President Obama has warned us of a pending economic catastrophe. He ought to know. He's creating one. The new programs he promised in his speech to Congress will massively increase federal spending. He promised universal health care, universal college education, subsidies for alternative energy, and more bailout money for banks and homeowners This is in addition to the money already appropriated for economic stimulus and the TARP. The result will be a deficit approaching $3 trillion. Instead of learning a lesson from the home mortgage meltdown, he has decided to employ the same economic model. Just as a person overextended himself by taking out a loan he could never pay back, Obama wants the whole country to overextend itself by taking out loans it will never pay back. The Treasury will borrow the money by selling bonds. The Federal Reserve will create money to buy the bonds and the Treasury will spend the money on all the things Obama wants to do. The government is essentially borrowing from itself with money it creates. It's a deal that would make Bernie Madoff proud. But just as there is a day of reckoning for the homeowner who took out a mortgage he couldn't afford, there will be a day of reckoning for a country that borrows beyond its means. Obama's plan to increase taxes on 2 percent of the population won't even make a dent in the mountain of debt he is piling up. All of these new spending programs will, at some point have to be paid for. That increase in taxes for 2 percent will become an increase for 5 percent, then 10 percent, then 20 percent and ultimately 100 percent. The massive expansion in the money supply will debase the currency and lead to inflation. Higher inflation will lead to higher interest rates and higher unemployment. The Obama spending binge will make the current situation much, much worse. It will give us higher prices, higher interest rates, higher taxes, and higher unemployment.