Economic Suicide by Debt or Taxes
Patrick Tyrrell /
An interesting, if alarming Op-Ed in the Washington Times by Ernest Christian and Gary Robbins this week, outlines what is likely to happen due to Washington’s Devil-may-care spending habits. The authors point out that according to the Obama administration’s planned budget, the gross national debt will reach 123% of GDP by 2020. Greece’s Debt to GDP ratio stands at 133% this year however there is no conglomerate of comparable size to the U.S. as The European Union is to Greece so no rescue of America will be imminent. Christian and Robbins aptly describe the future:
Right now, about 42 cents out of every dollar being spent by President Obama is borrowed – mostly from foreigners – and if he continues to stoke the crisis, America’s Triple A bond rating will be downgraded within a few years, the Treasury’s borrowing costs will skyrocket, and Washington will try to inflate its way out of debt by printing lots of cheap new dollars, thereby destroying people’s savings and impairing lives and livelihoods for generations to come. None of this is necessary; it’s Mr. Obama’s choice.