Friday, April 3, 2009

More Spending, More Debt

The Senate passed Obama's budget 55-43 today. After eight years of spending excess under Bush, the Democrats are going piling in for seconds thirds and fourths. This will certainly solve our long term problems:
The Obama budget would borrow an estimated $9.3 trillion over the next decade, according to the Congressional Budget Office, doubling the public debt as a share of the nation's output from 41 percent to 82 percent. The budget calls for nearly $4 trillion in deficits over the next five years.

So where will all this cash come from? KT has been all over this. There are really only two sources left, the Chinese and printing it. The Chinese have indicated they aren't happy with us debasing their investment, so count them out.

As America's biggest creditor, Beijing is now worried about its over-investment in U.S. Treasury debts. "We have lent a huge amount of money to the U.S.," Premier Wen Jiabao said last month. "Of course, we are concerned about the safety of our assets." He called on the Obama administration to "maintain its good credit, honor its promises and guarantee the safety of China's assets."

Stand by for inflation, hopefully sooner than later, so we can turn out Obama like a one term Carter type Presidency that we deserved for electing such an unprepared fool.

1 comment:

  1. Thanks for the link. It's all scarily clost to Atlas Shrugged.