Reckless Obama Borrowing, Spending Killing America Even Faster Than Critics Feared

My “expert” opinion: this is a really, really bad thing Obama is leading us into.

U.S.’s $13 Trillion Debt Poised to Overtake GDP: Chart of Day
By Garfield Reynolds and Wes Goodman

June 4 (Bloomberg) — President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”

The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.

“Over the long term, interest rates on government debt will likely have to rise to attract investors,” said Hiroki Shimazu, a market economist in Tokyo at Nikko Cordial Securities Inc., a unit of Japan’s third-largest publicly traded bank. “That will be a big burden on the government and the people.”

Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co. in Newport Beach, California, said in his June outlook report that “the debt super cycle trend” suggests U.S. economic growth won’t be enough to support the borrowings “if real interest rates were ever to go up instead of down.”

Dan Fuss, who manages the Loomis Sayles Bond Fund, which beat 94 percent of competitors the past year, said last week that he sold all of his Treasury bonds because of prospects interest rates will rise as the U.S. borrows unprecedented amounts. Obama is borrowing record amounts to fund spending programs to help the economy recover from its longest recession since the 1930s.

“The incremental borrower of funds in the U.S. capital markets is rapidly becoming the U.S. Treasury,” Boston-based Fuss said. “Do you really want to buy the debt of the biggest issuer?”

This is just part of “God damn America.”  It’s less oil-fouled than some of the other parts of God damn America, but it is a nasty part, nevertheless.

So we’re about to go bankrupt, basically.  Obama is digging a gigantic hole, and the entire American economy is going to plunge into that hole, never to emerge again.

I knew Obama was going to be a disaster.  I’ve been saying it and saying it.  But the rate at which he is destroying the country, both through deliberate, intentional action (e.g., his insane spending, the failed but shockingly expensive Porkulus, ObamaCare) and through complete and total failure to lead (e.g., the Gulf of Mexico oil leak, Iran, North Korea, Afghanistan, the rise of domestic terrorism, illegal immigration), is astonishing even to my worst case scenarios from last year.

The next time we find out that a candidate for president spent 23 years in a church whose pastor says, “Not God bless America, God damn America!!!” maybe people will think twice before voting for the fool.

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