May 14, 2011

Geithner threatens a recession.

Guy in a Bigfoot suit: just as relevant
Treasury Secretary Tim Geithner had the nerve to say that if the debt ceiling wasn't raised, there was a real danger of a double dip recession.  Those two things have next to nothing to do with each other.  A double dip is possible based on poor economic decisions of this administration and previous Congresses.   Nevertheless, Geithner says raise the debt ceiling or else...
Treasury Secretary Tim Geithner said if Congress fails to lift the debt ceiling and the U.S. defaults on its obligations “this abrupt contraction would likely push us into a double dip recession,” painting the most explicitly dire prediction to date of the consequences of inaction.
Don't worry, I have a solution for Mr. Geithner.  Just have the president issue everyone a waiver on the recession.  He should be used to it by now.

But the article goes on to point out the real fear;
“A default would inflict catastrophic far-reaching damage on our nation’s economy, significantly reducing growth and increasing unemployment,” said Geithner in the letter to Bennet which was dated May 13. “Even a short-term default could cause irrevocable damage to the economy." 
Geithner has imposed an August deadline for Congress to lift the $14.3 trillion debt ceiling, but lawmakers are still negotiating over Republican demands to tie the move to spending cuts. And a portion of the GOP still remains skeptical about the need to act by the deadline at all, arguing that the consequences have been overstates. 
In the letter Geithner walked through the doomsday scenario he has been describing on the Hill. Default would cast doubt on the full faith and credit of the U.S., which would scare away investors and enable those remaining to demand higher interest rates on Treasury securities, which would have far-reaching negative ramifications.
Here's the problem with that. The idea of capping out of control spending is a somehow a bad idea? Of course they'll say no to that, but that cutting spending can't be tied to capping the debt....wait, what?!?

Here's another idea - how about capping the debt ceiling and then figuring some emergency measures to make sure you don't exceed it????? C'mon people, put your backs into it!


  1. Wow, Tiny Tim is actually trying to claim that we are not in a depression RIGHT NOW? On which planet does he live?

  2. Uranus? I know, juvenile, but I couldn't resist.

    I guess until he sees it on TurboTax he won't be sure about the whole recession/depression/recovery thing.

  3. As i said in my blog today. Every time taxes were lowered, revenues went up. Yet the morons spent more each time then taken in. When they cut spending, they only cut a bit of the spending increase, not spending! So now we have Tiny Tim (I like that BTW) crying the world is coming to an end. My slant? Bite Me! Cut spending!


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