Geithner: Republicans responsible if US defaults

[IDemo]

Source: Associated Press

updated 5/18/2011 9:09:24 AM ET 2011-05-18T13:09:24

NEW YORK — Treasury Secretary Timothy Geithner said Tuesday that if Republicans insist on passage of their budget plan as a condition for approving an increase in the nation's borrowing limit, they will be responsible for the consequences.

Speaking to a New York audience, Geithner said that Republicans would bear responsibility for the first debt default in the nation's history if they insist they will not vote for an increase in the $14.3 billion borrowing limit unless they win approval of a House Republican budget plan.

"If Republicans try to impose that plan on this country as a condition for raising the debt limit, then they will own the responsibility for the first default in our history, with devastating consequences," Geithner said in a speech to the Harvard Club of New York.

Geithner noted that the country reached the current borrowing limit of $14.29 trillion on Monday. He said he has begun deploying a series of bookkeeping maneuvers to avoid a debt default but that he will run out of maneuvering room around Aug. 2.

Read more: http://www.msnbc.msn.com/id/43075566/ns/politics-capitol_hill/

[Turbineguy]

1. All the more reason for them to do it.

[ErikJ]

33. 20 years of GOP President deficits since 1980.

and 9 of those were record deficits and they raised the debt limit every time. Hypocritical frauds.

[on point]

2. Enough of being polite to right wing crazies. Tell it like it is!!

[Iliyah]

4. They don't care, well

especially the ones with no money. The ones with money do care and are advising their trolls to threaten but don't take it too far b/c they like the Koch Brothers, Wall Street, and US Chamber will lose a whole a lot money. Also gold will go down. At this point in time they must kept the dollar strong.

[blueclown]

3. Please. Geithner is at fault too.

Not to disagree fully with Geithner, as Republicans should shoulder most of the blame if the debt limit deadline has passed, but little Timmy should take some of the blame too.

[Kurmudgeon]

8. Sorry, but no, this is the GOP's screwup, the old blame both sides thing won't work this time. n/t

[StarburstClock]

32. Sorry but yes!

The old call the poster wrong thing won't work this time. The financial system is a propped up failure being led by a democratic administration at the moment. Criminal banks were "too big to fail" and given 100s of billions by guess who?

[AC_Mem]

Sorry but NO

"Criminal banks were "too big to fail" and given 100s of billions by guess who?"

Um, BUSH?

Bush enacted TARP and signed off on the bailout.

President Bush- not President Obama- enacted TARP and signed the Bank bailout into law towards the end of his presidency. And yet a large percentage of Americans believe that Obama is responsible. -snip-

http://www.huffingtonpost.com/robbie-gennet/bush--not-obama--enacted_b_678682.html

[Name removed]

65. Deleted message

Message removed by moderator. Click here to review the message board rules.

[RUMMYisFROSTED]

62. Who? G.W. Bush. That's who.

:eyes:


Chimp signed TARP into law in October 2008.

[girl gone mad]

38. Right, because the administration didn't support extending the Bush tax cuts..

and throwing trillions at the banks, and extending the wars.

[freshwest]

57. No, it won't. The 'they are all the same' mantra is just surrendering to conservative memes.

[PassingFair]

9. I'm with you...Summers, Rubin and Geithner all bear responsibility.

As regulators and overseers they *ucked up.
Then they arranged to bail out the abusers.

AIG anyone?

[emulatorloo]

11. No this is totally the Republicans. If they refuse to raise the debt ceilling we are FUCKED.

[PassingFair]

14. We're already fucked.

Did you sleep through it?

[emulatorloo]

22. I know that. But we are going to be fucked beyond that. More fucked than we can imagine,

All because the Republicans are grandstanding for their base.

[Abq_Sarah]

41. And if they do, we're fucked

There is a limit to how long we can just kick the can down the road.

Neither side wants to do anything because it's likely that the voting public is going to be pissed off no matter what party is in control so everyone plays musical chairs and prays the other side is left standing when the bottom falls out.

