Here he is again today complaining that if the US defaults that it will be the Republicans to blame....can they all shut the fuck up already, stop blaming and just cut the damn spending....everyone knows, EVERYONE KNOWS that the debt ceiling will be raised and more debt will roll in, all this guy does is fucking cry and whine about the debt ceiling when we all know in a few weeks they are going to raise it once again....They are going to take it to the very end, and right before the very end they will raise the debt ceiling.... Republicans Will Be to Blame if US Defaults: Geithner Reuters | April 14, 2011 | 01:42 PM EDT Treasury Secretary Timothy Geithner on Thursday told Republican lawmakers that they would shoulder the blame if the country got too close to defaulting on its debt and roiled markets worldwide by not approving a debt limit increase. In yet another warning about the perils of not allowing the U.S. to borrow more to fund spending already approved by Congress, Geithner said it would be deeply irresponsible for lawmakers to use debt limit negotiations for political gains. Congress must agree to raise the $14.3 trillion debt ceiling or the legal amount that the country can borrow. But Republicans have said they are unwilling to do so without reforms on government spending and have threatened to take negotiations to the deadline. "(Lawmakers) will say there's leverage in it, we can advance it. But that would be deeply irresponsible and they will own the risk," Geithner said. "It won't happen in the end, but if they take it too close to the edge, they will own responsibility for that miscalculation," he said. Treasury has forecast that the limit will be reached by May 16. After that point, Treasury can take emergency measures to avoid hitting the debt ceiling. But those actions will only give the United States about a two-month window before Treasury is unable to issue debt to fund government operations. Geithner said lawmakers "understand that you can't take any risk the world starts to think the United States won't meet its obligations." "There's no conceivable way that this city, this government can court that basic risk," he said.
the stock market doesnt seem to be showing any concern about the debt ceiling issue.... although im sure the market will have a huge POP when they increase the debt ceiling!
Its a downward spiral from here. I remember a few years ago I was shocked when somebody mentioned that the national debt was at 7 trillion. Right now its almost doubled and there really isn't anything anybody can do to slow it down or stop it.
A default is a defacto repudiation of the private banking system known as the Federal Reserve. It may even cause the destruction of the private bank. The fed will be worthless with what... six months of default, maybe a year. At that point in time the 2012 election will be all about the new system and how the debt is restructured and repaid. It could be perfect or it could set off world war 3.