Spend Our Way Out

If you or I had spent way too much money and were hopelessly in debt....how many of us would come to the conclusion that the only way to "fix" our situation would be to "spend our way out of it?"

It lacks common sense.

With that being said, it seems that that's exactly what President Obama has come up with as a solution to our current fiscal problems.

WASHINGTON - President Barack Obama outlined new multibillion-dollar stimulus and jobs proposals Tuesday, saying the nation must continue to "spend our way out of this recession" until more Americans are back at work.

Without giving a price tag, Obama proposed a package of new spending for highway, bridge and other infrastructure projects, deeper tax breaks for small businesses and tax incentives to encourage people to make their homes more energy efficient.

Read it here; http://www.onenewsnow.com/Headlines/Default.aspx?id=803528

It you were China, or any of the other countries who we owed $trillions to,....do you think this announcement would build confidence in our ability to pay back our outstanding debt?

Do you think they might demand a higher interest rate from us when we go to them and ask for even more money??

Do you think they may come to a point where they so lack confidence and faith in our ability to repay that they will simply refuse to extend us any more loans?

What happens then?

As one Chinese central banker already said, "Where will you go for more money if we refuse....the moon?"