Geithner is nothing but Obama’s banking pawn. Who said this about the debt-ceiling?
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure,” he said. “It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.”
That was Senator Barack Obama back in 2006 when debt ceiling increases were bad under Bush.
From The Hill:
The United States will reach its $16.4 trillion borrowing limit on Dec. 31 and undertake “extraordinary measures” to avoid default, the Treasury Department informed congressional leaders in a letter on Wednesday.
National deficit was $10.262 trillion when Owebama took office. In 4 years, Owebama has added $6.2 trillion to the national debt. How did his promise to cut the deficit in half work out?
The notice about the debt ceiling came packaged with a stark warning from Treasury Secretary Timothy Geithner, who said the policy uncertainty stemming from the “fiscal cliff” makes it impossible for him to say with certainty how much time lawmakers have left to raise the borrowing cap.
Guess having no budget isn’t a problem.
“Given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures,” Geithner wrote.
The Treasury chief, facing the second debt-ceiling breach of his tenure, said the government has $200 billion worth of “extraordinary” actions it can employ to prevent default, typically by shifting funds from various nonessential purposes to essential government functions.
Kicking the can down the road is the common tactic for Team Obama.
Under normal conditions, that would buy policymakers about two months to haggle over the debt limit before an increase would be required, Geithner said. The last time the government reached its debt limit, in May 2011, Treasury’s measures delayed the need for a debt-ceiling increase until August.
But the uncertain fate of the nation’s tax and spending policies in the talks over the fiscal cliff has clouded Treasury’s calculations, Geithner said.
If policymakers do not strike a deal and the U.S. goes over the fiscal cliff, the combination of tax hikes and spending cuts is expected to push the U.S. economy into a recession.