Here’s an interesting gambit:
Appearing on This Week, Treasury Secretary Tim Geithner said: “Well, I want to make it perfectly clear that Congress will raise the debt ceiling.” When asked by Christiane Amanpour whether he was sure about that, Geithner responded: “Absolutely. And they recognize it, and they told the president that on Wednesday in the White House. And I sat there with them, and they said, we recognize we have to do this. And we’re not going to play around with it. Because we know — we know that the risk would be catastrophic.”
I’d like to think that Geithner wouldn’t say this publicly if it wasn’t true. However, if it’s true, it will certainly be unwelcome news to people like Rand Paul, who says he won’t vote to raise the debt limit unless a balanced budget amendment is attached (although, he hasn’t committed to a filibuster). It looks like the Obama administration is trying to cut all that kind of posturing off at the knees. They are basically ratting out the Republican leadership. On the other hand, I can’t say any of this exactly makes sense to me. What do you make of it?
Well that can only mean that it’s time for the Whiner Left to make up shit about Obama not “getting out in front” of the issue and “not providing any leadership”.
You crack me up. Here is something to chew on from the “Clap louder” folks:
http://www.thepeoplesview.net/2011/04/photos-and-verses-that-go-together.html
Now tell me that’s not creepy! Anyway, we know the debt ceiling has to be raised. It should be something done with no strings attached. We all know it. Why all this stupid posturing is taking place, I don’t know. And I don’t really care as long as the debt ceiling is passed with no strings attached.
Orange Julius tried to float to Wall Street about letting the Teabaggers be a little crazy and they responded that he better STFU and get the debt ceiling passed.
Geithner is just trying to reiterate that.
Financial markets aren’t going to wait for the US to default before they start making moves to cover their exposure to US debt and the dollar. All that is needed to begin to cause some upheaval is a perception that the Repubs are really going to do this.
Geithner’s comments serve at least two purposes I can see. By basically claiming the Repubs aren’t so foolish to really do this, he continues to build the narrative that it would be an unthinkable destructive move. That is the political preemptive maneuver of which you write.
But it is also a signal to global financial markets that Americans aren’t that stupid and markets don’t need to overreact to the bit of foolishness in the House. Ryan is just engaging in empty braggadocio. I think this is a sign that Geighner is also trying to keep financial markets calm about this.
Maybe more. Have the Koch’s shorted Treasury Bonds? Just making foreigners nervous will cause Treasurys to drop. Then they can cover the short positions, buy Treasurys and profit when the debt ceiling is raised at the last minute and T-Bonds rebound. It’s classic market manipulation. I wouldn’t be surprised if slugs like Lieberman were in on it too.
Somebody’s going to make billions.
I believe that’s exactly what happened.
This country, I swear, man. Only one where a political party would do the unthinkable on this kind of scale.
Even worse. The party isn’t really planning to not raise the debt ceiling. They are using the item to spread fear and anxiousness, to stress the population, make people shake in their boots because the politicians are powerful. That is the only purpose of the exercise. Just like the horribly hypocritical melodrama about the budget. When the US people say it loud and clear: STFU!
It doesn’t even matter if they do it or not, which is really what’s worrying. Just threatening and using it as “leverage” as Cantor said is just as bad, and could effectively have the same effect.
I agree with you 100%.
I want all of the Repubs that toss this around like it’s a little game to pay a price for doing so.
They haven’t even been in charge of the House 6 months and they have made a mess of things.
The word default is dangerous.
Paul Ryan doesn’t have to vote for it. He knows, just like Senator Barack Obama knew, that there will be plenty of votes to pass it without him.