Sen. Judd Gregg, R-NH, knocked the spending plans of the Obama administration Tuesday, one day after the Treasury Department announced the deficit reached the $1 trillion mark at the end of June, just three-quarters of the way through the current fiscal year.
The economy isn’t out of the woods yet, not by a long shot. That, at least, is the conclusion drawn by none other than U.S. News & World Report’s eminence grise Mortimer Zuckerman, in a July 14 article in the Wall Street Journal.
Asked by This Week’s George Stephanopoulos about the Obama Administration’s terrible economic prognostications in advance of passage of the $787 billion “stimulus” spending bill back in February, Vice President Joe Biden regurgitated a familiar talking point:
As the fallout from the global financial crisis continues, the burning question in international financial circles is whether the U. S. dollar, the world’s reserve currency since the Second World War, can retain its status. Chinese and Russian leaders have already signaled their distaste for continued dollar hegemony, and the latter have even taken the extraordinary step of publicly seeking assurances that their dollar-denominated assets — U.S. government debt — will be protected.
The Federal Reserve caused the current economic crisis by suppressing interest rates and creating the housing bubble, Texas Congressman Ron Paul, Euro Pacific Capital president Peter Schiff, and others have charged. And now there’s finally been enough political push-back for the damage the Federal Reserve has wreaked that the Fed will be hiring a lobbyist.
The Obama administration’s efforts to borrow the U.S. economy into prosperity are meeting more and more skepticism on Wall Street as investors in the bond market are fleeing the U.S. debt market for greener investment pastures. The understandable skepticism of bond investors has forced the U.S. Treasury to increase the interest yields on 10-year Treasury notes, increasing the interest burden of new debt on taxpayers by more than 60 percent since December.
A hundred and eight billion dollars — $108,000,000,000. Not exactly an eye-popping sum anymore, in an era of multi-trillion-dollar annual budgets and multi-trillion-dollar annual deficits. Still, even with government spending streaking into the stratosphere, $108 billion is not mere chump change, especially when it’s leveraged as seed money.