So, There is No Real Threat of Default, Obama to Banks….
By: Rebecca Figone
The Obama Administration and Mr. Obama, himself, have both been pressing the issue of Debt Default throughout the past couple of weeks of discussions on the Debt Ceiling. Now, with this in mind, let’s look at what Fox Business has for us on this issue:
“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 Treasury Secretary Tim Geithner says the government will run out of money to pay all its bills, including obligations to bond holders. Geithner made the rounds on the Sunday talk shows saying a default is imminent if the debt ceiling isn’t raised, and President Obama issued a similar warning during a Friday press conference after budget negotiations with House Republicans broke down.
While the negotiations to craft a budget remain at an impasse, Republicans and Democrats on Monday began crafting their own plans to cut spending that could lead to an agreement to raise the debt ceiling. It’s unclear if a broad agreement can be reached any time soon, but even if a deal is struck, a complicating issue for lawmakers and the administration is the possibility of a downgrade to the US debt rating, which would cut the triple-A rating on the nation’s debt to a lower level.
Major ratings firms — namely Standard & Poor’s and Moody’s — have said even if the country raises the debt ceiling and doesn’t default, there’s a strong likelihood that the triple-A bond rating will be cut to double-A unless a budget can be crafted that results in $4 trillion in savings, the result of the massive debt load the country has accumulated in recent years. The nation’s outstanding debt is more than $14 trillion.
A senior banking official told FOX Business that administration officials have provided guidance to them that even though a default is off the table, a downgrade “is a real possibility for no other reason than S&P and Moody’s have to cover (themselves) since they’ve been speaking out on the debt cap so much.”
(Please see this link to finish reading this on Fox Business.)
So, from what we can see, the American people are being talked to through the media by “Obama the fear monger,” while “cool hand Obama” is reassuring the banks that there is nothing to fear. The two faced POTUS…is at it again. Let’s make the elderly and those less fortunate worried that the government cannot send their checks; maybe then they will call their Congress persons and press for what I (the all knowing Obama) want…the ability to spend more money. If we scare them, they will fold.
Fear not, my fellow Americans, for even if no agreement is reached, there was never any doubt that checks will still go out….except in the minds of those listening to Obama about it. My best advice….listen less when Obama speaks…and watch what he does instead.