Obama: ‘Trillion-Dollar Deficits For Years’ - Capital Commerce (usnews.com)
Just mindblowing. Here is #44 today (via the AP):
Obama said Tuesday the deficit appears on track to hit $1 trillion soon. Speaking to reporters after meeting with top economic aides, Obama said: "Potentially we've got trillion-dollar deficits for years to come, even with the economic recovery that we are working on."
If Obama really believes that the world economy will tolerate annual deficits north one trillion dollars, he will receive a belated economics education in short order.
Such deficits won’t won’t work. Already investors are losing their fascinations with US Treasuries, realizing wisely that cash is better than zero interest treasuries. Once the treasuries market dries up, the government will have to choose between massive tax increases, which will spawn a deep depression, or massive inflation, will create massive misery.
Very quickly, the government in Washington must come to realize that returning to essential governmental functions–and no more–is the only option.
Begin by dissolving the Departments of Education, Health and Human Services, Homeland Security, and Veterans Affairs. Eliminate the National Endowment for the Arts and the EPA. Not sure we need NASA, but we might be able to find a private buyer.
The Constitution itemizes the essential operations of government in Article I constricted by the Bill of Rights. Read and understand these limited powers–they are in your future.
Technorati Tags: Economy, deficits, enumerated powers