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February 17, 2011

Treasury Secretary Geithner Admits Obama's Budget Would Leave "Unsustainable Obligations"

Topics: Political News and commentaries

As Bryan Myrick appropriately quips over at Red County, ""By confirming to the Senate Budget Committee today that Republican assertions about his boss's new budget proposal would create a "very large interest burden and unsustainable obligations over time" he may just have finally earned a well-deserved spot on the next train out of the capital"":

In today's hearing before the Senate Budget Committee, ranking Republican Sen. Jeff Sessions (R-Ala.) asked Geithner about the effect of Pres. Barack Obama's newly proposed budget on the economy, specifically as it relates to the increasing percentage of debt as related to gross domestic product.

Geithner's response was a stark contradiction of the President's statement during Tuesday's press conference that "we will not be adding more to the national debt." Pres. Obama's claim to fiscal responsibility was unanimously supported by his entire budget team... until now.

"You're absolutely right that with the President's plan, even if Congress were to enact it, and even if Congress were to hold to it and reduce those deficits to 3 percent of GDP over the next five years, we would still be left with a very large interest burden and unsustainable obligations over time," Geithner told the Budget Committee.

Here's the jawdropping exchange between Sessions and Geither:

If my take from Geithner's comments is correct, he and Obama know full well that their plan increases the debt, but they lack the political will and the leadership to make the necessary cuts to bring our financial house in order ... and they want the GOP to take the political risk of coming up with the cuts that they themselves are unwilling to take any heat for.

This exchange also proves that Barack Obama purposefully lied when he told the American people that his budget would not add to the debt.

Posted by Richard at February 17, 2011 2:40 PM

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