Geithner: Damage From Debt Default ‘Irrevocable’
May 14 (Bloomberg) — U.S. Treasury Secretary Timothy F. Geithner said a default arising from failing to raise the debt limit could cause “irrevocable damage” to the economy, risk a “double-dip” recession and increase unemployment.
“Default would not only increase borrowing costs for the federal government, but also for families, businesses and local governments — reducing investment and job creation throughout the economy,” Geithner said in a letter dated yesterday to Senator Michael Bennet, a Colorado Democrat.
Failing to raise the $14.29 trillion debt ceiling would “force the United States to default” on obligations such as payments to service members, citizens, investors and businesses, Geithner wrote. “This would be an unprecedented event in American history. A default would inflict catastrophic, far- reaching damage on our nation’s economy, significantly reducing growth and increasing unemployment.”
Read the rest here: Geithner: Damage From Debt Default ‘Irrevocable’.
The US economy will do good dispite what the federal government goes through. Geithner’s presumption is based on a leftwing fallacy that the US government is what makes a strong economy. The truth of the matter is that the government can not make a good economy, the government, when it gets to large and overbearing will only destroy a good economy. We have seen this happen these past 3 years with the policies of the Obama administration and the Democrat leadership.
Let the US government fold, with a 14 trillion dollar debt the organization can no longer operate in its current form. When the government folds it will have no recourse but to go back to its original design-getting back to the nuts and bolts of the constitution.
Geithner is a leftist, in his mind the US government is the economy, this is an extreme departure from reality.
The US economy is made up of markets and people providing goods and services when freedom reins the economy expands; prosperity, productivity, wealth are created, with jobs and low unemployment becoming the incidental by-product.
The Democrats never could figure this out or they just don’t want to figure this out.
The Democrats policy of big and intrusive government will come to an end and the sooner the better.