Obama "Spend What You Have"

Back Peddling is a Direct Result of China Visit
By Bill Glynn

I am certain as you are that the recent change in tone coming from the White House about debt and spending is a direct result of our Treasury Secretary’s trip to China. Invoking 2007 Democratic rhetoric “Spend What You Have,” the administration is doing an about face as the world is threatening to bring our wild spending to a halt. This quick turnaround is on the heels of our leaders having to go pander to China to get permission to issue new debt and print more currency. We haven’t received the official politically correct download yet and won’t get the detailed version anyway, but China and the rest of the world is FED up. We just got spanked!

Like Great Britain that couldn’t sell its bond to fund its debt at an attractive price, the U.S. is heading right down that path. In fact, the major rating agencies are already preparing to downgrade the British creditworthiness if they don’t clean up their act. Do we really believe this won’t happen to us? How much leverage does the world have over the U.S.? Obviously a tremendous amount. [more...]