A Lesson In Economics
Treasury Secretary Timothy Geitner said on Wednesday 3-15-11 that there was no alternative except for congress to raise the debt ceiling so that the government can continue borrowing.
"Congress has to do it. There's no alternative," he said in response to questions at a House of Representatives appropriations subcommittee.
He repeated a warning that it would be have "catastrophic" consequences for the economy if the debt ceiling was not raised and the country defaulted on its debt obligations.
Haven't we heard this once before? And are there really no other alternative, or, is it that they only WANT the one alternative?
And for those who don't believe that the devaluation of the dollar is under way, you simply have to read what Mr. Geitner recently said about the U.S. backing for a world currency. The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geofinance.
Mr Geithner later qualified his remarks, insisting that the dollar would remain the "world's dominant reserve currency ... for a long period of time" but the seeds of doubt have been sown.
So which is it Mr. Geitner?