U.S.’s $13 Trillion Debt Poised to Overtake GDP: Chart of Day

U.S.’s $13 Trillion Debt Poised to Overtake GDP: Chart of Day

By Garfield Reynolds and Wes Goodman

June 4 (Bloomberg) — President Barack Obama is poised to increase the U.S. debt to a level that exceeds the value of the nation’s annual economic output, a step toward what Bill Gross called a “debt super cycle.”

The CHART OF THE DAY tracks U.S. gross domestic product and the government’s total debt, which rose past $13 trillion for the first time this month. The amount owed will surpass GDP in 2012, based on forecasts by the International Monetary Fund. The lower panel shows U.S. annual GDP growth as tracked by the IMF, which projects the world’s largest economy to expand at a slower pace than the 3.2 percent average during the past five decades.

“Over the long term, interest rates on government debt will likely have to rise to attract investors,” said Hiroki Shimazu, a market economist in Tokyo at Nikko Cordial Securities Inc., a unit of Japan’s third-largest publicly traded bank. “That will be a big burden on the government and the people.”

Gross, who runs the world’s largest mutual fund at Pacific Investment Management Co. in Newport Beach, California, said in his June outlook report that “the debt super cycle trend” suggests U.S. economic growth won’t be enough to support the borrowings “if real interest rates were ever to go up instead of down.”

Dan Fuss, who manages the Loomis Sayles Bond Fund, which beat 94 percent of competitors the past year, said last week that he sold all of his Treasury bonds because of prospects interest rates will rise as the U.S. borrows unprecedented amounts. Obama is borrowing record amounts to fund spending programs to help the economy recover from its longest recession since the 1930s.

“The incremental borrower of funds in the U.S. capital markets is rapidly becoming the U.S. Treasury,” Boston-based Fuss said. “Do you really want to buy the debt of the biggest issuer?”

(To save a copy of the chart, click here.)

To contact the reporters on this story: Garfield Reynolds in Sydney at greynolds1@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net.

WHITE HOUSE SIDES WITH HAMAS!… Says Gaza Blockade Unsustainable

 

Posted by Jim Hoft on Saturday, June 5, 2010, 12:01 PM

OBAMA WHITE HOUSE SIDES WITH HAMAS!

The Obama White House is now siding with Hamas over Israel. Despite the documented ambush on the Israeli soldiers this week by radical Islamists in the Mediterranean, the White House is pressuring Israel to end its blockade of Gaza essentially undermining Israel’s last wall of defense against the Islamic killers of Hamas.

Jihad

President Obama refused to side with Israel after the attack and told Prime Minister Netanyahu to go back to Israel out of concern that the Israeli Prime Minister would use the White House as his backdrop while discussing the flotilla ambush.

Reuters reported:

The White House said on Friday Israel’s blockade of the Gaza Strip was unsustainable and urged a Gaza aid vessel sent by pro-Palestinian activists to divert to an Israeli port to reduce the risk of violence.

“We are working urgently with Israel, the Palestinian Authority, and other international partners to develop new procedures for delivering more goods and assistance to Gaza,” said Mike Hammer, spokesman for the White House National Security Council.

The current arrangements are unsustainable and must be changed. For now, we call on all parties to join us in encouraging responsible decisions by all sides to avoid any unnecessary confrontations,” Hammer said in a statement.

Israel was preparing to intercept the Irish-owned ship the Rachel Corrie, bound for Gaza with aid and activists, after its naval operation on Monday in which nine Turkish activists were killed on another ship when it was boarded by Israeli forces.

The White House is asking Hamas to act “responsibly”? Since when has Hamas acted responsibly?

As Charles Krauthammer wrote this week:

Without forward or active defense, Israel is left with but the most passive and benign of all defenses — a blockade to simply prevent enemy rearmament. Yet, as we speak, this too is headed for international de-legitimation. Even the United States is now moving toward having it abolished.

But, if none of these is permissible, what’s left?

Exactly. Obama wants the Jews defenseless.
There can be no other explanation.

GOP wants Justice probe of White House dealmaking

GOP wants Justice probe of White House dealmaking

By WILL LESTER   06/05/10 at 5:00 AM

WASHINGTON (AP) — Rebuffed before, Republicans are renewing demands for a Justice Department investigation into White House dealmaking in two Senate races. The Obama administration says it’s broken no laws, but Republicans aren’t taking its word.

