Obama Warns Of "Unsustainable" Deficits And Spiraling Interest Rates

From Businessinsider.com

The good news is that President Obama is apparently deeply concerned about our level of deficit spending and the reliance on foreign governments.

Bloomberg: “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.”

The bad news is that Obama's solution most likely revolves around higher taxes, a strategy that's not only likely to depress growth, but one that probably won't close the gap as much as the government thinks it will.