Tuesday, August 25, 2009

Critically important

Geithner in a letter to Congress demanding asking that the current $12.1 trillion statutory debt limit be raised:
“It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations,” Geithner said in a letter to Senate Majority Leader Harry Reid that was obtained by Reuters.
Like Paulson before him, Geithner deals in blackmail like it's his mother's milk.

The limit was last raised in February, but $2tn of new debt are forecast for 2009, and $1.6tn for 2010. Who wants to bet that $3.6tn for 2009-2010 will be enough?

If "citizens and investors" are confident that the US will meet its obligations, they're a bunch of rubes, unless they think that meeting its obligations with monopoly money is OK.
(h/t cryptogon)


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