Skip to comments.Treasury Secretary Geithner says in letter to Congress US may go into default
Posted on 01/11/2011 9:41:29 PM PST by Angelus
It is one thing for Sarah Palin, media pundits, or economic analysts to speak on the potential insolvency of the US government, but when the US Treasury Secretary says this in a formal letter to Congress, Americans had better take note.
Secretary Timothy Geithner on January 6th sent a formal letter to Congress specifying that if they do not agree to raise the debt ceiling when it is reached sometime in March, the US will (and the word used is WILL) default on its debt.
Lew Rockwell.com posted an article yesterday on this action taken by the Treasury Secretary, and pointed out that in fact, the government at this point in time is bankrupt, and simply trying to postpone the inevitable.
A few months back, Laurence Kotlikoff wrote that "The U.S. is bankrupt." Using the governments numbers properly labeled, he found that the U.S. fiscal gap, which is the difference between the present value of projected spending and revenues, is $202 trillion. An IMF study of the U.S. finances found that it would have to double taxes to close its fiscal gap. This is an impossibility. It would destroy the struggling economy. Geithners statement confirms those of other analysts outside of the U.S. government.
(Excerpt) Read more at examiner.com ...
The entitlement programs/benefit programs - Social Security retirement (SS), Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), Medicare, Medicaid, Food Stamps, Subsidized Housing (Section 8 Housing), Temporary Assistance to Needy Families (TANF), Farm subsidies, that new federal program that gives free cell phones to welfare recipients etc
have mostly contributed to this disaster (a $14 Trillion disaster) but because these programs are sacrosanct it was impossible to get any type of reforms made. And not only did the Democrats halt reform efforts their goal has been to create even more entitlements i.e. Obamacare.
It already is, this just props the problem up a little longer.
Tax the gross assets of all ‘rats.
he’s jumping the gun that little pos
How do we “default” on our debts by raising the amount we are willing to go into debt??
One would think we’d be further from default by not taking on as much debt and cutting spending.
The financial logistics of raising the debt ceiling to avoid defaults must be balanced with real and immediate cut backs in Federal spending starting with Obamacare.
Don’t forget massive pension/retirement payments agreed to by local, state and federal officials to government workers.
The US obviously must go on a New Jersey diet x 10. But, if we actively use our resources (drill, Baby, drill) and get inexpensive energy back into the equation, America will prosper yet again.
Do all the right things and we have more than a chance; we will prevail!
o.k.... now, what can we do? he says, “we have been warned”. Yeah, we got the message after we went to the town hall meetings and were thrown out.... we got the message when we wrote and called our congress people, to no avail.... we got the message, alright.... WE DON'T MATTER!! the current obamanation regime is beating all of us down and stomping us into the ground.
so, when an article ends with “you have been warned”, it kind of makes me mad! Because, we have tried, and tried, and tried...... and been abused and beaten back.
the US is bankrupt. I saw the obamantion say those exact words during the last year on a tv interview with a snicker... yeah. he thinks it's funny... well, it is anything but funny to us who love this country...to those of us who didn't just spend weeks in Hawaii on someone elses money....
what we can do is to pray that God will once again place His hand over this country and save us from ourselves.
Not only is U.S. government debt spinning wildly toward a breaking point, but many U.S. states (such as California, Illinois, New York...) are in such horrific financial condition that they are beginning to resemble banana republics.
1. Cut taxes.
2. Cut spending.
4. Drill, baby, drill.
Not a chance, though, that this administration will do any of these things. They will do the exact opposite.
I’m sure we can count on a mad scurry on the part of our ‘leaders’ to cut everything, find accounting errors, waste, and cut PBS, NPR, NEA etc. loose immediately, right?
If they really want to honor Gabrielle Gifford, they will surely pass the salary cut she was proposing for congress, right?
I think everyone needs to be on the lookout for a rather large false flag op in the near future. Because of this debt issue. The plates are falling.
I am not kidding. It’s the only thing that will get the pressure off Obama, the dems, etc. Focusing anger and blame on something else. Talking war-level type false flag op.
What would actually happen if we defaulted?
Yes...that IS the question...
I disagree. We are already beyond the point of no return.
There is no (peaceful) way back from here...it's either hyperinflation or default.
The politicians will not have the will to default so, I expect we'll eventually see hyperinflation.
Just my opinion.
The problem is that we are allowed to run deficits at all. Republicans go back and forth on decisions to increase spending, but always vote to lower taxes. Democrats go back and forth on tax cuts, but always vote to increase spending.
The only coalitions that form are ones lower taxes, sometimes votes to increase spending, but never a coalition to cut spending overall. That’s just an unsustainable reality - we have been living in a fantasy world since WWII.
“... the past century of liberals expanding government and attempting to create a socialist utopia have caused this to happen.”
Bike trails. It was the GD bike trails.
Your suggestions will not solve anything by March.