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Tim Geithner: No Plans to Address the Debt Crisis

Yesterday on Fox and Friends, Governor Palin observed that Obama is not fit to hold the office of the presidency.  Today, Obama’s Treasury Secretary, Tim Geithner, proved Governor Palin correct.  Via Phillip Klein:

President Obama spent much of last year pretending that he had a plan to tackle the nation’s long-term debt crisis. He never released an actual plan, but he gave a bunch of speeches pretending that he had. And Obama pushed the idea that he was privately ready to cut a "grand bargain" on the debt were he not thwarted by intransigent Republicans. This was a narrative dutifully reported by the media, despite the lack of any formal plan. Now, the pretending is over.

On Monday, Obama unveiled a budget that added to the debt while using a series of budget gimmicks to claim deficit reduction. And today, Treasury Secretary Tim Geithner conceded that the administration didn’t even attempt to do anything about the nation’s long-term debt problem.

Earlier today, he told the Senate Budget Committee that long-term spending would be "unsustainable" even if Obama’s budget was fully adopted. Later, in a separate hearing, he explained to House Budget Committee chairman Rep. Paul Ryan, R-Wis., that the only intention of the Obama budget was to address deficits in the next decade, not to put the nation on a sustainable fiscal path. He also trashed Ryan’s budget, which does actually solve the problem, for putting too much of a burden on seniors to pay for health care.

“We’re not coming before you to say we have a definitive solution to that long-term problem," Geithner told Ryan. "What we do know is we don’t like yours.”

Unbelievable.  Keep in mind that Turbo Tax Tim is the Secretary of the Treasury.  It’s his job to safeguard America’s finances, and he’s openly admitting, even if we accept his wildly optimistic budgetary predictions, that not only does the Obama Administration not have a plan to deal with the debt (now close to an unbelievable 100% of GDP), but they don’t even see the need to develop a plan to deal with the debt.  It’s simply not on their radar as they’d much rather play the class warfare and Mediscare games that got us into this mess in the first place.  I guess they hope nobody notices.

Investors will.

As Klein notes, if investors lose confidence in America’s finances, a real debt crisis will occur. Once that happens, Obama’s budget projections, already based on a laughably rosy scenario, will be thrown out the window and the crisis will be unavoidable. The only solution will be Greek style austerity measures that will produce rioting in the streets among that increasing number of Americans whose livelihoods are dependent on the government dole.  And those of us who have saved our entire lives will be little better off as the government will look to us to bail them out. And what they allow us to keep will be worthless as the government will inevitably be forced to dramatically inflate the currency, seriously eroding the value of the life savings of those responsible individuals who took it upon themselves to save for their own retirements.

I would call this revelation by Geithner terrifying, but that somehow doesn’t seem strong enough.  Obama is not only presiding over the economic ruin of the country, but doing all he can to ensure it.  If you have a strong stomach, watch the video below.  Pay special attention to the charts Paul Ryan displays.  This is the strongest evidence to date that Obama and his entire administration are unfit to hold office, as Governor Palin noted. What were Americans thinking in 2008 when they elected this guy?

Read Klein’s entire piece here.

(h/t John H)


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