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May 18, 2009

We're Going to Need a Bigger Graph

Remember this?

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It gives a general sense of what Comrade Obama is doing to our future. But to be accurate, as Hot Air points out, we're going to need a bigger graph. To quote Robert J. Samuelson:

From 2010 to 2019, Obama projects annual deficits totaling $7.1 trillion; that's atop the $1.8 trillion deficit for 2009. By 2019, the ratio of publicly held federal debt to gross domestic product (GDP, or the economy) would reach 70 percent, up from 41 percent in 2008. That would be the highest since 1950 (80 percent). The Congressional Budget Office, using less optimistic economic forecasts, raises these estimates. The 2010-19 deficits would total $9.3 trillion; the debt-to-GDP ratio in 2019 would be 82 percent.
But wait: Even these totals may be understated. By various estimates, Obama's health plan might cost $1.2 trillion over a decade; Obama has budgeted only $635 billion. Next, the huge deficits occur despite a pronounced squeeze of defense spending. From 2008 to 2019, total federal spending would rise 75 percent, but defense spending would increase only 17 percent. Unless foreign threats recede, military spending and deficits might both grow.

The actual numbers will be far worse than the graph above. In an apparent attempt to soften us up for the skyrocketing taxes that await us, Chairman Zero recently admitted that the debt will break the spine of our economy:

But the long-term deficit and debt that we have accumulated is unsustainable. We can't keep on just borrowing from China, or borrowing from other countries — (applause) — because part of it is, we have to pay for— we have to pay interest on that debt. And that means that we're mortgaging our children's future with more and more debt, but what's also true is that at some point they're just going to get tired of buying our debt. And when that happens, we will really have to raise interest rates to be able to borrow, and that will raise interest rates for everybody — on your auto loan, on your mortgage, on — so it will have a dampening effect on the economy.

While the media drools and gets tingles up its leg, we are sleepwalking into a major depression.

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We're going to need a bigger president. Compliments of Aaron S.

Posted by Van Helsing at May 18, 2009 7:15 PM

Comments

And when that happens, we will really have to raise interest rates to be able to borrow, and that will raise interest rates for everybody — on your auto loan, on your mortgage...

Sort of like credit card companies that raise interest rates only a whole lot worse.

Posted by: Kevin R at May 18, 2009 7:40 PM

Van,

You are getting a lot of milage out of that graphic, LOL.

I think you need to pull the other one I sent with the 'long' (scroll down forever) bar.

Semper Fi.

P.S. - Buy more ammo. It is freaking out the elected officials. Trust me, they are paying attention.

Posted by: Oiao at May 18, 2009 8:11 PM

Obma is not a president he is a dictator and he should be impeached

Posted by: SPURWING PLOVER at May 18, 2009 9:08 PM

SPURWING, you are dead on. Obama doesn't know what the President of the United States is. He thinks he owns us.

Posted by: Kevin R at May 18, 2009 10:19 PM

Let's hope the Communist Chinese run their economy better than we run ours or they won't be able to buy all that debt!

Posted by: Harrison at May 18, 2009 11:01 PM

Don't expect moonbats to intelligently comment on this post. They don't understand economics anymore than they understand actual reality.

Posted by: J at May 19, 2009 12:17 AM

SPURWING, dictators aren't impeached, they commit....

Posted by: Eric at May 19, 2009 4:40 AM

I was thinking of paying extra on my 4.25% fixed rate mortage to get it paid off before 2019, but figuring interest rates will SOAR, its probably better to use the extra money to buy physical good and silver coins for daily use (which could become the only money people will accept, along with gold coins for larger purchases). Plus when I pay my mortage I will be paying it back with dollars worth alot less than what I borrowed.

Posted by: Anonymous at May 19, 2009 5:14 AM

Eric, some dictators end up like Mussolini and that Romanian guy; they dont necessarily off themselves.

Posted by: Anonymous at May 19, 2009 5:16 AM

J, you are right, and nowhere is it more evident than at the Democratic Underground. When they discuss economics, or especially the stock market, the level of stupidity is astounding. Couple public education with being stoned most of the time, and you get an ignorance that hurts.

For example, they think the "Dow" is a "dude" who sets the "average" each day. Someone you could write an outraged letter to.

Posted by: Karin at May 19, 2009 5:19 AM

As the left dances with glee...

Posted by: TED at May 19, 2009 6:15 AM

One looks at the Obamacrats' policies and wonders whether the complete destruction of the country is, in point of fact, the goal.

Posted by: Gregory of Yardale at May 19, 2009 7:09 AM

A period of high inflation is a great time to be in debt, not so great for liquid savings. Inflation indeed devalues everything, so you're paying back the debt cheaper. I still like being all paid up though.

Posted by: Mr Evilwrench at May 19, 2009 7:35 AM

You just wouldn't want to get caught that way under stagflation, which scares me.

Posted by: Karin at May 19, 2009 8:45 AM

I confronted a left-wing Obama supporting friend about the Obama deficits. His response was, I kid you not, "You have to spend money to make money."

Posted by: Gregory of Yardale at May 19, 2009 9:11 AM

I confronted a left-wing Obama supporting friend about the Obama deficits. His response was, I kid you not, "You have to spend money to make money."
Posted by: Gregory of Yardale at May 19, 2009 9:11 AM

You should tell him that he should get as many credit cards as he can and max them all out to the limit and then see how much money he makes doing that. Same principle as Obamanomics.

Posted by: Kevin R at May 19, 2009 9:35 AM

he, he, he - showing my deficit as Red - that ought to fool some more people into blaming Bush & the Republicans.....

Posted by: BHO at May 19, 2009 10:03 AM

Gregory, you should have corrected him. The correct saying is, "you have to have money to make money." Spending money means it's gone forever.

Posted by: cowlove at May 19, 2009 11:50 AM