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Monday, May 22, 2017

Appearing with Senate Democrats Thursday afternoon, Treasury Secretary Tim Geithner repeatedly urged Congress to raise the debt ceiling, the federal government’s statutory authority to borrow money.

“We have no way to give Congress more time to solve this problem, and we are running out of time,” he warned, a pained visage creeping across his face. “The eyes of the world are on us…. We need to send a definitive signal that we are going to take the steps necessary to avoid default.”

The latest request came just hours after Federal Reserve Chairman Ben Bernanke told senators that the massive, speedy cuts in government spending Republicans are demanding be enacted in concert with a debt ceiling hike would stall the economy.

“I only ask … as Congress looks at the timing and composition of its changes to the budget, that it does take into account that in the very near term the recovery is still rather fragile, and that sharp and excessive cuts in the very short term would be potentially damaging to that recovery,” Bernanke told a meeting of the Senate Banking Committee.

Bernanke, a Republican appointed by George W. Bush, is siding with Democrats in Congress as the Tea Party-ruled Republican caucus continues to insist on “no tax hikes on job creators” while pushing for cuts that will inevitably hurt economic growth and stall job creation. Bernanke did not miss the opportunity to get in another plea of his own for an increase in the debt ceiling.

“It would be a calamitous outcome,” Bernanke said of failure to do so by August 2, when Geithner has said the U.S. will default. “It would create a very severe financial shock that would have effects not only on the U.S. economy, but the global economy.”

Republicans have backed themselves into a corner on this one; Wall Street, Treasury, Ben Bernanke, and every independent economic forecaster out there is closing in, demanding a dose of rationality before it is too late.

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Copyright 2011 The National Memo

15 Responses to Geithner: “We’re Running Out of Time”

  1. I agree with Chairman Bernanke it would be “calamitous outcome. If the Democrats placed all the cuts in motion at the same time. It would create a shock wave that would effect the global economy. Study your history look what the Stock Market Crash of 1929 did it created a global depression.

    The House Republicans don’t want a tax increase. I suggest that they vote and enact the bill that was placed on hold on December 30, 2010. The Bill was extended to 2012. Raise the ceiling debt and and allow the law that was extended to come into effect on September 1,2011.

    I have one additional comment to make President Obama is not the only candidate up for re-election every member in the House is also up for re-election.

    Ronald W. Beeny

  2. Break the impass. Get together and make the compromise work. You are all playing “chicken” with our future. Our prayers are with you to make the decisions.

  3. The republican party leaders are being told by the business community, by S&P, Moody’s, Treasury, The Federal Reserve, the World Bank, that holding the debt ceiling “hostage” to maneuver President Obama into deep spending cuts without raising revenues is sheer madness. The debt ceiling was raised many times during George Bush’s presidency, and the Bush tax cuts are directly responsible for a sizable chunk of the current deficits. I look within the Republican Party for voices of reason and so far only Lindsay Graham appears to have the fortitude to speak up against the Cantor lead Tea Party freshmen in the House. This group dismisses what they are being told about the consequences of not raising the debt ceiling. What does a country do when a major political party refuses to negotiate rationally? Is willing to destroy the village in order to ( in it’s view) save it?

  4. The Republican refusal to eliminate oil subsidies, and tax breaks such as corporate jets is sheer madness. The Republicans do not have the interests of the typical American at heart. The only people they want to help are the wealthy. The tea partiers are a united minority leading us to financial ruin. They are in effect traitors to the U. S. A.

