Bloomberg relays the epiphany:
“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.”
You don’t say.
Sorry folks, but China is already tired of buying Treasuries. The world economy is slowing drastically, which means the king of exports is feeling the pain too. And they’ve got plenty of their own to take care of.
I’m not sure which is scarier: the thought that China may run out excess capital at some point in the future, and be altogether unable to buy US government debt despite whatever politicking the US throws their way; or that while these bold statements about the ‘unsustainable’ government debt load are being made officials are endorsing the largest budget deficits in history.
Just another case of ‘do as I say, not as I do’? Or prima facie insanity?