Thursday, May 14, 2009

Obama Says U.S. Long-Term Debt Load 'Unsustainable'

May 14 (Bloomberg) -- President Barack Obama, calling current deficit
spending "unsustainable," warned of skyrocketing interest rates for
consumers if the U.S. continues to finance government by borrowing from
other countries.

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

Holders of U.S. debt will eventually "get tired" of buying it, causing
interest rates on everything from auto loans to home mortgages to increase,
Obama said. "It will have a dampening effect on our economy."

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