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.…Treasury would prefer not to have to engage again in any of these extraordinary measures [suspension of the issuance of certain types of government debt and government investment vehicles]. If we are forced to do so again, these measures could delay the date by which the limit is reached by several weeks. Once these steps have been taken, no remaining legal and prudent measures would be available to create additional headroom under the debt limit, and the United States would begin to default on its obligations.
- And here is another version of the above:
Raise debt limit to avoid national catastrophe, Geithner warns Congress
By Lori Montgomery
Washington Post Staff Writer
Thursday, January 6, 2011; 1:28 PM
Treasury Secretary Timothy Geithner warned lawmakers Thursday that the national debt could hit the legal limit on federal borrowing as soon as March 31, and he urged them to act quickly to avoid a government default that would spark "catastrophic economic consequences that would last for decades."
In a letter sent to every member of Congress, Geithner said the national debt now stands at $13.95 trillion - $335 billion short of the current limit on borrowing that Congress set last year. Unless Congress acts to raise the limit, the letter says, the United States will default on its debt, a calamity that would be unprecedented and that could destroy "millions of American jobs," spike interest rates, hurt the dollar and halt federal payments to millions of retirees, veterans and active U.S. troops.
"For these reasons," Geithner wrote, "any default on the legal debt obligations of the United States is unthinkable and must be avoided."
The letter sets the stage for a showdown with congressional Republicans, who are threatening to block a debt limit increase unless it is paired with deep spending cuts and budget reforms that limit future spending. Even some Democrats have said they would be reluctant to raise the limit above $14.3 trillion without a plan for reducing the budget deficits that force the nation to borrow.
"The American people will not stand for such an increase unless it is accompanied by meaningful action by the president and Congress to cut spending and end the job-killing spending binge in Washington," House Speaker John A. Boehner (R-Ohio) said in a statement. "While America cannot default on its debt, we also cannot continue to borrow recklessly, dig ourselves deeper into this hole and mortgage the future of our children and grandchildren. Spending cuts - and reforming a broken budget process - are top priorities for the American people and for the new majority in the House this year, and it is essential that the president and Democrats in Congress work with us in that effort."
Comment: Of course: NON-JEWISH financier, guilty of same as Madoff, ("only" 7 billion stolen and not 50 ), instead of receiving 110 years in jail, is off the hook - "for now". Did you really, honestly, expect a fair outcome?
Not to mention arch-fraudsters JP Morgan, master silver and gold manipulators, who, instead of being stopped in their tracks and indicted for massive fraud, were just invited into the White House, in the form of Chief of Staff. Talking about collusion..... if anybody ever again blames THE JEWS for the massive criminality pervading the United States elite and banking system, I don't know what I'll say, but I assure you it won't be pretty.
A judge has delayed the trial of former Texas billionaire and financier R. Allen Stanford, who is accused of bilking investors out of $7 billion in a Ponzi scheme. U.S. District Judge David Hittner determined that Stanford is not mentally competent to go forward with his case. The financier's trial had been set to begin Jan. 24. The judge agreed on Thursday to delay the start of the trial until Stanford can be treated for medical problems affecting his competency. The judge did not say how long the delay could last. Hittner ruled after a daylong hearing during which three psychiatrists testified that Stanford is not competent because of medical issues including a brain injury he suffered during a jail fight in September 2009.