“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”
Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”
Ok, I’m being deliberately misleading (but so was the headline). Actual summary: treasury prices will drop, rates will rise, and the economy will stay poopy if we don’t have good entitlement reform. I just found the first part to be a little odd for a president to say.
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