Obama: Debt crisis? What Debt Crisis Nah, we’re good for the next 10 years.

[Wehrwolfen]

By The Right Scoop
03/13/2013


ABC’s Stephanopoulos is asking Obama whether or not entitlement reform is on the table. Obama claims that some Republicans didn’t really know what he planned, but Stephanopoulos presses him:

GEORGE STEPHANOPOULOS: But even the ones who’ve seen your plans say they need to see more.

PRESIDENT BARACK OBAMA: Well– I understand. Which is why, at some point, I think I take myself out of this. Right now, what I’m trying to do is create an atmosphere where Democrats and Republicans can go ahead, get together, and try to get something done. And, y– you know– I think what’s important to recognize is that– we’ve already cut– $2.5– $2.7 trillion out of the deficit. If the sequester stays in, you’ve got over $3.5 trillion of deficit reduction already.

And, so, we don’t have an immediate crisis in terms of debt. In fact, for the next ten years, it’s gonna be in a sustainable place. The question is, can we do it smarter, can we do it better? And– you know, what I’m saying to them is I am prepared to do some tough stuff. Neither side’s gonna get 100%. That’s what the American people are lookin’ for. That’s what’s gonna be good for jobs. That’s what’s gonna be good for growth.

But ultimately, it may be that– the differences are just– too wide. It may be that ideologically, if their position is, “We can’t do any revenue,” or, “We can only do revenue if we gut Medicare or gut Social Security or gut Medicaid,” if that’s the position, then we’re probably not gonna be able to get a deal.


(Excerpt)

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[waltky]

Granny says, "Dat's right - dem politicians is leadin' us into another financial crisis...

CBO: ‘Large Debt Increases Risk of Fiscal Crisis, During Which … Government Would be Unable to Borrow…’
24 May`13 - In its latest budget projections, released this month, the Congressional Budget Office warns that interest payments on the federal government's debt will more than double in the coming decade, that an expected increase in tax revenues to higher than average historical levels will not prevent the government’s persisting annual deficits from rising at the end of that period, and that the larger projected government debt will cause smaller American wages.

The CBO also points out--in clinical terms--that a large federal debt could lead to a fiscal crisis where investors no longer want to buy the securities the U.S. Treasury sells to finance the debt. “Such high and rising debt later in the coming decade would have serious negative consequences,” says the CBO report. “When interest rates return to higher (more typical) levels, federal spending on interest payments would increase substantially,” says the report. “Moreover, because federal borrowing reduces national saving, over time the capital stock would be smaller and total wages would be lower than they would be if the debt was reduced,” says CBO. “In addition, lawmakers would have less flexibility than they would have if debt levels were lower to use tax and spending policy to respond to unexpected challenges. Finally, a large debt increases the risk of a fiscal crisis, during which investors would lose so much confidence in the government’s ability to manage its budget that the government would be unable to borrow at affordable rates.”

The CBO also said that under current laws both federal spending and federal tax revenues as share of Gross Domestic Product are expected to be higher in the coming decade than has been the historical norm for the United States. “During the next 10 years, both revenues and outlays are projected to be above their 40-year averages as a percentage of GDP,” says CBO.

Despite historically high tax revenues, the federal government will continue to spend more than it brings in and will increase the debt every year during the next decade. The CBO envisions that the bigger debt that will ensue will require federal interest payments that more than double to an almost unprecedented share of the nation’s wealth. “The increase in debt, along with an anticipated substantial rise in interest rates as the economy strengthens, is expected to sharply boost interest payments,” says CBO. “CBO projects that, under current law, the government’s net interest spending will more than double as a share of GDP in the coming decade—from 1.4 percent in 2014 to 3.2 percent in 2023, a percentage that has been exceeded only once in the past 50 years.”

When the Republicans won control of the House of Representatives in the 2010 elections, a law that had been enacted by the previous Democrat-controlled Congress and signed by President Barack Obama on Feb. 12, 2010 limited the federal debt to $14.294 trillion. Republican House Speaker John Boehner then cut a deal with President Obama for legislation that Obama signed on Aug. 2, 2011 that increased the limit on the federal debt to $16.394 trillion. On Feb. 4 of this year, President Obama signed legislation that had been approved by the Republican-controlled House that completely suspended the debt limit through May 18—which was last Saturday.

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[TemplarKormac]

"Hear those voices warning of tyranny? You should reject those voices."

-BHO

 

[TheSeventhTiger]

during the last five years, everything bad seems to be on "The Backs Of Children and Disabled". Not gonna work for the next election, so long as the Republicans use the 21 Trillion Dollar debt in the way Obama used it. That debt caused by Democrats is on the backs of our children! I hope to see commercials in 2015 telling Americans how much each child owes and how much each new born owes! None of the additional 12 or so trillion Obama added to the debt wont be Bush's Fault !!!