28 Replies to “U.S. National Debt Tops Debt Limit”

  1. Does anyone believe that passing health care in the US will prevent the bankruptcy of America?
    He is either stupidly naive, grotesquely stupid, or is unfathomably evil.
    That covers all three of Africa’s prime attributes.

  2. Obviously we inferiors just don’t get it….last week he told the GOP to ‘stop trying to frighten the American people’ so clearly it’s the Repub’s who are at fault and making up scary stories, nothing to do with O. (sarc)

  4. “President Obama: Federal Government ‘Will Go Bankrupt’ if Health Care Costs Are Not Reigned In”
    They will go bankrupt then because he’s adding millions of people to the tab. New math you see.

  7. That’s it. Obama’s “stupidity” is deliberate. He wants to destroy America. Oh sure- we could blame it on his “inexperience” and “obvious imbecility” but this example takes the cake.

  8. Ah yes it’s the GOP’s fault as one commenter said.
    I find the current situation regarding healthcare facinating. By completely excluding the GOP from negotiations BO has left himself absolutly no room for error. So the bottomline is he must convince the “right” of his party to become “political suicide bombers” as Rush puts it. If the bill goes through without the public option and other contriversial components like abortion, he will lose the support of his base and become a first term “lame duck President”. BO must convince the Blue Dogs that they will not get re-elected regardless of this bill, so they must sacrifice for the larger good.
    Had BO set the bar a little lower he would be able to absorb some of the discontent on the “left” with suppport from the GOP. Without healthcare the entire platform falls apart. No Cap’nTrade, no amnesty, nada, zip, ziltch. This is truly a facinating political situation.

  11. why does the richest country in the world ….. the richest country in all history have to borrow so much money? is that why they are so ‘rich’? is it all the borrowed stuff puts them over the top?
    there will be a day of reckoning. no nation on the same earth in the same time period has avoided that. it’s like a law of gravity, not to mention common sense.

  13. Let’s see if I’ve got this straight. The Federal Government will go bankrupt if it doesn’t expand it’s role in healthcare!!!???
    Does 2 + 2 = 5?

  14. If I were an American, I would say: “Let the federalgovernment go bankrupt; the people will no longer be pillaged”.

  15. RW, $2 + $2 doesn’t equal $4, it only equals the interest you have to pay on it – which is a very small amount.
    That’s why the US has boxed itself into a corner – it runs on borrowed money, but if interest rates go up – game over.
    Defaults all over the place, personal, corporate, municipal, state, national. Ugly.

  16. These are the types of headlines which make bond markets nervous.
    By attempting to spend their way out of the recession, the American people risk bankruptcy. All it requires is for the international money lenders to lose confidence in the U.S. government.
    And should that day come, it’ll make the recent financial difficulties look rather mild. Out of the frying pan, into the fire.

  17. Further to my above post, only a moron of a president would say his country is in danger of going bankrupt. It’s the type of thing that could precipitate precisely what he fears.

  20. The loons of the left will always resort to name-calling and blaming “the other guys”. When things in the US get REALLY ugly, they will try to sling their mud at the last administration and cry that they weren’t given a fair chance. All you have to do is look at the Sask NDP to see that…Calvert didn’t have the stones to run on his record; he had to cry “WOLF” before he even called the election. Obama is no different.

  21. Obama is merely the symptom in my opinion. Way back when Ross Perot was running for the first time, he had a notable comeback to the comment ‘you have no experience!’. He said, “You’re right, I have no experience running up a $4 trillion debt!”.
    I was in Leesburg, Virginia at the time for a few weeks and I commented in a discussion that Canada, on a per capita basis was actually in more trouble with our (then) $600 billion debt (using my usual 10:1 ratio).
    A coworker looked at me and said “TRILLION not Billion!!” (using my per capita numbers I think Canada would have come in around $6 trillion)
    Then, as now, there are far too many people who have no concept basic math.
    Sadly, the US has far exceeded that debt while Canada paid off a significant amount. Yes, recent fiscal nastiness has caused a return to deficit spending here in Canada, but no where near the level of the US. Even on a per capita basis.
    The problem is what the uninformed electorate allows to happen – on both sides of the border.
    We can blame the MSM to a degree, but basically, as we all know, the information is available online.
    People – as I have said many times – are basically stupid (in the grand scheme)

  22. rabbit – your comments are always great. I hadn’t really thought about his comment about the “bankrupt” thing. You are so right – that is a total amateur blunder. Idiotic to say something like that.
    So, if the health care plan doesn’t pass, that means the US is going bankrupt, says the leader of the western world. Just awesome.
    I hear there’s talk of a pan-Arab currency – don’t know if they can make it work, I doubt it. But that sure makes me nervous. The US dollar is looking pretty scary right now to me, but what do I know.

  23. xiat, rabbit:
    Dave Rosenberg made the point today that the US of A will need to roll over 2.5 trillion in debt next year. This is a shade less than twice the GDP of all of Canada.
    The yield curve is already steepening significantly, and the Fed, seeing deflation almost everywhere, is pretty committed to keeping short rates near zero. Bond vigilantes seem certain to keep demanding higher rates at the long end, not because they foresee inflation, but because they fear default. Remember that ARM resets are usually based on either the 5 or 10 year T-bond rate, plus a few points of course. If those rates keep climbing, that other shoe will drop soon.
    If Bambam thinks things are grim now, wait six months; he’ll be wishing things were only as bad as the Queen’s annus horribilis.

  24. “””that is a total amateur blunder. Idiotic to say something like that.”””
    eric
    there was a domocrap senator that pulled a similar stunt in 2007, reguarding a bank in trouble
    you have to be carefull of what & how you address these things, they can cause stampedes and domino effect

  26. bleet, we won’t agree on much; I agree with your first statement, but not your second. Cheers.

  27. I do think that BO has already convinced the bluedogs that they will not be re-elected no matter what happens. What he has obviously told them is that all will be ok, cause he’ll give them a high up position in some government controlled organization. Maybe give em a job running Gm

  28. Yup, the USA dollar is down and could go lower but no other currency can replace it right now, imho. It appears most are worse off as regards debt, ability to pay and peoples confidence in the governments that backup the money and the debts.
    Canada is often a good hedge for investing in the US.
    I wonder, is money made more often by “buying low” than it is by “selling high”? It is hard to buy low i.e., to buy when everyone else is selling, to go against the herd.
    Also, I don’t think there is enough gold in the world to replace or backup all the money.

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