House finance committee chairman Paul Ryan grilled Treasury Secretary Tim Geithner on the failure of the proposed budget to work towards solving our long-term debt crisis. Instead of dealing head-on with a $99.4 trillion dollar liability, the Geithner/Obama budget does nothing to avert the looming debt crisis. Geithner’s answer is that his budget stabilizes our current insanely high debt for a few years but does not fix it. Ryan is right, it is all about confidence and trajectory and this budget will not bode well with credit rating agencies or those who might invest in U.S. debt and will result in default.
Presidents and Secretaries of the Treasury have a responsibility to fix problems, this administration and this budget are an epic fail when it concerns future financial liabilities. As Ryan said, “Our Government is making promises to Americans that it has no way of accounting for them!