Timmy "B*tch Sauce" Geithner Gets on His Knees For a Higher Debt Ceiling
Read the following January 6, 2011 letter from Treasury Secretary Tim Geithner to Senate Majority Leader Harry Reid very carefully:
Reaching the debt limit would mean the Treasury would be prevented by law from borrowing in order to pay obligations the Nation is legally required to pay, an event that has no precedent in American history. Such a default should be understood as distinct from a temporary government shutdown resulting from failure to enact appropriations bills, which occurred in late 1995 and early 1996. Those government shutdowns, which were unwise and highly disruptive, did not have the same long-term negative impact on U.S. creditworthiness as a default would, because there was headroom available under the debt limit at that time.
I am certain you will agree that it is strongly in our national interest for Congress to act well before the debt limit is reached.
Well paint me totally stupid but why do we need to borrow all this money to pay for things we have already promised to pay for? It's the same reason you don't put your rent on your credit card.
Then in his most recent love letter to Congress begging for prompt action to stop a default before it happens, Geithner says this:
As I have written previously, default by the United States on its obligations would have a catastrophic economic impact that would be felt by every American. A broad range of government payments would have to be stopped, limited or delayed, including military salaries, Social Security and Medicare payments, interest on debt, unemployment benefits and tax refunds. A default on the Nation’s legal obligations would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans. Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover.
Here's the funny part about that... don't we pay into Social Security from our paychecks? So shouldn't there be, then, in theory, a fund that, oh I don't know, holds that money and distributes it to Social Security recipients?
Ponzi schemes fall apart when there are no more new investors to pay the old and the entire ruse is exposed for what it is - a fraud. How is this any different?
WSJ has a bit more:
Mr. Geithner said a default would have the "perverse effect" of making the country's debt problems worse. He said it would lead to a recession, which would drive down tax revenue, while putting more pressure on "social safety net programs."
This would "channel a larger share of our national wealth toward paying our creditors rather than reducing our debt or making productive investments in education."
How is that, exactly? We're already (still) in a recession. Most of our national "wealth" already goes toward paying our creditors. Payday loans are impossible to get out of once stuck in the vicious cycle of using them to pay off previous loans, and that's exactly what's happening here. Little Timmy can say what he likes, those of us with two brain cells to rub together know better.
Suck harder, Timmy.