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US Sen. Gregg: Obama turning US into Banana Republic.


A prominent Republican senator who Barack Obama once considered to be his commerce secretary is warning that the administration’s fiscal policies could put the U.S. on the path to “banana republic” status.

Sen. Judd Gregg, R-N.H., told CNN’s John King on Sunday’s “State of the Union” program that standards of living will drop in the U.S. if the administration’s 10-year spending projections prove to be accurate. Under existing projections, the public debt held by the federal government will grow from around 40 percent of the nation’s gross domestic product today to over 80 percent 10 years from now.

“Now you can’t blame that on [former President] George [W.] Bush,” Gregg told King.

According the Bureau of the Public Debt, over $1.1 trillion has been added to the publicly held portion of the national debt since Obama became president in January. That roughly equals 75 percent of the approximately $1.6 trillion that was added during all eight years of the Clinton administration.

The senator said the current policies being enacted by Congress are chiefly to blame for both the current $1.42 trillion deficit and the potentially disastrous fiscal projections.

“You talk about systemic risk. The systemic risk today is the Congress of the United States,” Gregg told CNN. “[W]e’re creating these massive deficits, which we are passing on to our children. We’re going to undermine fundamentally the quality of life for our children by doing this.”

The figures, he said, “mean we’re on the path to a banana republic type of financial situation in this country. And you can’t just do that. You keep running these [federal] programs out [into the future] and not paying for them. And you can’t keep throwing debt upon debt.”

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