Posted on 03/13/2013 10:24:15 AM PDT by mandaladon
There has been no shortage of dire warnings about the mounting US national debt, but President Obama is now offering a different assessment: no big deal.
"We don't have an immediate crisis in terms of debt," President Obama said in an exclusive interview with George Stephanopoulos for "Good Morning America." "In fact, for the next 10 years, it's gonna be in a sustainable place."
It's an assessment that will throw cold water on the latest attempt to achieve a so-called grand bargain to reduce the deficit. After all, a grand bargain would require excruciatingly difficult decisions for both sides - for Republicans, it would mean raising taxes, and for Democrats, cutting future spending on cherished programs like Social Security and Medicare. If there is no crisis, why would either side do it?
So, what happens if this latest effort to reach a deficit agreement falls through? Once again, the president's answer was, essentially, no big deal.
"Ultimately, it may be that the differences are just too wide" to get a deal, President Obama said. "That won't create a crisis. It just means that we will have missed an opportunity."
The president's reasoning is that the series of 11th hour agreements he has struck with Republicans over the last two years - to prevent a government shutdown, raise the debt ceiling and avoid the fiscal cliff - have resulted in enough deficit reduction to get the debt under control.
"I think what's important to recognize is that we've already cut $2.5- $2.7 trillion out of the deficit," he told Stephanopoulos. "If the sequester stays in, you've got over $3.5 trillion of deficit reduction already."
(Excerpt) Read more at news.yahoo.com ...
Sustainable Debt... ROFLMAO... not really.
Notice the presstitutes never ask him about kenyancare costs. He sold it as costing $900 billion and not adding a penny to the deficit. The latest estimate is $2.9 trillion over 10 years. Obama is a proven liar and yet the journolisters can’t stop fellating him.
And there is no Birth Certificate either!
All smoke and mirrors pps move on!
When truth comes from the mans mouth you better pay attention because it is a rarity.
No, you haven't.
What you've done is to promise to reduce projected future spending increases by that amount in Federal budgets not yet written, as funded by taxes not yet collected, and subject to amendment or change at any time by a Congresses not yet elected or a President given to the daily promotion of falsehoods.
Okay: now try explaining that to low-information voters. A lie can be told and repeated many times while the truth is still clearing its throat.
“These are not the droids you are looking for...”
Yep. This is bat crazy talk from the POTUS. And a no push back from a journolist with White House experience.
Our democracy is broken. Probably beyond repair.
“No debt crisis” is provably a lie.
With interest rates being artificially held extremely low, the payment on the national debt still amounts to 350 billion a year, more than multiple agency budgets combined.
If the interest rate were to go up to even half of it’s normal level, then that interest payment on the national debt would jump immediately to 700 billion, the total amount of the defense budget.
IOW, there is an interest bubble, a stock bubble, an inflation bubble, and a debt bubble.
If the inflation bubble bursts, then all the others will have to burst as well.
It will bring about a depression.
Obama is lying through his teeth.
If there is no crises, then it won’t be a big deal if the debt ceiling is not increased.
by the way, the only thing that happens if the debt ceiling is not increased is that the federal govt. is immediately put on a balanced budget.
Humpty Obama took the book and looked at it carefully. ‘That seems to be done right —’ he began.
‘You’re holding it upside down!’ Alice interrupted.
‘To be sure I was!’ Humpty Obama said gaily as she turned it round for him. ‘I thought it looked a little queer. As I was saying, that seems to be done right — though I haven’t time to look it over thoroughly just now — and that shows that there are three hundred and sixty-four days when you might get un-birthday presents —’
‘Certainly,’ said Alice.
‘And only one for birthday presents, you know. There’s glory for you!’
‘I don’t know what you mean by “glory”,’ Alice said.
Humpty Obama smiled contemptuously. ‘Of course you don’t — till I tell you. I meant “there’s a nice knock-down argument for you!”’
‘But “glory” doesn’t mean “a nice knock-down argument”,’ Alice objected.
‘When I use a word,’ Humpty Obama said, in rather a scornful tone, ‘it means just what I choose it to mean — neither more nor less.’
‘The question is,’ said Alice, ‘whether you can make words mean so many different things.’
I amazes me how he continues to maintain the support he has even with the enemedia in the tank for him.
There's a percentage that will believe anything he says but 50% of the people in this country can't be that stupid.
Sadly I believe you're right about a depression, we can't continue on the path we're on.
A continuation of the ‘it could have been worse, but I saved the economy’ from Obama. The ‘New Normal’ is his transformaion legacy for the USA.
PPOS is a freaking idiot!
Anyone who knows history ought to compare how the British and Germans financed WW1. The British sold their war loans (and that of their allies) the one place where there was enough capital in the world to absorb it; the New York market. The British had some lean financial years after the war, but the American banks had an interest in keeping the Imperial economy afloat to get their notes paid off.
The Germans were frozen out of that market and sold their war debt...to themselves. All in 5-year short term notes. No foreign banks cared to keep their economy afloat. So five years later, the German central bank printed money to pay off the war debt with worthless marks.
Back when our annual deficits were around a mere $400 billion, there was enough capital in Shanghai, Tokyo and Riyadh to soak it up. But when we went to $1.6 Trillion annunal deficits, we exceeded the world’s willingness or capacity to finance it. So we sold it to ourselves and papered over it with “Quantitative Easing.” In other words, we changed from the British model to the German model.
But we don’t have a debt problem. Just like the Germans didn’t, we’ll have a turbo-inflation problem.
There is no debt if you have ZERO intention of ever paying it back.
Say, can I borrow $20 from each of you?
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