New Debt Could Hamstring Obama

[jerry92]

Wall Street Journal
By JON HILSENRATH
November 6, 2008

The U.S. government is on course for an unprecedented borrowing binge in coming months that could constrain President-elect Barack Obama's economic agenda.

The Treasury Department laid out near-term borrowing plans Wednesday, saying it expects to tap financial markets for $550 billion in the final three months of 2008 and another $368 billion in the first three months of next year by issuing Treasury securities with a wide range of maturities.

Economists project that total government borrowing could pass $1.5 trillion in the fiscal year, which ends next September, pushing up the government's total debt burden by more than 25% in one year.

The sharp rise poses a potential dilemma for Mr. Obama's ambitious agenda. Few economists believe the Treasury will be constrained in the next year in its ability to manage its rising borrowing needs or in advancing another fiscal stimulus program. But in the long run, rising government debt could make it harder for Mr. Obama to pursue new spending and tax-cut programs aggressively.

More: http://online.wsj.com/article/SB122591965987102467.html

[tblue]

1. No doubt. But at least we've got some damn leadership for a change.

I trust it will be alright. We just have to support him as he makes the tough decisions.

[kestrel91316]

2. If Bush leaves he US with inexcusibly high debt there is only one solution:

Raise the income tax on the top 5% (wealthiest) of the population to as much as 90% on income over, say $1 million. Hey, if it was good enough for FDR and those guys back then, it's good enough to me. Make the bastards ALL pay for looting this country. That's where their money came from in the first place, right? We the People?

[azurnoir]

3. If Bush leaves the US with inexcusibly high debt????????????

There is no if, he has and will

[kickysnana]

4. Remove Tax Exemptions from political organizations calling themselves churches. n/t