Obama calls US debt unsustainable


Anyone who understands the U.S. debt picture won't be surprised by President Barack Obama's statement that U.S. deficit spending is "unsustainable." It's an easy thing to say, but a much more difficult problem to fix.

Satisfying the crowds in a Rio Rancho, New Mexico, town-hall meeting today he said, "We can't keep on just borrowing from China. We have to pay interest on that debt, and that means we are mortgaging our children's future with more and more debt."

No one will disagree with the obvious statement, but the obvious answer -- to stop borrowing -- is a bit tougher. The U.S. is not a position to do that with the current economic crisis. While Obama talked about raising taxes on the wealthy, he certainly can't touch that issue during the current recession. The last thing he wants to do is risk slowing down what little economic activity does exist.

Originally published