U.S. Treasury Secretary Timothy Geithner during an interview with Bloomberg's Al Hunt last Friday argued in favor of removing limits to the amount of cash the U.S. government can borrow.
Hunt asked Geithner if “we ought to just eliminate the debt ceiling.”
“Oh, absolutely,” Geithner responded.
“You do? Will you propose that?” Hunt asked.
“Well, this is something only Congress can solve,” Geithner noted. “Congress put it on itself. We've had 100 years of experience with it, and I think only once -- last summer -- did people decide to use it to threaten default on the American credit for the first time in history as a tool for political advantage. And that’s not a tenable strategy.”
Hunt then asked: “Is now the time to eliminate it?”
“It would have been time a long time ago to eliminate it,” Geithner said. “The sooner the better.”
Final Thought: Go ahead. Eliminate the all borrowing limits. What could possibly go wrong?
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(H/T: CNS News). Front page photo source Getty Images.