By Tom Quiner
The president’s smug gene was in overdrive:
“It is sometimes important for people to step back and measure how far we’ve come. The economy right now is better than any other economy in the world by a significant margin. We remain the strongest nation on earth by far and there are no existential threats facing us.”
He went on to dismiss ISIS (who in another bout of smugness he once derided as the Jayvee team) or Russia as existential threats to the United States in an exchange with NBC’s Matt Lauer earlier this year.
He insisted the U.S faced no existential threats at all.
I think he’s wrong. There is one significant threat that could bring this country down abruptly: a debt crisis.
Do you remember how the economy was on the verge of collapse in 2008? That was before eight years of Obamanomics.
That was before a new, unaffordable entitlement, Obamacare.
That was before unrelenting deficit spending that doubled the public debt to 76.6% as a share of the economy since Obama took office.
Here is the Obama legacy:
Our corporate tax rate is the highest in the world. (Hillary wants to increase it.)
As a result, corporate profits are down, which depresses tax revenue, which increases the deficit.
The deficit shall increase 35% this year alone.
The economy that Obama crows about only grew 1.1% last quarter. We are hovering near recession.
Because the government has to increase borrowing to cover all of Obama’s red ink, interest as a share of the budget is increasing to 11% … despite record low interest rates!
Here’s the existential threat: unsustainable debt.
At what point does the economy collapse?
At what point does China or other nations refuse to lend us money?
What happens if interest rates spike, causing interest payments to overwhelm our budget, crowding out national defense, our societal safety net, and entitlement payments?
No one is talking about this issue, least of all Hillary Clinton, who wants to expand deficits with dramatic new government spending and economy-busting higher taxes.
The Congressional Budget Office projects public debt to increase to 85% of our economy in ten years. But that doesn’t factor in new debt Hillary promises to usher in.
What if she accomplishes what Obama accomplished in eight years and doubles our public debt to the economy again?
Then we’d be Greece.
And that is an existential threat to this country.