Tags: Bachmann Geithner Using ‘Scare Tactics’ Over Debt

Bachmann: Geithner Using ‘Scare Tactics’ Over Debt

Thursday, 26 May 2011 01:33 PM

Rep. Michele Bachmann tells Newsmax that Treasury Secretary Tim Geithner has resorted to “scare tactics” in warning of dire consequences if Congress fails to raise the debt ceiling.

The federal government technically has hit its $1.43 trillion statutory spending limit, forcing Geithner to scramble to find funds in the short-term.

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Michele Bachmann
(Getty Images photo)
The government can easily continue to borrow, but the spending limit is a law enacted by Congress, so it must be raised or spending must stop — including interest payments on Treasury debt.

Geithner first began to warn in January of “catastrophic” consequences for not raising the limit, namely a U.S. debt default. While some have taken issue with the definition of default, the implications of such a move could be rapidly rising U.S. interest rates. Debt buyers, many of them foreigners, might demand higher rates to compensate for the risk.

Click Here to Read the Full Story and Watch Video Now: Bachmann Exclusive: Obama Robbing Nation of 'Golden Future'

After resetting the absolute deadline several times, Geithner now says the government will run out of cash to pay its bills on Aug. 2. An initial vote on raising the debt ceiling is scheduled for next week.

“The secretary unfortunately resorted not only to scare tactics, in my opinion it was outright blatant lies when he said that we would see the collapse of various things if we didn’t allow the government to continue to borrow money and spend money,” Bachmann, a Minnesota Republican, tells Newsmax in an exclusive interview. Her exclusive interview with Newsmax.TV is part of an upcoming profile of Bachmann and her expected candidacy that will be featured in the July edition of Newsmax magazine.

“We’re at the point where we actually need an intervention, and the American people are saying we want to intervene. Stop spending money we don’t have. It would be immoral for us to consume what generations yet unborn have yet to earn.”

Bachmann also says she supports the deficit reduction plan proposed by Rep. Paul Ryan, R-Wis., but with several qualifications.

She’s concerned the plan doesn’t do enough to foment the medical breakthroughs that she considers the ultimate, long-range solution to spiraling health care costs. Also, she’s worried about how the plan’s impact is being communicated to voters. She believes backers of the plan should stress that changes in the Medicare program would affect only those who are currently 55 years old or younger.

“We don’t want anyone who is 78 years of age and depending on Medicare to think that their Medicare is going to be pulled out from under them. It won’t be.”

Click Here to Read the Full Story and Watch Video Now: Bachmann Exclusive: Obama Robbing Nation of 'Golden Future'

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Rep. Michele Bachmann tells Newsmax that Treasury Secretary Tim Geithner has resorted to scare tactics in warning of dire consequences if Congress fails to raise the debt ceiling. The federal government technically has hit its $1.43 trillion statutory spending limit,...
Bachmann Geithner Using ‘Scare Tactics’ Over Debt
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