Flyingkiwi,
George W. borrowed about $9000bn in his 8 years and Obama has put on just over $7000bn in his first 4 years. The point to note is the debt trajectory under Obama and the effect of compounded interest rates. There is plenty of blame to go around, so neither Democratic nor Republican are blameless here.
However, Obama is President and responsibility rests with him. I find it amazing that around every table in America, families discuss their finances and make a plan around some basic principles, like,
1. A scenario of spending more than you earn is not sustainable. It is not acceptable to say you need to save money and then move the conversation to what coloured car you are buying.
2. If you need to raise your overdraft limit to ensure you can pay your mortgage, you have a problem.
3. The only way to fix a financial problem is to write a budget and stick to it.
These principles are so obvious to individual citizens, yet on a national level, look at the performance of Congress (both Parties)
1. Both parties agree they have a problem, yet neither party has promoted a comprehensive plan to raise revenues and cut spending. In any conversation. both parties pay lip service to debt and quickly move to talking about raising spending.
2. Last week Obama stated he needed Congress to raise the debt ceiling to ensure America can pay its debts. Not one member of the Press picked up on the story. Would you be happy to borrow money to make your mortgage payments?
3. The Obama administration has not produced a Budget for nearly 4 years. America has no fiscal plan. America has spending policies, a fixed income and borrows to cover the shortfall.
Why should we care? Whether Frogman likes it or not, the US is the World's number 1 economy and if they catch a cold, we catch pneumonia. Also, the US is the "goto" country in time of crisis. If they go into full austerity, in time of crisis the America presence, whether Military, Diplomatic or Humantarian will be sorely missed.
I find it amazing that many people are concerned about Climate Change and the planet they leave their children, yet and completely blind to the debt mountain they will leave their children. Climate change may have a profound effect in 50 years or so, but this debt will have an effect in 10 years.
Last edited by Liam Gallagher; 27th Jan 2013 at 14:52.