Tag Archives: geithner

Guest Post – Can Treasury Shuffle Money To Keep The USA From Default?

27 Jul

Submitted by reader ‘John’ .

The national debt in the US has been subject to the legal maximum and has topped the $14 trillion mark for the first time. As the debt ceiling has become a focal point of the debate of most financial experts, the Congressional leaders may try to raise the cap so as to avoid the US government to increase its defaults. The Treasury Department estimates that borrowing must be brought under control and the number of bank failures to repay debt that has been borrowed must also be taken care of.

The US Treasury Secretary Tim Geithner has already reported to the Congress that he will need to suspend all the investments in the federal retirement funds until the 2nd of August. If the debt ceiling is not raised by the stipulated time, the US may have to stop borrowing further money as this may alleviate the debt problems within the nation. Once the debt limit is increased, the funds will be made whole and the Federal retirees and the employees will remain unaffected by this decision.

The Treasury Secretary has urged Congress about raising the debt limit so that there is no ill impact on the markets. This will protect the full faith and the credit of the United States and help them avoid the catastrophic and financial consequences. Meanwhile, the Congress is not showing any signs of increasing the debt ceiling. There are many Republicans and some Democrats who believe that they will not take any step towards raising the debt ceiling unless Congress and the President Obama agree to significant spending cuts to curtail the growth of debt.

But Treasury Secretary Geithner feels that if the debt ceiling is not raised by August 2nd, the US government will fail to pay off its bills in full. This means that slashing off the spending limit will not be enough to get some positive results within the economy. The US Treasury has to make 80 million payments in a particular month and for this it has to borrow money ruthlessly. All this will come to a halt if the debt ceiling is not raised at the right time.

Whenever the debt limit is supposed to be raised, the lawmakers are forced to take stock of the country’s fiscal direction, which is a good thing. However, all the necessary steps must be taken in order to make sure that the US is not set to default on its loans.

Disclaimer: The views expressed in the above article are the author’s own. They should not be interpreted as reflecting any views held by Senator Barnaby Joyce, The Nationals, or by the barnabyisright.com blog author.

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Our New Treasury Secretary Is America’s Mini-Me

5 Jun

America’s Treasury Secretary, Tim Geithner – the former IMF bankster who Paul Keating rightly called a “gigantic fool” – now  has his very own Mini-me right here in Australia.

New Treasury Secretary Martin Parkinson. Former student of money-printing madman, US Federal Reserve Governor “Helicopter Ben” Bernanke.

What do Tim and Martin share in common?

An insistence on raising our respective nations’ debt ceilings.

The only difference between these two #JAFA lunatics, and the public (taxpayer) debt levels over which they preside … is one of scale.

Consider.

Recently we have seen the USA run into its $14.3 Trillion debt ceiling. And giga-fool Geithner has been loudly proclaiming the dire consequences if the US Congress refuses to raise it even higher.  In another ominous warning of where Australia too is heading, Geithner has started stealing federal employees pensions to keep the government running until August 2, when America will default on its current massive debt unless the #JAFA’s in their Treasury department can get “permission” to borrow-and-spend the American people even deeper into oblivion.

And in Australia?

On Wednesday in Senate Estimates, our Mini-me Martin Parkinson was challenged by Senator Barnaby Joyce over this utterly incompetent and reckless Labor/Green government’s decision, just before the Budget, to sneak in new legislation to raise our debt ceiling too.  By $50 Billion – a 25% increase. To a new all-time record debt level of $250 Billion.

Just like America. The only difference is the scale.

And what did Mini-me Parkinson have to say?

Nationals senator Barnaby Joyce wanted to know what would happen if the government was prevented from lifting its gross debt ceiling by a further $50 billion to $250 billion, as proposed in the budget.

“I couldn’t imagine that parliament would be so foolish,” Parkinson replied.

It would have “serious ramifications” for the operation of government.

It gets worse.

According to Mini-me Parkinson, he is simply not concerned about our ever-rising, all-time record high national debt. And, it seems he would only begin to view our national finances from a position of “concern”, if our national debt level was the highest in the world:

During a budget estimates hearing, Nationals Senate Leader Barnaby Joyce asked the Treasury secretary if increasing government debt concerns him.

But Dr Martin Parkinson says it does not.

“If you were to say to me that Australia had the highest level of public debt in the world… if you were to say that to me, then I would start from a position of much greater concern,” he said.

Brilliant.

Our nation is held hostage to the “genius” of yet another ivory-towered, disconnected-from-reality,”theory”-obsessed, white-collared, smarmy idiot.

A #JAFA.

This former head of the Department of Climate Change, no less, is now the new “Sir Frank Gordon” responsible for advising the Goose, Wayne Swan, about how to (mis)use the billions of dollars that this Government is borrowing every week from China, et al:

Given the abundantly clear evidence that America is rapidly swirling its way down the financial toilet bowl, the last thing we need is a Mini-me of Timmy, and a former student of money-printing madman, “Helicopter Ben”.

Another useless #JAFA – just like Senator Joyce’s previous nemesis at the Treasury department, the green cargo-cult member, Ken Henry – one whose towering, commonsenseless intellect insists that the government be permitted to keep borrowing-and-spending our nation into oblivion too.

Martin Mini-me Parkinson.

Remember the name.

So you know who (else) to blame, when we all get flushed down the green-tinted economic toilet bowl.

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