Obama: Debt Could Fuel 'Double-Dip Recession'

[OnePimpTiger]

Obama: Debt Could Fuel 'Double-Dip Recession'

The United States' climbing national debt could drag the country into a "double-dip recession," President Obama warned in an interview with Fox News Wednesday from China, though he said he's still considering additional tax incentives for businesses to reverse the rising unemployment rate.

The president, who is in Beijing as part of his tour through several Asian countries to address economic challenges, spoke candidly about the precarious balancing act his administration is trying to perform. He wants to spend money to kick-start the economy, but at the same time is in danger of creating too much red ink.

"There may be some tax provisions that can encourage businesses to hire sooner rather than sitting on the sidelines. So we're taking a look at those," Obama told Fox News' Major Garrett.

"I think it is important, though, to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession."

Does anyone else feel like they're taking crazy pills? After reading this, I'm really beginning to wonder if President Obama understands what causes debt. Does he think giving tax cuts to encourage new hiring is the only thing that causes that national debt to rise? Apparently, anything along the lines of a tax cut causes debt to rise, but the litany of social projects like health care and climate change have no effect on it. It's like he doesn't realize his $1.whatever trillion deficit is causing the national debt to rise astronomically.

It's been blatantly obvious to anyone who cared to look for a long time, but it bears repeating: this president knows next to nothing about basic economic principles.

[duane1969]

Does anyone know what his actual economic plan is anyway? I keep hearing all of these different "plans" but all I am really seeing out of his administration is spend, spend, spend.

[jaybird_1981]

Mind boggling to say the least.

[tutall]

well to be honest i think the double dip recession was coming whether or not Obama's plan went into action. Americans have been using credit for far to long to live bigger than what they can afford and looking at the numbers and policies thats about to stop... causing a whole nother problem.