Obama's Brilliant Revelation: We're In A Whole Lotta Debt...!

Wow, it's amazing! Barack Obama finally got a clue on the state of our economy:

I'm not quite sure how he keeps thinking health care is related to this. We don't have socialized medicine (yet), so that's really not part of the economic meltdown equation. The truth is that he's just saying this because that's the message he wants to push out...so he can take over health care, too. AoS illustrates the stupidity of that:

Medicare is going to be broke in 2018, so naturally the only sane thing to do is put the government on the hook for even more liabilities. This whole idea that we can't get cost under control unless the government controls every thing presupposes that this is an area where the government has any competency at all. Where exactly is the proof of that?

It doesn't exist, but that's not going to stop him from attempting the takeover. Instapundit has this rather pointed observation:

“I’ve bankrupted the nation, so now your only hope is to pass my healthcare plan.” That goes beyond chutzpah to the edge of pathological dishonesty. Except, I guess, that it’s not pathological if you get away with it. And so far, he has.

This will become a bigger battle in the near future, but I want to get back to just the dollars and sense for now.

Actually, we were out of money before Obama quadrupled the national deficit and guaranteed trillion-dollar deficits for the indefinite future. Ironically, just a couple years ago the Democrats were wailing about Bush's deficits of a measly $200 billion or so; now they don't even blink at multiple trillions of dollars. Hm. How about that? I guess the Obamessiah waved his magic wand and change the rules of the game...or something. In reality, it is his plans and actions that are now driving the dollar to lose its AAA rating:

The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, while renewed caution about the world economy and banks prompted Asian and European stocks to slip.

The dollar's latest decline started when ratings agency Standard & Poor's cut its ratings outlook on Britain to negative from stable, stoking fears other AAA-rated countries which are running huge debt levels could share a similar fate.

Moody's Investor Service said on Thursday it was comfortable with its triple-A sovereign rating on the United States but that it was not guaranteed forever.

Remember this?

As debt rises, we have two options to continue funding it: borrow more, or print more. When foreign lenders (primarily China right now) stop buying U.S. debt, we'll be forced to print even more to cover our obligations. As more money is printed, the value of existing dollars will go down, thus inflation will rise. It is likely we'll see inflation of 12-15%, if not as high as 20%, like we saw in the 1970s under the Carter administration. If things spiral out of control, we may even see what is called hyperinflation, where the value of the dollar experiences a free fall and rates of 30-50% or even higher. If you look at history, every example of hyperinflation that I'm aware of have ended in economic devastation and some kind of revolution or war.

As I understand it, when foreign investors no longer see the dollar as a worthy unit of standard economic measure, bad things will happen. One of those bad things will be that dreaded refusal to fund our rising debt levels, and after that will be rampant inflation.

And it will be squarely on Obama's shoulders for making it happen. Just don't get suckered by the media's inevitable attempted spin...they'll probably still be blaming Bush.

There's my two cents.