UPDATE 1-W.House's Orszag warns of dangers of huge deficits

Tue Apr 27, 2010 10:51am EDT

(Updates with Orszag quote)

WASHINGTON, April 27 (Reuters) - President Barack Obama's top budget adviser, Peter Orszag, said on Tuesday that the U.S. government must significantly alter its policies in order to tackle a growing mountain of debt.

Orszag warned that huge deficits could cause the market to lose confidence in a government's creditworthiness.

Out-of-control deficits could also "require increased borrowing abroad which will mortgage our future income to foreign creditors," Orszag told the first meeting of the 18-member National Commission on Fiscal Responsibility and Reform.

Reining in the deficit, which was $1.4 trillion in 2009, would "require significant changes in policy that build on what we have done," Orszag said. (Reporting by Kim Dixon and Ross Colvin, editing by Jackie Frank)

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Comments (25)
Buckrol wrote:
Has Orszag joined the Tea Party movement? Ha. Why does it take so long for leaders to figure out what the people already know.

Check out this hilarious Tea Party footage: http://www.funnyconservatives.com/?p=842

Apr 27, 2010 6:02pm EDT  --  Report as abuse
rgr451 wrote:
first run up the deficit, then argue that increasing taxes is the only way to fix it. They didn’t just ‘figure out’ anything, it is just the next step in the plan to increase their power and control. The question is why does it take the american people so long to figure out how the leaders are duping them? Repubs and Dems are equally happy to run up the deficit for you.

Apr 27, 2010 6:36pm EDT  --  Report as abuse
obamabinlying wrote:
Well, DUH!!! Stop the spending and that will make a start on lowering the deficits.

Apr 27, 2010 6:38pm EDT  --  Report as abuse
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