Obama warns of debt-inspired double-dip recession

With unemployment firmly above 10 percent and a comprehensive health bill looming in the Senate, President Obama warned that without debt-reduction measures the U.S. could enter a double-dip recession.

While the Senate ponders a comprehensive and expensive government-run health care initiative - one that has been fully backed by President Obama - and with U.S. unemployment sitting stubbornly at 10.2 percent, President Obama warned that the nation could face a double-dip recession should we not approach debt-reduction measures more seriously. Obama explained - in an interview with Fox News - that his administration must balance along a difficult line of fiscal responsibility and job-creating economic stimulus. "It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession," Obama said. America's debt currently stands at $12 trillion, a staggering sum that has caught the attention of China and has brought Chinese criticism upon Obama during the American president's recent trip through Asia.