[bbinacan]

48. Wrong

Why raise the debt ceiling? If we keep doing that, than we are TRULY FUCKED!!!! I think the US needs a good slap on the nose with a credit rating drop below AAA. It's time to get our house in order.

[rfranklin]

28. Two different things... yes they are guilty in the runup and bailout...

but refusing to raise the debt ceiling is an act of terrorism when they know that there will be another financial meltdown if there is a so-called "default."

Plus the fact that the Republicans ran up the debt with the intention of doing exactly what they are doing--terrorizing Americans into giving up the New Deal.

[pnwmom]

20. Why? No one has ever held the debt limit hostage before.

What the Rethugs are doing now would have been considered unconscionable.

[Vinee]

45. Obama voted against raising the debt limit in 2006. here are his exact words on this issue back then

"Over the past 5 years, our federal debt has increased by $3.5 trillion to $8.6 trillion.That is “trillion” with a “T.” That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next 5 years, between now and 2011, the President’s budget will increase the debt by almost another $3.5 trillion.

Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the Federal Government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation, and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated gulf coast in a way that honors the best of America.

And the cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden domestic enemy, robbing our cities and States of critical investments in infrastructure like bridges, ports, and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.

Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities.

Senator Barack Obama
Senate Floor Speech on Public Debt
March 16, 2006"

[ozone_man]

54. That was then, this is now.

Deficits mattered then, but not now. Don't you get it?! Obama needs this $1.5T deficit. He wants it to bail out Wall Street indefinitely, to end social security payroll tax, killing social security, for insurance companies, and for more wars, the MIC must never be cut.

[Vinee]

68. That's the price you pay for change you can believe in. nt

[still_one]

55. Not for this. The republicans are effectively holding the country hostage, and if the debt limit is

not increased, the republicans will be FULLY responsible

[blueclown]

61. Who's fault is it for the debt being so high in the first place?

Trust me, I am not completely absolving GOP of the blame, but Tim needs to take some blame for this too.

[still_one]

63. I know you are not, but the debt started to get out of control with reagan. I remember them saying

that the countries debt does matter, and no one questioning that

[TomCADem]

70. So, You Endorse Ending Medicare To Reach A Deal?

Disagree, this is on the Republicans.

[bvar22]

5. OMG...What will Fox News say????

I despise Geithner,
but give him an Attaboy! for correctly & publicly assigning the responsibility to The Republicans.

The sad news is that this is so uncommon from the post-partisan "Democratic" Party
that it evokes cheers.
It should NOT be noteworthy.


"There are forces within the Democratic Party who want us to sound like kinder, gentler Republicans.
I want a party that will stand up for working Americans."
---Paul Wellstone


"By their works you will know them."

[florida08]

19. Ditto what you stated very succinctly

[lark]

21. Yeah, our post partisan president want Dems to make nice

with the Repugs and let them have their way. When will the man even show even one drop of compassion for working and poor folks, the only spine I've seen from him was with Osama.

[NewJeffCT]

31. It will conveniently be ignored

just like most of the media will ignore Geithner's statement.

[sulphurdunn]

42. Amen.

[DonCoquixote]

59. OMG

But you know of course that many here will happily assist the GOP with the "it's Obamas fault" not that O should not have grown a spine eariler, but some here think that a GOP winning 2012 is the key to that hoped for collapse that will somehow put them on top.

[bvar22]

67. "many here will happily assist the GOP" ?

If you mean those cheering for Post-Partisan Centrist Compromise on issues and values that used to be Democratic Party Life Blood,
then you may have a point.


Most of those making noise, like myself, LOVE the Democratic party,
have worked FOR and voted FOR "Democrats" for decades,
and don't want to see Party of FDR/LBJ turned into a 1/2 Republican Chamber of Commerce APPROVED abomination.
We are carrying the message of Harry Truman:

"I've seen it happen time after time. When the Democratic candidate allows himself to be put on the defensive and starts apologizing for the New Deal and the fair Deal, and says he really doesn't believe in them, he is sure to lose. The people don't want a phony Democrat. If it's a choice between a genuine Republican, and a Republican in Democratic clothing, the people will choose the genuine article, every time; that is, they will take a Republican before they will a phony Democrat, and I don't want any phony Democratic candidates in this campaign."-- Democratic President Harry Truman

QED: 2010

[guruoo]

6. knr

[SpiralHawk]

7. Republicons and their so-called 'conservative' economics screwed America's pooch

Any unbiased observer is well aware of Republicon economic FAIL & pass blame baloney...

