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  • President Obama’s Unprecedented Debt

    The national debt is skyrocketing. In 2009 publicly held debt is projected to jump to 54.8 percent of GDP, up from 40.8 percent in 2008. A year-to-year increase of this size hasn’t occurred since World War II. While the main causes of this massive increase – $787 billion economic “stimulus” and the $700 billion Troubled Asset Relief Program (TARP) – are sure to be debated for some time, the truly frightening revelation should be not what has already taken place, but what our elected officials have planned.

    President Obama’s budget, if passed, would send debt to levels 26.3 percent of GDP over current law. Although President Obama has publicly stated his desire to both bring down deficits and reform entitlements under his watch, his actions don’t match his words.

    As The Washington Post points out,

    What is more alarming is that, barring major spending cuts or tax increases, President Obama’s budget could drive that figure to 82 percent by 2019, according to the Congressional Budget Office.”

    It’s no wonder that during his recent trip to China US Treasury Secretary Tim Geithner was laughed at when he tried to persuade the Chinese that the US debt they hold was a “very safe” asset.

    Rebuilding their confidence and a strong economy will require a much more credible commitment to debt reduction than we currently see from the Obama administration.

    President Obama’s Debt

    Posted in Economics [slideshow_deploy]

    34 Responses to President Obama’s Unprecedented Debt

    1. Spiritof76, New Hamp says:

      The US is headed into a disaster. The debts and the socialist policies are recipes for looming disaster. In the next two years, inflation, interest rats and unemployment will all be in double digits. We will be fondly reminiscing Carter era disaster.

    2. Barb -mn says:

      No concern from the president or administration. They're not going to sacrifice. This must stop! For the dignity and freedom of the American people. GOVERNMENT is not serving all equally. That's why every government application asks what race the person applying is. I mean applying for handouts or a brainless job of the government… high pay.

    3. Worldbfree4me says:

      China has over $1 trillion US sitting right here in the states. If they want it, its there's to take. But, If they take it and convert it into chinese currency they will devalue the Dollar. Walmart goods and the like will see price increases up to 50% or better. Consumers will still buy, but probably half as much and as a result of the decline in demand, China would have to lay off the millions they put to work to make those cheap Wally world goods. Bottom line, China needs the US just like we need them.I would not worry too much about China!

    4. Keith Matthews, Pete says:

      When the Keynesian wants to stimulate economic activity, he is struck with an immediate reality check–government can only move wealth around; it cannot create it. Then the light comes on. He realizes the he may extract wealth from the future as if through H.G. Wells' time machine. Federal borrowing ($1.8 trillion or more) is exactly that, pulling the wealth of my children's future back to the present.

      So, my bumper sticker for the next election cycle:

      "Sure it's $2 Trillion in debt but, hey, it's for the children."

    5. Daniel in Indiana says:

      Question: Should this be "billions"?

      Article:President Obama’s Unprecedented Debt.

      In the text above you have written:

      "A year to year increase of this size hasn’t occurred since World War II. While the main causes of this massive increase – $787 trillion economic “stimulus” and.."

      Should that be $787 billion?

      Thanks

      Daniel

    6. Sharp, General Deliv says:

      Obama's first step in establishing a dictatorship is to dystroy the USD. It's a tactic that has been used before in history, with great success. If, you can call the end result, which was the deaths of millions, successful.

    7. Rob Ellis North Caro says:

      The use of the words "freighting revelation" have started an argument on another blog, with some saying the author meant to say "frightening revelation" I however believe this is the proper usage and is meant to convey the thought that the revelation is burdensome and concerning. Help.

    8. Pingback: Morning Conservative Reading List - June 7, 2009 - AIP Blog - American Issues Project

    9. Patrick from Columbu says:

      H.R. 1207 The Federal Reserve

      Transparency Act of 2009 @ 190 Congressional Cosponsors

      Washington Times

      An Open Letter to the U.S. House of Representatives

      05/07/2009

      Dear Representative,

      We, the undersigned organizations representing millions of

      Americans, encourage you to cosponsor H.R. 1207, “The Federal Reserve

      Transparency Act,” which would eliminate the restrictions on U.S. Government

      Accountability Of?ce (GAO) Audits of the Federal Reserve.

      Since its inception, the Federal Reserve has operated without

      suf?cient transparency or accountability to the American people. In

      fact, current law speci?cally excludes the Fed from a thorough

      audit or real congressional oversight. No government agency has such an

      utter lack of sunshine.

