Sunday, February 07, 2010

Never Say Never

I would be willing to make a bet that Geithner's words will come back to haunt him, and sooner rather than later.

1 comment:

The North Coast said...

It's unbelievable that Geithner has any credibility left at all.

Geithner would, I'm sure, also prefer to avoid any comparisons between this country's current fiscal condition, and those of Weimar Germany and Argentina when their respective financial systems and economies totally collapsed.

We have, and have had for a number of years now, the most oversized load of public and private debt relative to our GDP of any country ever to exist. Our ability to borrow abroad has already been substantially impaired, and we are now being watched very closely for signs of further deterioration.

To increase borrowing further while tax revenues continue to deteriorate puts this country at extreme risk of default. If that happens, our consumption of fossil fuels and just about everything else, will drop pretty drastically, for a fact, as the oil shipments sit in the harbor and the grocery store shelves go empty.