The GOP national chairman, Michael Steele, used his party’s weekly radio and Internet address to keep the political heat on the Democratic White House by urging appointment of a special investigator or independent counsel “who can sort out the facts.”

The White House has acknowledged discussing possible jobs with senatorial candidates Joe Sestak in Pennsylvania and Andrew Romanoff in Colorado — both of whom declined to step aside from challenging White-House backed incumbents. White House defenders have argued that it’s sometimes necessary to avoid messy primary fights.

Attorney General Eric Holder rejected requests from Republicans on the Senate Judiciary Committee and from California Rep. Darrell Issa, the top Republican on the House oversight committee, into the first case that came into the news: Rep. Sestak’s claim that he was offered an administration job if he would drop his primary challenge against Democratic Sen. Arlen Specter.

The White House has acknowledged it turned to former President Bill Clinton to urge Sestak to stay in the House and accept an unpaid presidential advisory post rather than challenge Specter, a Republican-turned-Democrat. Sestak declined, and went on to beat Specter in the May 18 primary.

And this week, the White House disclosed that it had contacted Andrew Romanoff, a former Colorado House speaker, about possible administration jobs in hopes that he would not challenge Sen. Michael Bennet in the Aug. 10 Senate primary. Both the White House and Romanoff said there was no job offer, and Romanoff remains in the race.

“From day one of this current flap involving Congressman Joe Sestak and now Andrew Romanoff, the White House efforts to deny, obfuscate, and mislead have only served to raise suspicions even further,” Steele said.

Steele wants “an impartial referee” to get to the bottom of what the White House offered, who authorized it, who knew about it and “what was the expected trade-off for accepting the offer?”

He said President Barack Obama’s dealmaking falls far short of his promise to run the most open administration in history.

___

Online:

GOP weekly address: http://tinyurl.com/2utgceh

Read more: http://dailycaller.com/2010/06/05/steele-doj-should-examine-white-house-dealmaking/print/#ixzz0q6Wf3QOG

Sarah Palin: Remembering D-Day

Sarah Palin: Remembering D-Day

Remembering D-Day
 Today at 12:15pm
Today, on the 66th Anniversary of D-Day, let’s remember the courage and sacrifice of our Greatest Generation whose actions helped liberate a continent. I’d like to share with you excerpts from President Reagan’s beautiful speech on the 40th Anniversary of D-Day honoring the Rangers who took the cliffs at Pointe du Hoc:

“Behind me is a memorial that symbolizes the Ranger daggers that were thrust into the top of these cliffs. And before me are the men who put them here. These are the boys of Pointe du Hoc. These are the men who took the cliffs. These are the champions who helped free a continent. These are the heroes who helped end a war. Gentlemen, I look at you and I think of the words of Stephen Spender’s poem. You are men who in your “lives fought for life and left the vivid air singed with your honor.”….

Forty summers have passed since the battle that you fought here. You were young the day you took these cliffs; some of you were hardly more than boys, with the deepest joys of life before you. Yet, you risked everything here. Why? Why did you do it? What impelled you to put aside the instinct for self-preservation and risk your lives to take these cliffs? What inspired all the men of the armies that met here? We look at you, and somehow we know the answer. It was faith and belief. It was loyalty and love.

The men of Normandy had faith that what they were doing was right, faith that they fought for all humanity, faith that a just God would grant them mercy on this beachhead, or on the next. It was the deep knowledge — and pray God we have not lost it — that there is a profound moral difference between the use of force for liberation and the use of force for conquest. You were here to liberate, not to conquer, and so you and those others did not doubt your cause. And you were right not to doubt.

You all knew that some things are worth dying for. One’s country is worth dying for, and democracy is worth dying for, because it’s the most deeply honorable form of government ever devised by man. All of you loved liberty. All of you were willing to fight tyranny, and you knew the people of your countries were behind you.” – Ronald Reagan

May we never forget the sacrifices made for liberty.

– Sarah Palin

McCain’s Last Stand?: “Maverick” In Fierce Fight To Hold Onto Senate Seat

McCain’s Last Stand?: “Maverick” In Fierce Fight To Hold Onto Senate Seat

June 6th, 2010 Posted By Pat Dollard.

