Tuesday, July 26, 2011

Obama Privately Assures Banks There Will Be No Default

Obama's message to the American people
Barack Obama and his Treasury Secretary, Timothy Geithner, have been telling everyone who will listen that the U.S. will default on its debts if the debt ceiling is not raised, pronto.

"The yellow light," the president said, "is flashing." "By August 2nd, we run out of tools to make sure that all our bills are paid. So that is a hard deadline."

Curiously, though, just a week away from that "hard deadline," the stock market is not panicking, and all is quiet on the Asian trading front, too.

What gives?

It seems that Barack Obama and Timothy Geithner have been assuring banks that what the White House has been telling the rest of us is pure bunk, fit only for the unwashed ears of the lowly American masses, including those fearful American grandmas living on the edge of starvation on tiny little Social Security checks.

From Fox Business (h/t the Strata-Sphere):
Obama's private message to bankers
While officials from the Obama Administration raised their rhetoric over the weekend about the possibility of a debt default if the debt ceiling isn't raised, they privately have been telling top executives at major U.S. banks that such an event won’t happen, FOX Business has learned.

In a series of phone calls, administration officials have told bankers that the administration will not allow a default to happen even if the debt cap isn't raised by the August 2 date.

America, who have you elected?



  1. Oh well that is good to know! Sheesh! One of the pluses of this administration is this open duplicity - tailoring the message to different audiences is nothing new, but failing to assume that both versions will become public is naive as only the very young high achiever can be naive.

  2. @Tina - Whatever this administration has in store for us, we can remain confident that it will inconvenience them not at all.

  3. Obama rhetoric has been unbelievable! He is the king deceiver. He is also the king of double talk or talking out of both sides of his mouth. He irks me so bad.

  4. @Teresa - He'll say anything to get his way. But that does not mean that he is not very, very confused.

  5. "What gives?"
    Dunno. Why don't we ask Mitch McConell, John Boehner and a whole array of Republican legislators, as well as almost every notable economist in the country, who strangely, also agrees with the Obama administration....

    Or, should we take the words of Bachmann, who does not even have one economist in her stable? The same Bachmann who was confused earlier in the year between deficit and debt? The same Bachmann who thinks that the debt ceiling implies future spending, instead of incurred spending authorized by the Congress under a budget approved by herself, and her fellow Republicans.

    Or should we just ignore everything and just listen to what the impartial Fox News, using unnamed/ unidentified resources, reports?