Obama’s Little Default Secret Gets Out

Barack Obama and his Treasury Secretary, Timothy Geithner, have been telling everyone who will listen that the U.S. will default on its debts if the debt ceiling is not raised, pronto.

“The yellow light,” the president said, “is flashing.” “By August 2nd, we run out of tools to make sure that all our bills are paid. So that is a hard deadline.”

Curiously, though, just a week away from that “hard deadline,” the stock market is not panicking, and all is quiet on the Asian trading front, too.

What gives?

It seems that Barack Obama and Timothy Geithner have been assuring banks that what the White House has been telling the rest of us is pure bunk, fit only for the unwashed ears of the lowly American masses, including those fearful American grandmas living on the edge of starvation on tiny little Social Security checks.

From Fox Business (h/t The Strata-Sphere):

While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn’t raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.

In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn’t raised by the August 2 date.

America, who have you elected?

Cross-posted at Bread upon the Waters.