The Sky Did Not Fall Today, Mr. Geithner
Treasury Secretary Tim Geithner has been warning us for quite some time that the sky is falling – unless – we raise the debt ceiling.
“You can only cry wolf so many times,” a former economic official in the Bill Clinton White House told Reuters. “If you are jumping from May to July to August, you can see people thinking that maybe you can jump from August to October.
“If people believe you can stretch this to October — and the truth is, we really can’t — we’re in big trouble.”
Geithner first began warning in January of “catastrophic” consequences if the debt limit is not raised by Congress, saying then that the borrowing cap could be hit as early as March 31.
That prediction soon changed to April 5, but it was not until Monday — May 16 — that the ceiling was officially reached as the latest government bond sales were settled.
In early April, Geithner also said the drop-dead date for a debt limit rise, when the U.S. would begin to default on its obligations, was July 8. This month he changed that to August 2.
The Treasury says it can use “extraordinary measures” such as dipping into government pension funds to fend off default until August.”
Maybe Extraordinary measures should include cutting spending?
The sky was supposed to fall yesterday. I just looked outside, Mr. Geithner – it looks like the sky is exactly where it should be.
Might it be time to do something about that spending fix?