WASHINGTON, D.C. – Today, U.S. Senator Jim DeMint (R-South Carolina) made the following statement Friday responding to President Obama’s prediction that higher debt levels would lead to higher interest rates for American families and businesses.
“I’m glad the President is finally admitting that his reckless spending is going to have real economic consequences for American families and businesses. I’m glad he is finally acknowledging that his policies are going to lead to higher interest rates. Unfortunately, these admissions are three months late and a trillion dollars short.”
“As the President himself now admits, our economy is in crisis because of unprecedented levels of spending and debt. He should also admit that this is the worst time to force through an energy tax and government-run health care that will destroy jobs, cripple small businesses, raise taxes on families, and balloon health care costs. Families in South Carolina and throughout the nation are hurting and need real solutions that will create jobs and they need Washington to stop making matters worse.”
Yesterday, Obama stated: “But the long-term deficit and debt that we have accumulated is unsustainable. We can’t keep on just borrowing from China, or borrowing from other countries, because part of it is, we have to pay for – we have to pay interest on that debt. And that means that we’re mortgaging our children’s future with more and more debt, but what’s also true is that at some point they’re just going to get tired of buying our debt. And when that happens, we will really have to raise interest rates to be able to borrow, and that will raise interest rates for everybody – on your auto loan, on your mortgage, on – so it will have a dampening effect on the economy.”