1 As predicted..... on Tue Aug 11, 2009 11:14 am
This morning, Geithner demands that Congress allows the Treas. Dept. to borrow more money. In a letter to Congress, he writes that we need to raise our debt limit above 12.1 trillion dollars so that "investors here and around the world can remain confident that the United States will always meet it's obligations". Earlier this year, the Democratic Congress set a national debt limit of 12.1 trillion dollars. Our national debt is at 11.7 trillion now, and we are adding $200 billion every month. In two months,we hit the wall. Geithner, arguing that the USA is too big an economy to fail,says we need the limit raised NOW. What does this mean? In my view,it means that the scenario I described earlier is obtaining. The USA has two choices: Stop the huge appropriating and watch the proposed health care monstrosity wither on the vine,or....borrow more,more,more. In my opiniom, Congress will raise the debt limit. We must,now. If we don't,we will be in the same situation as a mortgage holder who can't make his payments. We will be in default and unable to back the trillions in Fed Sec notes issued so far. We would be,literally, bankrupt. So what will happen when the Democrats raise the limit? The answer is simple. The same thing that would happen if that homeowner continued to borrow to make his payments until his total payments are more than he earns. He will default anyway and be in debt for the rest of his life,as we will be. Thanks, Nancy,Harry,Barney, and OBAMA. BTW, one of the things the protesters at the meetings are shouting is "You are out of control!" (meaning the Democratic Congress) SSC and I said this months ago. The protesters are right and we were right.
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