OTHER OPINIONS : U.S. debt deepens
Posted: September 2, 2009 at 4:30 a.m.
SAN FRANCISCO — If you think reupping Ben Bernanke for another term as Federal Reserve chairman was the economic highlight of last week, think again.
The biggest stunner by far is the tidal wave of debt run up by the White House and Congress.
Over the next decade, the cumulative deficit will grow by $9 trillion, the Obama team now predicts, with this year's gap hitting $1.7 trillion.
This giant hole invites potential trouble: higher taxes, spending cuts, limited growth and a trillion-dollar-plus tab with China, the Treasury's go-to lender.
The deficits also pose a challenge for President Obama. His team can blame the problem onan inherited recession and wars in Iraq and Afghanistan. But the cavernous debt undercuts nearly all his goals, starting with a $1 trillion health-care overhaul.
Deepening debt is no argument for inaction. Obama's stimulus package and bailouts may have blunted the recession.
As for health care, his budget director, Peter Orszag, again suggested reform will bring down future medical bills.
Better yet, the numbers should be presented by a president looking to convince the country that there's a long-run strategy to bring the debt in check. But that person has picked a good week to take a vacation.
-The San Francisco Chronicle
Opinion, Pages 8 on 09/02/2009
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