      The Federal Reserve has

      created and dispersed trillions of dollars in response to our current

      ?nancial crisis. Americans across the nation, regardless of their

      opinion on the bailouts, want to know where that money has gone and

      exactly how much has been spent.

      H.R. 1207 would open up the Fed’s funding facilities, such as the

      Primary Dealer Credit Facility, Term Securities Lending Facility, and

      Term Asset-Backed Securities Lending Facility to congressional

      oversight.

      Additionally, audits could include discount window operations, open

      market operations, and agreements with foreign central banks, such as

      the ongoing dollar swap operations with European central banks.

      By opening all Fed operations to a GAO audit and calling for such an audit

      to be completed by the end of 2010, H.R. 1207 would achieve much-needed

      transparency of the Federal Reserve.

      Sign the Petition
      http://www.campaignforliberty.com/campaigns/audit

    10. Jim Passmore says:

      Check first paragraph. Don't you mean $787 BILLION "stimulus" bill? (Oops!)

    11. Pingback: BluntPolitics.com » Blog Archive » Family Members Stuck on Obama But Logic Escapes

    12. Normca says:

      While Obama is doing the money grabbing, most of the funds will not be spent until the 2010 election period kicks off. Gee; I wonder why. And the newspaper of record for the left publishing facts. What is going on ? The post can tell all of us how great Obama is and then balk at the policies. Take the lead; Obama's minions may not like the policies, however they do not attach the policy with the man. That is the strategy for the Wash Post and the rest of the print media.

    13. Paul Terry Stone, Su says:

      Rush Limbaugh stated that according to a British newspaper, Al Quaida wants to destroy the United States but Obama may beat them to it. The debt increase illustrates much of the point.

    14. Joseph, So. IL says:

      Something tells me Jimmy Carter is the only one enjoying this mess. He will no longer be the worst POTUS ever, Obama will hold that title. Or is will it be Chairman Obama? Little Red book anyone?

    15. Whicket Williams Kin says:

      Once again, I call your attention to the fact that What is said is not what is done. B.O. is on T.V. stating that his spending is working. So not True!! Compare his statements to the facts, you can see he is futher from reality every day. I am astounded that Rush is the only one with the guts to speak truth. Where are all the rest of you? Curled up in a fetal position before the mighty King of the world!

    16. Ken St Louis says:

      wELL FOLKS tHE FEDERAL RESERVE IS NOT FEDERAL ( Its a group of private banks ) and there are no reserves, just I O U s same as the social security TRUST FUND, THERE IS NO TRUST FUND AND reserves or almost gone, since weve had this 2nd great depression! The social security reserves are simply that we had more $ coming in than was going out, but thats soon to be over with!!! This moron president hates America, isn't and American and should be romoved from office!

    17. Jerry from Chicago says:

      I feel as though I am looking into Alice's mirror and living in a photonegative of reality. Up is down. What is, isn't and what ought to be shouldn't.

      Qualities of hard work, dedication, perseverence and achievement are unfairly distributed among human beings. The gains from these attributes therefore are illgotten. It is only fair and just then that these illgotten gains be siezed by the government and distributed to those who lack in these qualities. In a free society, individuals should be able to do whatever they want and not have to worry about the consequences of those actions or inactions. After all, someone else is always there to pay and if there's no money, charge it.

      Those who value education, sacrifice liesure time to study hard and pay attention in class deserve no better grades than those who do not. Regardless of effort, those earning 'A's should be given 'C's so that those earning 'F's can also be given 'C's.

      Criminals and psychopataths need our help and understanding. There is no point dwelling on the plight of the victims, what's done is done. Criminals and psychopaths are themselves victims of an uncaring and self-absorbed society. The achievers in this world are the problem. Through their ambition, they have unfairly accumulated more than those who do not have that ambition. Shame on them and on the system that allows such to happen.

      Welcome to Obama World.

    18. mike baker Dallas C says:

      When the Obama cultists start to realize the dream was just that, a dream, they had better not try to tell me that it all fell apart because I didn't 'Hope' hard enough.

    19. Richard, Spring TX says:

      It's interesting that you should quote the Washington Post at the beginning of this article since they, like other left wing media outlets, have been pushing for the Obama socialist agenda.

    20. Lynn B. DeSpain says:

      God, in my youth I prayed for a Black Charger. A 1969 with a four speed, Hemi engine, positraction, bucket seats.

      I knew then, as I know now, that you always answer our prayers. Sometimes its a yes, and sometimes its a no, and sometimes we just have to wait.

      But God, never in my life did I expect my prayer to be answered in the form of President Obama! Please take it back. Please?

