Sunday, February 07, 2010

He is correct...

As I have stated on this blog a few times now, the ability of the US, as a sovereign issuer of currency, to pay is a non-issue. Now, inflation is another matter entirely but II think Geithner is correct here.
Feb. 7 (Bloomberg) -- 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 today whether a downgrade is a concern. “That will never happen to this country.”

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