The President and the Looming Crisis
Apr 28, 2011 02:22 PM EST
Within weeks, the US Treasury will reach its legal limit of government borrowing, and stalemate in Washington could cause the US to default on its current loans, precipitating a global collapse worse than 2008.
The president demands a “clean” increase on borrowing, with no conditions or compromises, but Republicans insist on major restrictions on spending, insuring we won’t keep raising the limit in the future. This battle clearly damages Obama, since it automatically highlights his record-breaking spending. And why wouldn’t he agree to budget cutting mechanisms like spending caps, or automatic trims if deficits continue? Federal spending is approaching 25% of GDP, sharply higher than the 60-year-norm of 18%, and what significant new services could possibly justify this burden? If the economy crashes on Obama’s watch, the public will rightly blame the president for failing to foresee or avert the catastrophe.
Michael Medved
Michael Medved's daily syndicated radio talk show reaches one of the largest national audiences every weekday between 3 and 6 PM, Eastern Time. Michael Medved is the author of eleven books, including the bestsellers
What Really Happened to the Class of '65?, Hollywood vs. America, Right Turns,
The Ten Big Lies About America and
5 Big Lies About American Business
TOWNHALL DAILY: Be the first to read Michael Medved's column.
Sign up today and receive Townhall.com daily lineup delivered each morning to your inbox.