Treasury Tim Geithner: “Senator, absolutely, it is an excessively high interest burden, it’s unsustainable”
Sessions: “Well it’s your plan. That’s the plan the President submitted.”
Geithner: “You’re absolutely right that with the president’s plan, even if Congress were to enact it, and even if Congress were to hold to it and reduce those deficits to three percent of GDP over the next five years, we would still be left with a very large interest burden and unsustainable obligations over time”
Sessions: “It’s not acceptable. I’m sorry, but that’s not a plan for winning the future, that’s a plan for losing the future…”
Mr. President Obama you lie! You said, “budget freezes spending for five years, and what that does is it solves the short-term problem by saying, we’re not going to spend any more money than we’re taking in.”
That is factually incorrect. Even after the president’s proposed budget – with its optimistic prediction of 3.9% growth – achieves a point, in 2017, when spending is roughly equivalent to taxes coming into the government, the U.S. government will continue to borrow hundreds of billions of dollars a year to pay for interest on the national debt accrued until that point – including debt racked up during the Obama presidency.
That is factually incorrect. Even after the president’s proposed budget – with its optimistic prediction of 3.9% growth – achieves a point, in 2017, when spending is roughly equivalent to taxes coming into the government, the U.S. government will continue to borrow hundreds of billions of dollars a year to pay for interest on the national debt accrued until that point – including debt racked up during the Obama presidency.
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"The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." --Thomas Jefferson
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