Geithner Asks Congress for Higher U.S. Debt Limit

August 26th, 2009

Via: Reuters:

U.S. Treasury Secretary Timothy Geithner formally requested that Congress raise the $12.1 trillion statutory debt limit on Friday, saying that it could be breached as early as mid-October.

“It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations,” Geithner said in a letter to Senate Majority Leader Harry Reid that was obtained by Reuters.

A Treasury spokeswoman declined to comment on the letter.

Treasury officials earlier this week said that the debt limit, last raised in February when the $787 billion economic stimulus legislation was passed, would be hit sometime in the October-December quarter. Geithner’s letter said the breach could be two weeks into that period, just as the 2010 fiscal year is getting underway.

The latest request comes as the Treasury is ramping up borrowing to unprecedented levels to fund stimulus and financial bailout programs and cope with a deep recession that has devastated tax revenues.

It is expected to issue net new debt of as much as $2 trillion in the 2009 fiscal year ended Sept. 30 and up to $1.6 trillion in the 2010 fiscal year, according to bond dealer forecasts.

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2 Responses to “Geithner Asks Congress for Higher U.S. Debt Limit”

  1. Eileen says:

    Oh boy. Can someone help me here?
    In my mind Geithner- if he were to be a real executive in control of the US Treasury – would have done just the opposite of what he has just done.
    I would have said STOP. Get a grip on reality. Do not let us increase our debt limit because we do not know how to manage the obligations we are already committed to on our books now.

    I think also that if Geithner was being a REAL PERSON rather than A TOOL he’d say CUT US OFF because we HAVE NO CLUE as to whether our spending plans will ever COME TO FRUITION.

    Yeah, well sure, that’ll never happen. Guess I’m sitting here, watching this country go down the drain from the Treasury Secretary’s from Eisenhower/Nixon to Obama.

    If these guys are in charge of the kitchen, has anyone ever taught them to recognize when the meat is already well done?
    I think its time for a financial fraud tribunal to be held in the US.
    Anyone know where Rubin and Paulsen are these days? Verily, Geithner isn’t exactly still wet around the ears and is new to his office, but my gawd. I think its pretty clear where his interests lie, and it does not appear to be an interest in the continuation of the US as a solvent actor on the world stage.

    I’m left wondering: does Geithner have a clue as to what a bank failure means? Let alone MULTIPLE SYSTEMIC FAILURES? Duh!

    Seems to me Geithner needs a brain enema. Or twenty more years of experience working in the trenches. Maybe some experience in the basement of the Federal Reserve sifting through file boxes to answer a request from the people who think they are Masters of the Universe.

    For me, Geither has no cred. Instead he seems to be a moronic robot acting just like his puppet string owners want him to.

    Poor Timothy has my ire. If I met him on the street I’d say eff you, you ignoramous moron.

  2. lagavulin says:

    Several months ago there was a great clip of Jimmy Rogers from some news show, and he essentially told the truth…that nobody who knows anything actually listens to these idiots, so why does the media continue to treat them with any credibility whatsoever?

    He actually called them idiots, and said we’re stupid to believe anything they say or give them any credibility whatsoever.

    I don’t know how much flak he must have taken for that, but he was certainly giving his honest opinion. And echoing the thoughts of the old-school pre-CNBC gurus who don’t listen to anything being reported by the major media anymore.

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