      Hozro

    21. Dennis A. Social Cir says:

      Spend is the way of the dems, do not woory about money we will just print more. Wonder who is going to pay it back????? Jimmy Carter is well and still going.

    22. Jim Boley Cape Girar says:

      Idiot Congressman has proposed a $75.00/head Cow GAS Tax. Maybe Obama will appoint a Cow Gas CZAR. Al Gore is most qualified and could step in without any training.

    23. frederick rossi says:

      I sincerely believe that Hussien Obama is out to destroy the United States from inside. No country can recover from the debts he is forcing on the United States. Come on congress and senate, Democrat or Republican he needs to be stopped or our citizens will suffer unbearibly.

    24. Archie1954, CA says:

      My, people have very short memories! All of this budget problem does not belong to the current Administration, it is a direct result of 8 years of total incompetence not only on the part of George W. Bush but also of his complicit Republican Congress. Do you really imagine in your worst nightmare that President Obama would want to saddle the American people with the kind of economic and financial chaos that the country faces today? He has to or face the total meltdown of the economy thanks to Bush and his neocons. Don't forget that little fact and wake uo please.

    25. DNWord says:

      Archie 1954 has got it right. It would be nice if the new president could just push a button and restart the counter at zero, but this is real life, not a video game. Bush and cronies created the biggest national debt in history and left the U.S. economy in a shambles.

      Only a simple mind would think Obama would not have to take extreme measures to deal with the mess they left for him. Only a twisted mind would try to blame him for it.

    26. bess,TN says:

      Now, Now, Archie1954. Join the real world.

      I would have liked to see Bush use the veto on more than one occasion, but this whole financial meltdown started on Clinton's watch with the doubling down on Carter's disastrous CRA and Frank $90M Raines along for the ride. Under Rubin we witnessed the rise in credit default swaps that would go from $0 to $60T over the next 10 years (hello AIG).

      In dealing with the economic problems resulting from 9/11 and with the collapse of Enron, Bush did not try to step in and take over the airlines or to interfere with the necessary market adjustments. He instead tried to create an atmosphere of recovery.

      I never once heard Bush place the appropriate blame on his predecessor, which contrasts sharply with the current administration's playing the blame game of "pass the buck". Now BO has spent our grandchildren into debt and each day takes new steps that will insure a sharp rise in both unemployment and interest rates. You think the last 8 years were bad, in the president's own words "you ain't seen nothing yet".

    27. Ryan, PA says:

      For the first time in my life, I am sincerely doubting what the future holds for me, my wife, future children, and the generations after me.

      The power grab that is taking place in Washington at an unprecedented speed is shocking at best. I can only conclude it is a power grab and nothing else. I believe many people who were fooled by the President's charisma and intellectual appeal must at some point ask themselves 'What have we done?'. The irony of it all is they will feel the same burdens as the rest of us in the long run.

      Rush Limbaugh, I believe, is correct regarding the President's psyche in that he is 'an angry man and inherently believes America is a bad place and he is here to 'right' all the wrongs' (Not verbatim but sums it up)

      He has completely disregarded the Constitution, along with Congress, on everything he has done. Congress is equally, if not more, complicit in this as well.

      I cannot believe either political party could not muster up better political candidates who can provide this country the leadership it so desperately needs today.

    28. Michael Bunsick, MA says:

      Mr.Obama is ruining my future for success in many ways. I am only 12 years old and I have enough to worry about I do not want to be worrying about my taxes I will be paying in 8 years. I will all ready have to pay for the baby boomers social security (because the government used it all on their stupid "pograms"). Then after paying their social security I will have to pay for Obama's 787billion porkulus bill. and all the other stupid taxes. one day when I menchened that obama is stealing our future I got suspended for lieing.

    29. Pingback: The Hill’s Blog Briefing Room » MORNING READ

    30. Glen, FL says:

      You folks want to repeat the mistakes of the depression now don't you? Education is not as dangerous as it sounds.

    31. Glen, FL says:

      Michael, your parents should be arrested for child abuse. Seriously.

    32. Daryl Oregon says:

      OBAMA-Nation is here. With a full house and senate of democRATS he won't be stopped,,,,,,without impeachment!

    33. Barry, Louisville says:

      GW inherited a budget surplus, ran up the deficit to record amounts to a record amout of over $400 billion in 2004. He took our debt as a percent of GDP from about 55% to almost 75%…and as his last act sent almost a trillion dollars up to the guys that assisted in almost wrecking our financial industry…

      You can hate all you want, but to lay this at the doorstep of the new President show a lack of intelligence.

    34. Pingback: Grey's Matter

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