED Reserve like in the 30's? maybe the west coast?

There is no "HOPE" in this administration, as I never expected any hope or change.. Pfft, its all a joke.

People need to wake up........

 

[sluggo]

What is the ballpark estimate of Obama's spending since he took office?

Isn't it around 11 - 12 trillion?

 

[MRoCkEd]

We're in a deep hole and we can't keep on digging.
Now, join me as we use explosives to blast through another ten feet of dirt.

 

[Original_Intent]

What is the ballpark estimate of Obama's spending since he took office?

Isn't it around 11 - 12 trillion?

No, but I am pretty sure he has outspent in one quarter, any quarter under Bush, the person who left him in this mess by overspending so much...probably has outspent in one quarter most years under W.

I think the TOTAL debt is around 12 trillion (not counting SS and Medicare/Medicaid obligations)

 

[sdczen]

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.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg&refer=home

This is like a rapist telling their victim: "you really need to stop getting raped".

 

[PatriotLegion]

We're in a deep hole and we can't keep on digging.
Now, join me as we use explosives to blast through another ten feet of dirt.

Hey if we keep digging we will get to China.

 

[Original_Intent]

The only reason he is saying this is because China is saying "HEY! You can't just keep borrowing from us!" If the Chinese were willing you bet your ass we would just keep borrowing from China to put of the inevitable for as long as possible.

 

[Johnnybags]

He is a moron, the FED is printing hand over

fist and China is not buying much of anything from us. The FED is financing the Obama deficit and he knows it. China is more than likely selling to the FED.

 

[Acala]

Yup

The only reason he is saying this is because China is saying "HEY! You can't just keep borrowing from us!" If the Chinese were willing you bet your ass we would just keep borrowing from China to put of the inevitable for as long as possible.

Exactly. Lip service to fiscal restraint to try and dupe people into continuing to loan us money. Does he REALLY think the people with all the money got that way by being stupid? Actually, the disease of thinking you are smarter than everyone else is epidemic in Washington. And leads inevitably to epic mistakes.

 

[Feenix566]

This is like a rapist telling their victim: "you really need to stop getting raped".

That's hilarious!!!

 

[devil21]

I think the mention of skyrocketing interest rates is the real message here. Remember, they ALWAYS tell you whats going to happen well in advance. Just gotta pick up on it. That will be the Fed's method to try to drain all the excess liquidity from the system once inflation starts to kick in shortly. It was exactly what RP was talking about during his latest Bernanke interrogation.

The absurdity of Obama's statement is the cover. The interest rate hint is the meat.

ETA: I think this ties in with the credit card legislation and the attempts to cap card interest rates. People are already struggling to make basic payments on credit obligations these days and an across the board jump in interest rates, much less "skyrocketing" rates, would probably cause many people to stop paying even their minimum payments. That really would kill the banks.

 

[ItsTime]

What he really means is. We cant just keep borrowing from China (because they dont want to lend anymore) so we need to start borrowing from other countries.

 

[sluggo]

No, but I am pretty sure he has outspent in one quarter, any quarter under Bush, the person who left him in this mess by overspending so much...probably has outspent in one quarter most years under W.

I think the TOTAL debt is around 12 trillion (not counting SS and Medicare/Medicaid obligations)

My mistake. I haven't been able to keep up. The trillion dollar "stimulus" plan, the auto bailouts, the war spending, etc. -- none of which we can afford.

 

[MRoCkEd]

What he really means is. We cant just keep borrowing from China (because they dont want to lend anymore) so we need to start borrowing from other countries.

I have a better idea.

 

[rpfan2008]

Obama: “We can’t keep on just borrowing from China."

.......we need to print some ourselves.

 

[SLSteven]

We still need to borrow or print $108 billion so we can contribute to the IMF loan fund. Maybe we can apply for a loan from the IMF and try to recoup some of it.

 

[purplechoe]

"Yes we can"

 

[SLSteven]

"Yes we can"