In one of the most asinine comments to come from Washington, Treasury Secretary Timothy Geithner said on Friday that Congress should "just eliminate the debt ceiling" and stop placing legal limits on the amount of money the federal government can borrow.
Geithner appeared on Bloomberg TV and host Al Hunt asked him if he believed that "we ought to just eliminate the debt ceiling."
“Oh, absolutely,” Geithner said.
“You do? Will you propose that?” Hunt asked.
“Well, this is something only Congress can solve,” Geithner said. “Congress put it on itself. We've had 100 years of experience with it, and I think only once--last summer--did people decide to use it to threaten default on the American credit for the first time in history as a tool for political advantage. And that’s not a tenable strategy.”
Hunt then asked: “Is now the time to eliminate it?”
“It would have been time a long time ago to eliminate it,” Geithner said. “The sooner the better.”
This is like someone turning to their spouse and saying "Honey, we should just forget the limits of our credit and our household income and just go borrow and spend like we have billions, even though we only bring home $75,000 a year."
How in the world someone like Tim Geithner made it to the position he is in is beyond me, except for the fact that he knows Barack Obama. I don't see anyone else agreeing with him....yet.
According to reports, Geithner is looking for the exit door anyway, so he won't have to respond to any of this when it all comes crashing down around our ear.
We had better listen to Texas Congressman Ron Paul who says that we should operate as though we are already over the "fiscal cliff," because the reality is, we are.