Geithner: Failure on debt deal not an option

Treasury Secretary Tim Geithner said today on CBS' "Face the Nation" that Washington leaders must agree on a deal to raise the debt ceiling by the end of next week to avoid serious risks to the economy.

"I do believe that this week, and certainly by the end of next week, we have to have agreement on the outlines of a package," Geithner told host Bob Schieffer. "It has to be clear that the leadership have found a way to solve this and they have a path to get votes for something."

Republicans have insisted on creating a deficit and debt reduction plan as a condition of voting to raise the debt ceiling - the amount of money that the U.S. government is technically allowed to borrow.

President Obama has been seeking a deal of both spending cuts and increased revenue that includes $4 trillion in budget savings over a decade, but House Speaker John Boehner said on Saturday that a mid-size package of reforms that does not include any kind of increase in taxes on anyone is the only politically viable solution.

Geithner said today that the president is still pushing for the largest deal possible.

Mr. Obama and his economic team have repeatedly warned of catastrophic consequences for the U.S. and the global economy if Congress does not increase the $14.3 trillion debt ceiling by August 2.

"You can't wait until August 2," Geithner said. "The credit rating agencies of the world have already made it clear in public, the longer we go into July without a path to resolution, the more risk they are going to put a cloud over our credit rating.

"There's no reason why the leadership in Congress should let that happen," he added. Failure to reach an agreement, he warned, "is not an option."

Some conservatives have suggested that the administration's warning about the Aug. 2 deadline amounts to scare tactics, but Geithner said today, "no responsible leader" would take the risk of defaulting on the nation's loans.

"The risk we face starts to happen in July, but then on August 2 we're left running on fumes," he said. "We'd have no capacity to borrow."

[wfw3536]

How can I take this guy seriously when he couldn't even figure out his own taxes for a couple of years. He was also in charge of the New York Fed area when the big banks took our country to the cleaners. And we should believe this guy.

[Raymond Tilly]

When someone says that there is only one answer to a problem and that it is my proposal it shows a person who has a closed mind! Treasury Secretary Tim Geithner and the President suffer from "Not My Idea" syndrome.

[kenny_merriken]

Dear Treasury Secretary Tim Geithner, Please consider researching the following hypothesis: **Abolish abortion of inhabitants of the womb nationally or suffer national bankruptcy** Please research using the Bible, US financial history and abortion history. Sir, research this quesiton: What percent of our national debt was accumulated before January 22, 1973? Proverb 14:34.

[dantom39]

And now this tax cheat thinks we should listen to him I think not.

[tribulation_]

It is all just smoke screens and politics as usual. Wany some facts forget CBS and the rest of the mainstream media cronies. There is no Judgement day if we don't raise the debt cieling. Only if our politicians continue to spend and borrow and raise the deficit without making real effort to fix the deficit. Here are a few facts for you that cbs wont be airing no time soon... http://www.heritage.org/Re?search/Commentary/2011/06/?What-Real-Debt-Ceiling-Jud?gment-Day-Looks-Like

[TimRJr]

Its running on fumes because of a leak and Obauma cyphering gas out of it. Not because of a lack of tax payers putting fuel in it.

[truthinusa]

Geithner never answered the question "will the ss checks be stopped if an agreement is not reached?" His answer should have absolutely not. The checks will continue to be sent out because there is plenty of money to cover these for another 20 years. So, by beating around the bush, he alarmed senior citizens in order to have them blame the GOP. this is a Democratic tactic used which is a form of a lie. Robert Gates said "all politicians lie", but this administration has made a career out of it.

[honest_pols]

CUT OUR POLITICIANS' SALARIES, PERKS, AND OTHER WASTE AND ABUSE BY 70% to 80%...

... and they'll STILL have damned good lives.

If our lawmakers and elected officials were honest and really cared about us, our community, and our country, they would not draw such high salaries and bleed us dry as they do.

The time to cut them down to size has begun. Putting our selfish, arrogant Lawmakers and elected official to manual labor would indeed constitute long-overdue justice.

Make our parasitic leaders perform genuine service for substantially lower salaries, perks, benefits, etc, for our community and country, so they'll finally learn to be productive and helpful to their constituents!

[Logicalchick]

Are you kidding me Bob??? Those of us depending on Social Security already live at poverty level. TAX THE WEALTHY, SMUG SOBs!! Let's get real here! Listen to Tim. The rich just get richer! Is there no common sense left in PUBLIC SERVICE????

[venusvegasvada]

Less than 5% of the population of the US CONTROLS OVER 90% of ALL IT"S ASSETS. Say that 10 times. Class warfare? Are you kidding? There is no middle class anymore. Everyone wants to take it from the remaining 10%? Why? Because those are the people that can't do a damn thing about it. They are the easy targets. They can't fight it. They can't leave and go somewhere else. They are the ones that GET FORCED TO PAY (Like Obamacare). So everyone keeps taking from them and taking from them. What will you say in 5 or 10 more years when the ration is less than 1% of the population owns 99% of ALL ASSETS in the US? Will it still be ok to milk 99% of the population out of their measly 1% to pay for everybody's problems? To fight wars? To do ALL the dirty work?

[Rodeo_Joe]

What ever goes up, must come down.

Empires rise and fall. History 101.

Front row tickets to History now on sale. Stay tuned.