A candid moment of honesty?
It is said that even a broken clock is right twice a day. Given that, it may be Treasury Secretary Timothy Geithner moment in time for honesty.
Geithner testified before the Senate Budget Committee yesterday making some interesting comments on the budget plan that President Obama proposed. It was expected for Geithner to tow the line for Obama as he has done every other opportunity, but instead he calls the President’s budget plan “unsustainable” with “excessively high” interest payments.
The Blaze uses a graphic to illustrate Geithner’s reluctant obligation to criticize the Obama’s budget plan. Hint, by 2021 there are $844 billion reasons.
But at the end of the day Geithner urged extreme caution in regard to the debt limit.
“I would caution everybody against taking any risk that Congress does not act to increase the limit in the time frame we need,” Geithner told the Senate Budget Committee.
“We cannot afford to let the markets lose any confidence that ultimately the Congress will act well in advance of any time that we’re going to hit the limit, because that would be catastrophic, and cause grave damage to the expansion underway,” he added.
The Treasury has said it will reach the statutory debt limit sometime between April 5 and May 31, although the date could be staved off by about eight weeks if Treasury takes extraordinary measures.
Once the limit is reached, the Treasury would no longer borrow to meet day-to-day spending needs, including payment of interest on Treasury debt.
Geithner certainly shares responsibility for the fiscal crisis America is in now. Is this a revelation for Geithner or is he trying to wash his hands?