Now let’s talk about the debt. Today, interest rates are low, lower than the rate of inflation. People are practically paying us to borrow money, to hold their money for them. But it will become a big problem when...interest rates start to rise. We’ve got to deal with this big long-term debt problem or it will deal with us. It’ll gobble up a bigger and bigger percentage of the federal budget...He almost sounded like Peter Schiff.
Now, it is interesting that Clinton provided this warning in the Obama nomination speech. It means he knows it is a BIG problem and wants to be on record warning about it, but it also means, both Democrats and Republicans are going to use the debt crisis as a tool to instill fear in the public and call for higher taxes.
In truth, a government that is spending at out of control rates should face the consequences and default, but, instead, they are going to squeeze the money out of the people. Clinton knows the debt crisis is coming, but don't for a minute think he considers default an option. Clinton is a big government thinker. When he sees the government in trouble, e.g. a looming government debt crisis, he isn't thinking cut back the government, he is thinking the people need to bailout the government. Bottom line: higher taxes are coming. The bailout of governments at state, local and federal levels is going to make the recent bailout of the banksters as a pocket change bailout.
If you were paying attention last night, Bill Clinton was warning you that this is exactly what is going to happen. Be prepared.