Debt Wrong
Borrowing from Asia to pay for Katrina is the name of the game, says The New York Times:
President George W. Bush didn't say during his speech in New Orleans the other night how he would pay for his promise to rebuild the Gulf Coast states. Allow us to explain: Every penny of aid approved by Congress so far and all subsequent aid - perhaps as much as $200 billion - will be borrowed, with most of it likely from Asian central banks and other foreign investors. That means additional interest of about $10 billion a year indefinitely.
Don't get us wrong. In the main, it makes sense to borrow for huge, vital and unexpected projects (World War II comes to mind). Such borrowing spreads the immense costs over generations, all of which presumably benefit from the extraordinary spending. The problem is that the United States was deep in hock before Katrina - and for many of the wrong reasons. Unless Congress changes the pre-Katrina priorities laid down by Bush, necessary borrowing for Katrina will occur on top of unjustified borrowing. The resulting deficits could create deep economic distress, including higher interest rates, slower economic growth, future tax increases and constraints on the government's ability to be responsive, both to crises and to everyday needs, like health care. Growing deficits also pose a security threat because increasing foreign indebtedness risks eroding America's position in the world.
...A day after his speech from New Orleans, Bush ruled out tax increases to help pay for Katrina. Now Bush should also tell Congress to rule out new tax cuts for the rich. Taking responsibility for the response to Katrina means taking fiscal responsibility as well.
What most people don't seem to realize is that huge deficits are exactly what Republicans want. Once fiscal irresponsibility (of which the current president is by far the worst offender) has caused the deficit to reach a sufficiently frightening magnitude, it allows the government to make budget cuts that might have otherwise been hugely unpopular and impossible to pass.
Patrick at September 20, 2005 12:41 AM
Patrick,
I don't even know if it's that deliberate. Just a couple days ago, DeLay was claiming that there's no more "fat" in the budget to cut.
It just seems to be to be more of a "gonna get mine while I can and screw anyone else or future generations" mentality. Sandbox thinking. It's all just so sadly short-sighted.
deja pseu at September 20, 2005 7:36 AM
and decidely un christian, for a man who claims to be one
one would think that those people out there who do belive in a god of some kind would be offended by the false peity and blatant lies told by these so called christian politicians
but instead they support them, go figure
jphn at September 21, 2005 3:05 AM
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