McCain's Last Stand

LAKE HAVASU CITY, Ariz. (AP) – A serious re-election fight wasn’t what Republican John McCain expected when he returned to the Senate after losing the presidency.

But the four-term senator is battling for his political life in a race that embodies the volatility of an unpredictable election year. He’s facing former Rep. J.D. Hayworth, a fellow Republican pushing him farther to the right as GOP voters demand conservative purity in their candidates and punish those with ties to the Washington establishment.

Two longtime Senate incumbents have fallen—Bob Bennett, R-Utah, and Arlen Specter, D-Pa. A third—Blanche Lincoln, D-Ark.—could see her hopes dashed this Tuesday in a runoff amid voter inclination to reward political neophytes who adhere to party principles over experience.

McCain’s popularity fell in Arizona as he spent years campaigning outside of it, twice for the White House. Hayworth, a radio talk show host who had been in Congress for a dozen years but lost to a Democrat in 2006, saw a chance for a political comeback.

The behemoth in the race, McCain has a decades-old political organization, millions in the bank and six campaign offices. He’s counting on his deep ties to Arizona and legions of longtime backers to carry him through. In contrast, Hayworth has never run statewide, is struggling to raise money and has just two offices. But he’s being fueled by disaffected McCain backers and voters hungry for new leadership.

“He’s been there too long. And he hasn’t done anything for Arizona,” Ally Miller says of McCain, 73. “It’s time for someone new.”

Among Hayworth supporters, there’s a feeling that McCain hasn’t been a loyal Republican, he’s ignored Arizona and his time has passed. Many have voted for him for years—because, they say, there wasn’t another option. With the 51-year-old Hayworth, people fed up with the status quo—and unwilling to automatically give McCain a new six-year term—have somewhere to turn.

“Hayworth is a true conservative patriot,” said a supporter, John Kessler. “McCain has become a big government, tax-and-spend liberal.”

Helen Thomas Should Go Back to Mordor or the Star Wars Cantina and Get Out of Reporting

Helen Thomas Should Go Back to Mordor or the Star Wars Cantina and Get Out of Reporting

By Doug Powers  •  June 4, 2010 04:13 PM

**Written by guest-blogger Doug Powers

And yet, there she’ll be in the front row of the next White House press conference:

White House press corps dean Helen Thomas — on the day that the White House hosted a Jewish Heritage Celebration, no less — said that Jews who live in Israel should “get the hell out of Palestine” and go “home.”

When asked where home was for Israeli Jews, Thomas offered “Poland, Germany… and America and everywhere else” that the founding generation of the State of Israel originally hailed.

Just think what she’d say if she wasn’t clinging to her unbiased journalistic instincts.

Click play if you dare — just looking at the still can haunt your dreams:

Hate video

 http://www.youtube.com/watch?v=7X3ktE-6-uA

Update: Thomas issues a statement of regret for what she said.

From Allahpundit:

I’m satisfied. Who among us hasn’t innocently stumbled into a statement of support for ethnic cleansing when we didn’t really mean it?

Well…

Helen Thomas has become one of those octogenarian dinner guests soiling themselves at the table in ever increasing amounts who nobody has the guts to lock in the bathroom.

**Written by guest-blogger Doug Powers

Twitter @ThePowersThatBe

Obama: I can handle this

Obama: I can handle this

Clarice Feldman

In today’s Washington Examiner, Byron York reminds us of Obama’s claim that he could handle emergencies like the BP spill:

It’s not mentioned much now, but in the late summer of 2008, a major hurricane, Gustav, was in the Gulf of Mexico and headed toward New Orleans, threatening a replay of the disastrous Katrina experience.
On September 1, 2008, Barack Obama, fresh from his Roman-colonnade speech on the final night of the Democratic convention in Denver, talked to CNN’s Anderson Cooper about Gustav and the Gulf.
The question: As president, could he handle an emergency like that? Obama pointed to the size of his campaign and its multi-million dollar budget as evidence of his executive abilities.
“Our ability to manage large systems and to execute, I think, has been made clear over the last couple of years,” Obama said. That executive ability, he added, “indicates the degree to which we can provide the kinds of support and good service that the American people expect.”