Turbo Tax Timothy Geithner will go down as the worst, most idiotic, Treasury Secretary in history. He is in total denial about the effects of the S&P credit downgrade.
WASHINGTON, Aug 7 (Reuters) – U.S. Treasury debt is as safe as it was before a Standard & Poor’s rating downgrade of the United States and Congress’ “damaging” debate over raising the country’s debt limit, Treasury Secretary Timothy Geithner said on Sunday.
Isn’t this guy one of those great economic minds Obama put into place? Isn’t this the same guy who also said Obama’s stimulus would “jump start” the economy and keep unemployment below 8%? You can trust Timmy because he is always on the money.
Geithner, in an interview with NBC/CNBC television, also called on European leaders to ensure that there is an “unequivocal financial backstop” for euro zone governments facing fiscal and debt problems.
Should the U.S. Treasury Secretary who has overseen the most U.S. debt in history be lecturing other nations about their fiscal situations or debt problems?
He added that a double-dip recession was unlikely if governments and central banks made good decisions.
We’re in a double-dip. Geithner just won’t admit it. The numbers prove this fact.
Asked whether Treasuries were as safe now as they were last week, Geithner replied: “Absolutely. And the judgment by S&P changed nothing.”
Typical. Geithner doesn’t understand economics or the effects a credit downgrade has on U.S. Treasuries. Also can’t forget about the higher interest rates coming around the corner.
Geithner continued the Treasury’s attack on the credit rating agency, which cut the U.S. sovereign rating late on Friday to AA-plus from AAA citing the political gridlock in Washington and a debt deal that produced less fiscal savings than the agency had prescribed.
“I mean I think S&P has shown really terrible judgment and they’ve handled themselves very poorly,” Geithner said. “And they’ve shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement.”
Geithner doesn’t want to point out that Senate Democrats have refused to pass a budget for over 800 plus days and the fact that Obama’s budget was voted down, 97-0, in a Democrat controlled Senate. It’s amazing that a guy who couldn’t operate Turbo Tax is trying to claim S&P doesn’t know basic budget math. That’s priceless.
Geithner said the S&P decision did not provide any new insight into the U.S. capacity to pay it bills.
“There is no risk the United States of America would ever not be in a position to meet its obligations,” Geithner said.
Geithner contradicts himself with that statement. For months he spoke about not meeting our obligations unless the debt ceiling was raised. Like Obama, Geithner finds lying very easy.
He acknowledged, however, that the “terrible debate” in Congress over raising the debt limit, which brought the U.S. government within days of defaulting on some obligations, raised questions about the U.S. political system’s effectiveness.
“It caused a lot of damage and that’s going to take a long time to heal that damage,” he said.
Geithner also said he was confident that China would continue to be strong investors in the United States, despite criticism from the Xinhua news agency that the “good old days” of U.S. borrowing were over.
Translation: We will continue to spend and borrow money from China to do so!