After going on a multi-Trillion Dollar spending spree, Barack Hussein Obama called his current deficit spending “unsustainable.” He went on to warn of ballooning, inflationary consumer interest rates and the financing of government programs with money borrowed from other countries.
This comes at a time when millions in the private sector are being thrown out of work, in an Obama Administration expending hundreds of billions in taxpayer funds to keep federal, state and local civil servants employed. Huge sums of private sector taxpayer dollars are being routed to states and municipalities for hiring of even more marginally productive civil servants, providing raises and supporting their exorbitant early retirement benefits with life long medical coverage.
“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.” Obama failed to say that due to his spending, interest alone on his debt creation will be at least $850 billion annually within ten years.
Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”
Acting as if impending economic doom isn’t being created by his own administration, Obama revised his own budget estimates, raising his understated deficit projections for this year to a record $1.84 trillion, up 5 percent from the February estimate. The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. The more independent Office of Management and Budget projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.
Acting clueless to economic issues, Obama glossed over the fact that in his first year, his deficits will equal that of President Bush’s total accumulated deficits during eight years in office.
Falling back on blaming retiring private sector workers collecting Social Security and Medicare they have paid in to for years, Obama claimed, “Most of what is driving us into debt is health care, so we have to drive down costs,” he said. This is “fed speak” for reducing benefits to private sector retirees.
This is the ploy of federal employees, whose average salary is $76,000.00. Obama failed to mention that every federal employee just received a salary increase and that 70% of them routinely receive bonuses up to $25,000 annually. However, this is dwarfed by income earned by State and local employees and does not include incredible retirement benefits after only 20-25 years and lifelong medical coverage.
Civil Servants are considered to be the least productive workers in America. None the less, while millions of private sector workers are losing their jobs and Obama points fingers at their receiving benefits they have paid in to for years, hundreds of thousands of new “make work” public sector workers are being hired, pandering to their Unions and vying for their votes.