PrintMay 19, 2011
Grow up, Secretary Geithner
Yesterday, Tuesday, Treasury Secretary Timothy Geithner gave a speech in New York on the debt default crisis, which tried to shift blame for the nation's finances away from the Administration (reported by USA Today:
"If Republicans try to impose that plan on this country as a condition for raising the debt limit, then they will own the responsibility for the first default in our history, with devastating damage to the nation."
Talk about chutzpah!
First, as Treasury Secretary, Geithner is the Administration official most responsible for monitoring the spending as well as the revenue-raising of the federal government. It is his job to see that the country's finances are managed with prudence.
Second, last year, the Dems, including both Houses of Congress which they controlled as well as the presidency, as well as Treasury Secretary Geithner, blew off their responsibility to the country for government spending by not even passing a budget for this year, the first time this has ever happened since the current budget process was implemented (by the Dems) in 1974.
Third, debt service is only about 7% of government spending. What the debt limit really means is that the federal government cannot do about 43% of its spending, which is the amount it is borrowing this year, under the stewardship of Mr. Geithner! It is Mr. Geithner who would choose not to service the debt and thus default on it, not the necessity of the situation, although it would certainly be distressing for the government to have to cut its spending suddenly by 43%.
Fourth, this trainwreck has been on the horizon since the Administration was inaugurated and yet has not modulated its enormous surge in spending. Just this fiscal year, 2011, the year for which the Dems didn't bother to pass a budget last year, spending will increase by an estimated $365 billion. Net debt of the federal government has grown by 88% - almost doubled - since this Administration was inaugurated and Mr. Geithner assumed stewardship for its finances.
Fifth, given Mr. Geithner's clueless and arrogant attitude, do we need any more evidence that unless his and the Administration's feet are held to the fire, we will never see any brake on spending? They are simply not going to do it on their own.
The first step that should be taken is that all salaries in Washington for the leadership of the government, including Congress, should be immediately cut by 50% until the debt crisis is resolved.
