June 30, 2011

CONN CARROLL: Bipartisan Study Confirms: Default In Geithner’s Hands. “The Bipartisan Policy Center released a Debt Ceiling Analysis today showing that even if Congress does not raise the debt ceiling by August 2nd, the federal government would still have enough incoming revenue to pay: all interest on Treasury securities (thus avoiding default), all Social Security obligations, all Medicare and Medicaid obligations, all Defense contractor bills, all Veterans payments, and all active duty troops, and still have almost $7 billion left over for other items. . . . Treasury Secretary Tim Geithner does not have to decide whether or not he wants to default on our debt until August 15th. That is the day that the Treasury is obligated to pay $29 billion in interest on previously issued debt.”

Whatever decision Geithner makes, I feel sure that it will be political.