[Lasher]

10. Well no shit

It's appalling, seeing how this turd in a punchbowl needs pointing out to the mindless horde.

[Bill USA]

12. I wonder if Mr. Geitner's frankness could rub off on Mr. Obama? It would be wonderful, but guess I

better not hold my breath.

recommended!

[socialist_n_TN]

13. Well yeah Timmy. IF it happens it would be the

Republican's fault, but it ain't gonna happen. This is just a big bluff. Wall Street wants the debt limit raised, so it WILL be raised. This is just a way to bluster and see how much they can get of their "austerity" passed.

Ready to go GREEK on their ass?

[underpants]

17. You are right it won't happen it can't. They want to strip the government of money but this is ....

no really possible. RW radio is attacking Boner for saying at the outset the obvious - this can't happen. Once again the RW leads the followers around by the nose on contrived BS only to not do it at the end (because they never meant to). They, as you state, are bluffing. Please please please Dems don't use that as cover for doing what we all know will be a disaster.

[Bill USA]

15. Mr. Geitner finally is saying what apparently no-one else in D.C. has the temerity to say.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x603035

[Corruption Winz]

16. So... it's news that the government is making people take accountability?

Fascinating. I can't wait to they make it known whether or not people that commit crimes need to be put in prison and if people that lie should tell the truth.

Fingers crossed.

[liberal N proud]

18. The republicans have worked hard and long to bring this nation to its knees

Why would they stop now?

[lark]

23. Dems sure don't stop them, they collude with the practice

of giving all the nations' money to the most rich and fucking everyone else.

[liberal N proud]

24. That is what really pisses you off, doesn't it?

[craigmatic]

25. He's right. The repigs are playing economic chicken.

This would be great if only people actually listened to/respected Geitner. He's the low man on the totem pole in terms of people I respect in this administration right in front of Duncan.

[FarLeftFist]

26. It really will be their fault

But they don't really give a shit about America's best interests.

[Avant Guardian]

27. OK, then draw a line in the sand

Tell them you will NOT negotiate with blackmailers.

[Rosa Luxemburg]

29. The public needs to listen to this

[NewJeffCT]

30. While he is correct in saying that, the blame will mostly fall on Obama

If the economy crashes and sends us into a Depression, the blame will mostly go to Obama. Presidents get the lion's share of the blame if the economy is bad, just like they get the majority of the credit if the economy is good.

[humbled_opinion]

35. True it was a Democratic President that said...

The Buck Stops Here.... So Obama will get the blame... no matter what Timmy boy wants to believe.

[humbled_opinion]

34. Well I work with a bunch of Teahadists

They are now bringing out quotes like this....

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits the public treasury with the result that a democracy always collapses over lousy fiscal policy, always followed by a dictatorship."

They claim it is the Democrats using crisis to create entitlments i.e., Social Security, Medicare/Medicaid, Welfare, WIC, extended Unemployment compensation, Stimulus, and now Healthcare, have created a government controlled nanny state that is unsustainable.

They claim that every time Obama says tax the rich it is exactly his desire to take money from the public trust in support of programs to benefit the majority and will eventually result in the collapse of the economy. They claim we are in the dependency cycle now and after the collapse we will be ruled by Dictatorship.

I try to defend by saying well most of the defecit is due to Bush unpaid for wars, tax increases for the rich and the TARP bailout....

I get hammered with, if the above social programs are so important to Democrats then why didn't Obama abandon the failed wars, and stop the Bush tax cuts so he could use that revenue to shore up the social programs? They also claim that TARP has been paid back by most of the banks only the auto industry that Obama bailed out hasn't paid their money back so they claim that the TARP portion is Obama's defecit.

