10.01.2012 0

Fiscal year ends with another $1.2 trillion of debt

By Bill Wilson — Since Barack Obama has taken office, the national debt has increased by $5.3 trillion, including $1.2 trillion in the past fiscal year alone, to today’s gargantuan $16 trillion total. Never before has the debt increased so much in a single term of office, and now the American people must decide who it is they trust to rein it in before we are consumed in a European-like crisis wherein the debt can no longer be funded through honest means.

Already the only way we can refinance and expand the debt is with a printing press, meaning the debt is growing so fast and so large that creditors cannot even keep up with it all. By using the central bank to paper over the debt, Obama is sending very misleading signals to markets and to politicians that money is very cheap and that sovereign debt need not ever be repaid—that it is somehow risk-free. In the meantime, the risk of a national default is mounting and Washington, D.C., has done nothing to avert catastrophe.

Bill Wilson is the President of Americans for Limited Government. You can follow Bill on Twitter at @BillWilsonALG.

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