By Jack Kinsella
The White House called current deficit spending ‘unsustainable’ and warned of skyrocketing interest rates if the US continues to finance its 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.”
Although Obama made it sound like it was all George Bush’s fault, that argument grows weaker all the time. The Obama administration just revised its projected deficit UPWARD another five percent since February, bringing this year’s shortfall to $1.84 trillion.
The revision for the 2010 fiscal year estimated the deficit at $1.26 trillion, up 7.4 percent from the February figure. 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.
Two weeks ago, the president proposed $17 billion in budget cuts, with plans to eliminate or reduce 121 federal programs.
It was political theater. The cuts represented one-half of 1 percent of the entire budget. At the same time, Obama is seeking an $81 billion increase in other spending.
It gets crazier…in his New Mexico appearance, the president pledged to work with Congress to shore up entitlement programs such as Social Security and Medicare.
How? He just said our debt load was unsustainable and that interest rates will soon skyrocket. He didn’t say it might. He said that it will. What does that mean to the average person?
Suppose you’re sitting on a $140K fixed-rate 30 year mortgage at seven percent. Your payments are around $925 per month. Suppose interest rates doubled to 14%? Your payment jumps to $1600 a month.
By the end of Jimmy Carter’s term in 1980 interest rates peaked at around 21%. At 21%, your $925.00 mortgage payment hovers around $2355.00.
He told his New Mexico audience; “Most of what is driving us into debt is health care, so we have to drive down costs.”
So, while acknowledging that our debt is ‘unsustainable’ and consequentially, rising interest rates may throw most of us out into the streets thanks to health care costs, he also said last week that “the stars are aligned” in reference to his national health insurance effort.
(America doesn’t have national health care now because it can’t afford to pay the estimated $1.6 TRILLION price tag.)
Obama urged the House of Representatives to pass legislation by the end of July that would envelop the 46 million Americans who have no coverage.
Standing beside him at the time was House Speaker Nancy Pelosi, who promised to deliver on schedule:
“Our goal is to have a healthier America. Our legislation will be on the floor by the end of July, I am quite certain,” she declared.
So, let’s untangle it all one more time. The banking system is teetering.The deficit is unsustainable. It will result in skyrocketing interest rates. We can’t keep borrowing. Most of what is driving us into debt is health care.
The solution is to pass legislation giving Congress more oversight into the banking system, raise the deficit, and enact a national health insurance program that will create the conditions he just said would cause interest rates to skyrocket, driving many of us out of our homes.
At the same time that Obama is driving us, eyes wide open, impossibly deep into debt to finance his pet projects, he seems determined to undermine the business community.
“It is traditional class-warfare rhetoric,” said Jade West, a lobbyist for the National Association of Wholesaler-Distributors. “It’s a little bit frightening.”
Bill Miller, political director for the U.S. Chamber of Commerce, called Obama’s remarks “an oversimplification of the real world.”
When the president called for ending tax breaks for corporations doing business overseas, he assailed a “broken tax system, written by well-connected lobbyists on behalf of well-heeled interests and individuals.”
In proposing to overhaul college loans, Obama said, “We have a student loan system that’s rigged to reward private lenders without any risk.”
After he accused a handful of Chrysler debt holders of seeking “an unjustified taxpayer-funded bailout,” some reportedly received death threats.
It’s all about power, says Rutgers University political scientist Ross Baker.
Obama deliberately us-against-them dynamic in which he aligns himself with average Americans and depicts his opponents as selfish powers working just for themselves.
Obama’s targets, Baker says, usually are unsympathetic and faceless corporations or hedge funds. “If you use inflammatory, populist language,” Baker said in an interview, “it’s best to use it on organizations or interests that aren’t terribly popular.”
“It’s a negotiating ploy,” he said. In the early stages of a presidency, he said, “you advance your cause very dramatically, even confrontationally.”
So, its all political theater, as I said before. It’s all about the O and advancing the power of the O. We’ve discussed what fascism is in previous briefings — and this is how it starts.
Obama seems determined to make reality match the rhetoric and to force us into the worst economic downturn in seventy years. There’s a children’s story about killing the goose that lays the golden eggs.
Obama evidently hasn’t read it.
Where do we go from here? I don’t know, really. It depends how far along on the Bible’s timeline we are. The Bible forecasts a world-wide economic collapse as part of the overall picture in the last days.
In Revelation Chapter Six, we have the opening of the seven seals and the first seven judgments. The first four seal judgments are represented by the Four Horsemen of the Apocalypse.
First comes the rider on the white horse — the antichrist. Then after that, the rider on the red horse, War. After that comes the rider on the black horse that brings economic collapse and famine.
This ISN’T the ride of the Rider on the Black Horse that we are witnessing. Not yet. The Seal Judgments are what they are and God didn’t number them arbitrarily.
It could well be a setting of the stage for that ride, but if that is true, then the antichrist and global war are just around the corner. Because they HAVE to come first. Each is interdependent upon the seal judgment that comes before.
Where do we go from here? Before the First Seal is broken, John writes; “After this I looked, and, behold, a door was opened in heaven: and the first voice which I heard was as it were of a trumpet talking with me; which said, Come up hither, and I will shew thee things which must be hereafter.” (Revelation 4:1)
That’s where we go from here. The voice of the trumpet and the shout. “Come up hither.”
“Wherefore, comfort one another with these words.” (1st Thessalonians 4:18)