Geithner Says U.S. Insolvent

[CrosstimbersOkie]

http://www.treasury.gov/connect/blog/Pages/letter.aspx

January 6, 2011

The Honorable Harry Reid
Majority Leader
United States Senate
Washington, DC 20510

Dear Mr. Leader:

I am writing in response to your request for an estimate by the Treasury Department of when the statutory debt limit will be reached, and for a description of the consequences of default by the United States.

Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses and could lead to the loss of millions of American jobs. Even a very short-term or limited default would have catastrophic economic consequences that would last for decades. Failure to increase the limit would be deeply irresponsible. For these reasons, I am requesting that Congress act to increase the limit early this year, well before the threat of default becomes imminent.

This means that the government doesn’t have enough money to pay its obligations unless Congress authorizes an issue of even more debt. This means that the US Government is BROKE!!!

[weak stream]

Crosstimbersokie, this is absolutely true about the US treasury. Too bad that failure will not force these clowns to change direction. For the rest of us, failure means just that whether it is painful or not. All entitlement programs need reform/elimination to the extent that their existence does not threaten the viability of the greater economy. Nobody wants to talk about the fact that if these problems are not resolved now, we will all be without jobs eventually. With the necessary tax increases to float the entitlement system many more businesses shut down.

[CrosstimbersOkie]

Change will come when change is unavoidable. The coming Fourth Turning will be when change is unavoidable...