Obama Admits Limit on “Stimulus” Money
On 60 minutes President Obama and Steve Kroft discussed some of the biggest issues that the economy will be facing in the next little while. Kroft asked a couple key questions as to from where the “bailout” money would be coming and whether there was a limit on how much could be used. According to this article’s analysis of the 60 minutes interview, President Obama did admit that the limit could be hit as soon as American currency began to depreciate.
The article also addresses a concern we should all have: Are we approaching that limit? The following excerpt helps to answer that question:
“Too bad Kroft didn’t repeat his second question: are we getting close to the limit of our borrowing capacity? The answer is clearly yes. Foreigners are dumping (long-term) Treasurys in a big way; the Chinese in particular are worried sick about their existing holdings. And so we’ve turned to Ben Bernanke to literally print money to buy Treasurys. These are powerful signals that yes, indeed, we are getting very close to the limit.”
This should have us all a little bit concerned, and hopefully the President’s administration and congress are mindful of this potential dilemma. It will be interesting to see how this unfolds! What is at stake is the average Joe’s ability to maintain the value of his assets (ie his home equity line of credit).
Comments
Leave a Reply
You must be logged in to post a comment.