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.
McConell 9:33 PM on 07/31/2011 Permalink |
“What gives?”
Dunno. Why don’t we ask Mitch McConell, John Boehner and a whole array of Republican legislators, as well as almost every notable economist in the country, who strangely, also agrees with the Obama administration….
Or, should we take the words of Bachmann, who does not even have one economist in her stable? The same Bachmann who was confused over the difference between deficit and debt? The same Bachmann who thinks that the debt ceiling implies future spending, instead of incurred spending authorized by the Congress under a budget she herself, among many other fellow Republics, had approved?
Or, should we take the stories from the impartial Fox News, citing unnamed sources, over everything else?