Federal Reserve chairman Ben Bernake has stated that he might not be able to leave interest rates where they are in the near future. If inflation continues to rear its ugly head, he will surely have to raise rates to combat it.
The problem is that the financiers of our national debt also know this frightening little fact. This is a huge reason why China not only stopped buying T-Bills to help finance us, but they actually dumped huge quantities of these treasury bills this last week. By doing so, China is no longer the largest foreign financier of America's debt. That dubious honor now belongs to the long stagnant economy of the country of Japan.
And yet, despite all of this bad economic news, President Obama has proposed a budget for the coming year that will add 1.6 TRILLION dollars more to our national debt. Needless to say this is asinine in the extreme and only pushes us closer to the edge of that abyss. President Obama cannot keep blaming all of the economic woes he faces on the past administration of George W. Bush, when every policy he enacts only exacerbates the problem by an order of magnitude.
Its time to be a leader, Mr. President. No more blaming others. Step up and lead with proven economic policies; not failed socialistic and Keynsian economics.
Here is an idea to help get you started on the right path. Your current 1.6 trillion dollar deficit adding budget you are proposing... scrap it. Start by an across the board 5 to 10% cut in spending for all departments except the Department of Defense. Next, 2/3rds of the $787 billion dollar stimulus is still unspent. DON'T spend it! Use it to reduce taxes for the rich and middle class so that it can stimulate the economy and job growth. Lastly, take the $500 billion dollars in TARP money that has been repaid and do the same thing. Do not spend it or reinvest it in other failing banks.
Businesses refuse to hire people and the economy continues to decline accordingly because they are scared to death of the future tax burdens you intend to place upon them should your plans come to fruition with card check, cap & trade, and health care legislation. When businesses know that they won't have to face these huge future expenditures, they will more likely take what profits they make into growing their businesses and thereby adding new jobs.
This exact same tactic worked when John F. Kennedy cut taxes and it worked again in spades when Ronald Reagan followed suit. Now is your chance to step up and pull us out of the ditch we are in, sir. If not, in 2012 your successor will do so... if it is not too late by then.