Debt? No Big Deal.

February 8th, 2010 - Posted by Admin

Anyone who pays even moderate attention to the economy or politics knows that the United States is currently in debt in the worst way. Many have begun to fear that this massive deficit is going to hurt their credit rating, but Secretary of the Treasury Timothy Geithner insists the U.S. will never lose its top-level credit rating.

Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010.“Absolutely not,” Geithner said, when asked in an ABC News interview broadcast yesterday whether a downgrade is a concern. “That will never happen to this country.”

I’d be willing to bet that everyone who is owed money by the United States disagrees. Indeed, if the United States continues to borrow at such an alarming pace, we can only lose our AAA credit rating, nothing else could result. It seems irresponsible for the Secretary to insist that it could “never” happen.