Thursday, February 17, 2011

Obamanomics 101: Borrowing to pay debt isn’t debt-debt

I love this story,Obamanomics 101: Borrowing to pay debt isn’t debt-debt. So what is it? White House Press Secretary Jay Carney seems to think that it is something else--one of those "investments" the President is always talking about.

ABC's Jake Tapper needs a medal for this question.
TAPPER: If I borrow money from you — to pay — to pay off the interest for -

CARNEY: You may owe me.

TAPPER: Ten-year rule. If I borrow money from you to pay off the interest for the debt I owe to Geoff, am I not adding to my debt?

CARNEY: Well, without dealing with hypotheticals, why don’t you — why don’t you –

TAPPER: The president seems to think that that borrowing money to pay the interest on the debt is not adding to the debt. I don’t understand that math.

I don't understand it either. If I borrow money from a bank to pay off my credit card interest, I have not eliminated the debt that was generating the interest and I have added to my debt. I still owe the same amount in debt to the credit cards--and have now added more debt AND interest to my burden. I have increased my debt load. How is it the government is different than me? That is why people are getting fed up with government--this Administration thinks that the economic realities that apply to everyday life don't apply to them. They are wrong and they are screwing over my kids and grandkids.

But the thing that really got me was this one: The Obama Administration is still blaming President Bush. From Carney:
Well, the debt is — has been created over a number of years, as you know. And we came in here with an economic crisis, the likes of which, I daresay, I think nobody in this room has ever seen, and which threatened to head straight into a depression if we didn’t act.

But I also remind you that we inherited, when this administration came into office, this president came into office, an enormous debt that had been piled up in the previous eight years. And that is part of the problem. And the interest that you’re talking about is on that debt as well.
It seems like the default position for any Obama Administration spokesman in trouble is to blame President Bush. Note to Mr. Carney--your boss has been in office for over two years--time for him to start owning up to things. The Obama Administration is like a five year old--blaming someone else for the messes. The trouble is, a five year old eventually can be forced to admit their mistakes--I just don't see it from this Administration. God forbid Obama gets another term, but I can see Obama in December 2016 still blaming President Bush for all that's wrong in the country.

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