Tuesday, April 27, 2010

The Obama presidency’s fiscal reckoning
America faces a 250 percent increase in the national debt over the next decade

WASHINGTON, DC—According to an article by Roger Altman, Clinton’s Deputy Treasury Secretary, the latest numbers released by the Congressional Budget Office put the US debt on a path to 90 percent of gross domestic product.

Mr. Altman’s concern, along with 58 percent of the American public, is the country is on its way to a Greece style default—spending far more than it takes in tax revenue and leveraging debt against the GDP to the point its AAA Moodys’ credit rating might be reduced to AA. While many economists doubt the credit downgrade will actually occur, there is real concern among the international community that America’s debt will no longer be a sound investment.

The United States isn’t the only country that has been borrowing against its future, most European countries with cradle-to-grave health care systems and mandated weeks-log holiday breaks have put them on an unsustainable course.

The president’s pledge that HCR will actually reduce the deficit is dubious at best; every rational person knows the government cannot add tens of millions of citizens to the public dole and expect costs to go down.

While Iraq and Afghanistan will certainly be measures of Mr. Obama’s presidency, his greatest gamble lies in the belief that government can create wealth by taking it from the wealthy and eventually, the middle class.

-- Killswitch Politick

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