After complaints he hasn't addressed fiscal woes, President Obama
promises to lower deficit by $4 TRILLION within 12 YEARS. He
also warns that rising debt could derail the economy.
President Obama facing a 2010 re-election vote in which the
Nation's debt and deficit are major worries for Americans,
promised in a speech in Washington to put the country on a
gradual improving fiscal path.
He further warned that steadily rising debt could cost jobs
and force the country to borrow more from other countries
including China. (that has been happening for more than 15
years.) He further stated that "if our creditors (China
for one) start worrying about our ability to pay back our
debts, it could drive up interest rates for everyone who
borrows money". This will make it harder for businesses
to expand and hire, or for families to take out a mortgage.
With the US deficit expected to reach $1.65 trillion this
year, Obama proposed triggers that would force automatic,
across the board cuts in spending if the budget targets
are not met by 2014.
President Obama also proposed:
- Curbing deficit to 2.5% of GDP in 2015, 2% by 2020
- Seeking $770 Billion in savings by 2023 in cuts to non-security discretionary spending
- Saving $480 Billion in Medicare by 2023 and $1 Trillion more by 2033
Stay tuned.......
Sheila McKinney
