Geithner Says U.S. Insolvent
Posted: Mon Jan 10, 2011 10:43 pm
http://www.treasury.gov/connect/blog/Pages/letter.aspx
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!!!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.