I default to the overblown Pentagon budget and surprisingly I find many that agree with me that defense spending should be cut but that doesn't stop them from their desire to end all of the social safety net programs....

[socialist_n_TN]

37. Sooo, basically they're saying that they hate our

freedoms?

[NewJeffCT]

39. You can hit them with this graph on who has increased the debt...

Also, the TARP money was paid back on Obama's watch (wasn't it Elizabeth Warren who was overseeing that?) - I believe the initial trillions in bailouts before TARP (doled out by Bush and Paulson) has not been paid back.

[NewJeffCT]

40. Also, hit them with the Reagan quote demanding an increase in the debt ceiling

Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and on the value of the dollar in exchange markets. The nation can ill afford to allow such a result. The risks, the costs, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns.

http://thinkprogress.org/2011/05/16/reagan-debt-flashback/

[Bill USA]

36. this appears on MSNBC.com Wonder if they will report it on network news? Yeah, RIGHT!

http://www.msnbc.msn.com/id/43075566/ns/politics-capitol_hill/

[WoodyM90]

43. Don’t worry, the limit will be raised.

It has been said if a child wanted a puppy, he should ask for a pony. When the republicans ask for a pony, Obama will give them a Mustang convertible.

[WoodyM90]

44. Don’t worry, the limit will be raised.

It has been said if a child wanted a puppy, he should ask for a pony. When the republicans ask for a pony, Obama will give them a Mustang convertible.

[unkachuck]

46. "...Republicans would bear responsibility for the first debt default in the nation's history..."

....atta-boy, timmy....

[bbinacan]

47. FUCK GEITHNER

I don't need this fear mongering. Cut spending. I can't believe I may actually agree with Repugs for once in my life. Simple math- If you take in X and spend X+Y the result is not good. Cut all, and I mean ALL, expenditures across the board.

[unkachuck]

49. "Cut all, and I mean ALL, expenditures across the board."

Tax all the rich, and I mean ALL the rich, fairly across the board.

....I might agree with you if I believed the cooked numbers and narratives, but I don't.

[bbinacan]

51. Amen

Let's tax all income above $50,000 at 100%. Add that to a cut in expenditures and we may get it right.

[unkachuck]

52. exactly, but make it military expenditures; now you're making sense....n/t

[bbinacan]

53. I said all expenditures. n/t

[TomCADem]

71. So, You Endorse The Republican Call To End Medicare?

I blame the Republicans for this current upcoming crisis.

[madrchsod]

50. well duh...but it`s not going to happen.

[still_one]

56. I suspect you are correct. The republicans are playing to their insane base, but in the end they

will increase the debt limit

If they don't it will be most interesting, and I don't mean in a good way, and even more suffering will be caused by it

[creeksneakers2]

58. Offer to cut the money the GOP demands

only take it out of the military.

[and-justice-for-all]

60. That is what pukes want, for the US to fail...

and for the Government to faulter. As long as they can do that, I do not think they give a shit.

[jtuck004]

64. Do you seriously think people who can't pay their bills will think that hard?

They will get rid of whoever is in the way in some blind hope that the next one will be the magic pill. It's the United States, Timmy.

Go play with your banker friends.

Idiot.

[MaynardGeeKrebs]

66. All according to plan

I'm afraid we're about to see a long term plan be fulfilled. I can clearly remember the Jr. Bushie describing his plan for radical tax cuts to a reporter in the run up to the primaries before his first electoral theft. The reporter asked him what he would do if the cuts failed to generate growth and a financial crisis ensued in the form of debt. His reply, as best as I can recall, was something like: Weellll (snicker) thaaan (snicker snort) weud just have to (smirk snicker snort) cut entitlements and (heh heh heh) so cee al programs (heh heh smirk snicker snort smirk heh heh).

When I heard this, a light bulb immediately went off and I thought to myself "that IS their plan".

They've squeezed the middle class and poor for every cent they're worth while filing the pockets of the ultra rich, now they're ready to go in for the final kill.

[TomCADem]

69. K & R! Thanks for calling like it is!

With McConnell, Ryan and Coburn demanding the end to Medicare, and holding the economy hostage, we need to tell it like it is.