However...President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.
“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.”
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.”
Recently the federal government added about 60,000 jobs.The White House Office of Management and Budget also projected next year’s budget will end up at $3.59 trillion, compared with the $3.55 trillion it estimated previously.
Obama plans to double the number of IRS collection agents.
Americans blame the auto unions for destroying that industry. The government unions have the most control and suck the most money out of our system.
Federal hiring does nothing to stimulate the economy because the net cost almost ALWAYS outweighs the net return from said hires. These new jobs also further undermine confidence of the population because we know this is borrowed money.
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