Thursday, May 14, 2009

Drowning in Debt

A bit frightening when you consider the numbers (Youtube - co-production with

Here's the effect - the US has jeopardized its AAA rating (via Instapundit):
That warning from Moody’s focused on the exploding healthcare and Social Security costs that threaten to engulf the federal government in debt over coming decades. The facts show we’re in even worse shape now, and there are signs that confidence in America’s ability to control its finances is eroding. Prices have risen on credit default insurance on US government bonds, meaning it costs investors more to protect their investment in Treasury bonds against default than before the crisis hit. It even, briefly, cost more to buy protection on US government debt than on debt issued by McDonald’s. Another warning sign has come from across the Pacific, where the Chinese premier and the head of the People’s Bank of China have expressed concern about America’s longer-term credit worthiness and the value of the dollar.
The upshot: Was it even necessary? Or were funds used to prop up favored political constituencies? From Les Jones:

The blue lines are Obama’s projected unemployment numbers with and without his $775 billion stimulus. The red triangles are actual employment numbers.

The actual numbers aren’t just worse than the rosy picture Obama painted for a world after his magical stimulus took effect. They’re worse even than the doomsday scenario he outlined if Congress didn’t pass his stimulus plan.

Especially considering that the stimulus is creating few jobs and not where they're needed - and that's according to the AP. Americans are going to be paying for this idiocy for decades. What's worse is that this is going to make the cost of borrowing rise for everyone killing if not greatly slowing down any type of recovery and burdening business well into the future.

No comments: