According to the latest word from president Obama and his Treasury Secretary Tim Geithner, August 2 is the date on which all hell breaks loose because of the lack of an increase in the debt ceiling. The Obama compliant media has run story after story highlighting the terrible things that will occur with this "first ever default by the USA". Now, this is, of course, the fourth date that the administration has put forward as the last possible date before financial Armageddon, but it has not shifted for a few months.
It now appears that the rhetoric from Obama is just not true. Here is a report from Bloomberg News: "The U.S. government can avoid a default for at least a month after the Aug. 2 deadline to lift the debt ceiling set by the Treasury Department, said John Silvia, chief economist at Wells Fargo Securities LLC.
'The Federal Reserve and the Treasury can work together to generate enough cash probably for the next two or three months to avoid any kind of automatic default on the Treasury debt,' Silvia, who is based in Charlotte, North Carolina, said in an interview on Bloomberg Television’s 'In the Loop' with Betty Liu. 'There’s a way of getting around this issue for at least another month or two.'”
So last night we get the speech in which Obama waves his arms and yells "danger Will Robinson" or at least "danger America"; yet, it turns out that it is just more scare tactics. Maybe he should have added in his speech that if we like our medical insurance plan we can still keep it even after Obamacare forces some fifty to sixty million workers off of insurance provided by their employers.
We need an honest president. Unfortunately, we have Obama instead.
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