President Obama, New Mexico, and Mexico City

It's maddening! President Obama told a New Mexico audience last week he's for lower deficits because he's concerned that China won't want to buy our debt to finance the federal government's outrageous spending. He says this after sending a budget to Congress that the Office of Management and Budget projects will balloon the deficit to $1.84 trillion this year and $3.1 trillion over the next two years.

There are three ways to finance deficits: 1) sell debt, which President Obama fears won't be as desirous to China, our largest foreign debt holder at $744 billion; 2) print money; or 3) raise taxes.

Door No. 1: The Chinese are balking at our debt, so it's likely we'll have to raise interest rates to entice them into the market. But that can drive up rates nationwide.

Door No. 2: If foreign debt markets dry up, we can always sell to ourselves and the largest domestic purchaser of federal debt is the Federal Reserve. Where does the Fed get the money? It creates it by cranking up its proverbial printing press and that generates inflation. How much inflation? It can get nasty due to the recent stimulus efforts.

Door No. 3: Raising taxes enough to cover our debt will be political suicide. We Americans are not used to paying our way. We just push it off to future generations. Who cares about the Eighth Commandment when we can't yet see the people we're plundering?

Of course, there's another way to deal with deficits: Cut spending. Quit bailing out banks and Big Business. Let them fail so that our markets can adjust quickly and get back to business. President Obama recently trimmed a paltry $17 billion from his spending. Now that he's against big deficits after he was for them, perhaps he should consider reinstating the Mexico City policy and quit funding foreign abortions. We can't afford them now.