Another reason to buy gold. Geithner. Read this.
How many more trillions does this Jackass and obama think they can print off?
Geithner: ‘Catastrophic Consequences’ If Debt Limit Not Raised
Saturday, May 14th, 2011 at 11:05 pm UTC
Posted 17 hours ago
The U.S. treasury secretary is warning of “catastrophic consequences” if lawmakers fail to raise the limit on the amount of money the United States can borrow.
Timothy Geithner said in a letter dated Friday that if Congress does not raise the debt ceiling beyond its current level of $14.3 trillion, it will “force the United States to default” on payments to military personnel, businesses, and investors.
He said defaulting would increase the cost of borrowing money — meaning a larger proportion of future payments would go towards interest rather than paying down the debt itself. And he said the higher interest rates would also be passed on to individuals, businesses, and local governments.
Geithner wrote that this would cause “far-reaching damage” to the economy, reduce growth, increase unemployment, and could plunge the economy into another recession.