In the grand tradition of scare tactics in politics, few do it as often, or as deceptively as a Democrat.
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,”.
Problem? The U.S. would not default on its ENTIRE bill paying if the deadline is passed. In fact, very little of the government would be affected.
“A default would inflict catastrophic far-reaching damage on our nation’s economy, significantly reducing growth and increasing unemployment,” said Geithner in the letter.
My gosh, jobs too? The kitchen sink in play now.
Ultimately he said the biggest threat would be a crisis of confidence in the United States. Confidence in the America’s ability to meet its obligations creates demand for Treasury securities in the first place, which lowers the borrowing costs for the government and in turn consumers. It has made investments in Treasury securities a safe haven for investors in times of panic.
Did Timmy notice that the Chinese have been dumping treasury? Did he also notice that the Debt and Deficits are threatening the very credit rating of the USA?
It is especially disgusting that a tax-dodging, deadbeat is out with this kind of rhetorical nonsense. Geithner should be fired, not taken seriously.