Wednesday, November 18, 2009

Obama's new take on the national debt? Or just words? Or are higher taxes on the way?

Barack Obama was interviewed by Fox News yesterday and said . . .

"It is important to recognize if we keep on adding to the debt, even in the midst of this recovery [suppress guffaw], that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession."  (Link to Reuters story here.)

First of all, it's some "recovery" out there, isn't it!  Up is down.  Left is right.  Whatever you say Mr. President.

Second, aren't we already at the point where people have lost confidence in the U.S. economy?

But, the most important thing contained in this statement is, of course, Obama's recognition of the truth about government borrowing more and more money . . . it is a bad idea.  Let's watch and see if his behavior will match words.

I suspect not.  Most likely, this is just more of the same.  Obama is talking simply to hear himself talk.  Saying whatever he thinks that his audience of the day (note that this was a Fox News interview) wants to hear.  In reality, he is still a big government liberal who has never seen a "problem" that government spending couldn't solve.

There is, of course, one other possibility . . . Obama could actually mean what he says.  But when most folks think that cutting spending would be the best way to stop adding to the national debt, Obama could be signaling a tax increase instead.  

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