  5. The debt limit is unconstitutional. It’s the 14th amendment Section 4. Obama doesn’t need permission from the congress to raise the debt limit because under the constitution, the debt limit can not legally exist. Obama taught contitutional law at Northwestern, so it’s highly unlikely that he is unaware of this detail.
    If we get to the point where Obama has played the good guy defending the middle class against the Republican bad guys defending the rich long enough that it creates an artificial crisis, then Obama will play the hero and invoke the 14th amendment and save the day for the middle class, Wall Street(accidentally- but no plan is perfect), made the Republicans look like demonic fools, and insure a Democratic landslide in 2012.
    A similar thing happened when Obama allowed the Republicans to extend tax breaks for the rich in order to keep those for the middle class. He let the Republicans push him into extending them for two years. This was in 2010, so he was letting the Republicans push an issue on which 75-80% of voters agree with the Democratic position into the middle of the 2012 election.
    I can see why the Republicans consistently run on the theory that government doesn’t work. It works just fine. You just have to not belong to an entire party that is constantly getting outsmarted by one man.

  6. Where are our PATRIOTIC Americans? Where are the people who have been blessed with the ability and the God given chance to become wealthy. They have worked and sweated to obtain what they have, so why don’t they step up now and give back to the country that made it possible. When I read about a motion picture star that makes anywhere from 1 to who knows how much per picture or a man who has so much money all he can do is start a new reality series, why can’t they step up and say “Let me help out my government and my fellow Americans.” Why should those who have the least, always be expected to make the sacrifice and spend endless days worrying about whether the money they worked for all their lives will show up so they can pay their bills that don’t stop just because our government can’t make a simple decision. Please, those who have, step up to the plate and remember a famous American who said the immortal words, “Ask not what your country can do for me ask, what can I do for my country!!!”

  7. yes ladies and gentlemen we ase in deep s—t .no matter what happens the consequences are dire.obama needs to be removed from office for threating senior citizens regarding social security.

  8. jonjacobs says Obama is threatbing seniors regarding social security. I think it is the Republicans, who want to make deep changes in social security and medicare. The Republicans have to have a talk!!! with the tea party Republicans, who care about no one but themselves.

  9. I wonder just how many Americans are actually aware that the 14th Amendment contains is pivotal point? The answer might frighten all of us if you ask me! After all, I truthfully feel in strong Constitutional law. It is a part of our heritage that should not be take lightly1

  10. jonjacobs says Obama is threatiening seniors regarding social security. I think it is the Republicans, who want to make deep changes in social security and medicare. The Republicans have to have a talk!!! with the tea party Republicans, who care about no one but themselves.

  11. jonjacobs says Obama is threatening seniors regarding social security. I think it is the Republicans, who want to make deep changes in social security and medicare. The Republicans have to have a talk!!! with the tea party Republicans, who care about no one but themselves.

  12. The Republicans are digging their graves thinking the are hurting the president’s re-
    election chances. The are going to do mostly one thing-they will try to stall the economy to hurt us who get social security. But are anger will be on Republicans come
    2012 when we will get them out and we will allow those who want to serve America to
    replace them.
    Augustine Paul-Houston Texas.

  13. Something has got to give or we will see what happens in the next election. Congress will again be changed in one election term. Are members of congress Americans or traitors to some unknown cause? Doing this to attempt to turn the nation against President Obama is not going to work; in fact it is making the President a sure in for his next term. SORRY guys you blew it! The American people are watching and we will remember.

  14. who refuse to vote the results should be publicasied which way eace on votes so the people ,know what it really going on,,and the republicans who went home and refused to come back because they there SHOULD BE A LAW THAT IF THE BUDGET IS NOT PASSED THEY DO NOT (GET PAID)ENTIL THEIR IS A BUDGET PASSED.AND IF IT IS FRJECTED,AND SENT BACK.THEY STILL DON’T GET PAID UNTIL A BUDGET IS PASSED

  15. Why are we letting this continue,they want to cut social security and medicare for people who have worked their whole lives paying into it and now steal money back from them, this country should be ashamed of it self,it is time to get rid of the Bush tax cuts, If you are e legal then you are a criminal. “no tax hikes on job creators”what jobs in china, Pakistan, Indonesia, India it is low pay or no pay in theses country’s 16 hours a day seven dollars a weak!!! this could be us soon.

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