Looks like there will be more finger-pointing and fighting in Washington! You have to appreciate the gesture of President Obama in trying to have a bipartisan meeting where they would ideally sit down and figure out the common ground so that next week on Monday we could pass a health care reform bill (or barring some kind of actual agreement that the Republicans would look selfish, out of touch and downright wrong for America, gosh darn it. Perhaps the Tea Party would come to its senses and start drinking the liberal kool aid).

But what Secretary of State Hillary Clinton is up to this wee is more like it. Reuters reports that she said "outrageous" advice from Alan Greenspan played a role in creating the massive U.S. budget deficits. And once she has firmly pointed the finger at the former Federal Reserve Chairman, she expands the reach of his actions by saying that the deficit itself puts our national security at risk.

"It breaks my heart that 10 years ago we had a balanced budget, that we were on the way of paying down the debt of the United States of America. I served on the budget committee in the Senate, and I remember as vividly as if it were yesterday when we had a hearing in which Alan Greenspan came and justified increasing spending and cutting taxes, saying that we didn't really need to pay down the debt -- outrageous in my view," said Clinton.

It is a little funny to hear a Democrat talk about paying down debt, right? But she does have a point about having a balanced budget 10 years ago. We had a surplus that one year. Can you imagine that???
At this point, Clinton is actually answering to Congressional panels and having to defend the $52.8 billion budget request. As part of that defense, she is characterizing the massive debt we are in as sapping U.S. strength around the world.

She’s right. We are broke as a joke and I feel like we could really get called out on it if everything comes to light. Goldman Sachs basically helped the Greece government run a secretive swap something or other that now has them dragging down the euro they are so in debt. That’s an American investment firm. China decided to adjust their holdings of some U.S. Treasury bonds…not a good thing at any time, but certainly not now while we are having a rough go of it.

"We have to address this deficit and the debt of the United States as a matter of national security not only as a matter of economics. I do not like to be in a position where the United States is a debtor nation to the extent that we are. The moment of reckoning cannot be put off forever. I really honestly wish I could turn the clock back," said Clinton.

Everyone is worried that China will use the $755 billion in Treasury bonds they own to influence U.S. policy. Yes, they will.

Photo Credit: US Mission Canada (via Flickr under CCL)