Geithner on the borrow and spend policies

WSJ Reporting, me commenting.

“We had a decade where people said deficits don’t matter. We don’t’ have to pay for things. Tax cuts pay for themselves.’” He said that’s “changing” and “the world’s watching.”

Sure, I blame the Republicans mostly.

Treasury Secretary Timothy Geithner said Wednesday that Congress would soon raise the $14.3 trillion debt ceiling, casting aside criticism from some Republicans lawmakers who have threatened to try and block a looming vote on the matter.

The Republican Communist party always caves in to more spending

U.S. Treasury bills are “absolutely…the risk-free asset around the world, and everybody relies on them.”

This is Tim lying. Most of the bonds purchased are taken up by the Fed.

On the debt ceiling: “I think the markets should understand…the US will meet its obligations, Congress will act as it always had to make sure we meet its obligations.” He said “there’s always a little political theater around this.”

Congress might extract blood from the middle class, Michael Petis researched the problem and concluded the the middle class is screwed. 

“The US growing at about twice the rate of growth of Europe and Japan, and people expect that to continue.”

The headline 3.6 per cent growth rate for 2010 was the highest since pan-German data started in 1991.

Geithner did point out that it will take a long time to climb out of 30 years of budget busting Reagnism, and that includes Tim's policies. However, the state budgets will not last more than a year or two, California likely to go down this year.  Many of Michigan's counties will go into bankruptcy as well as central valley counties right where I am.