Despite taking to the airwaves every day to scare the American people about the risk of the US going into “default” if the debt ceiling is not raised, Barack Obama has been secretly signaling banking institutions that there is zero risk of default even if that debt ceiling doesn’t budge.
Demagogic Liar in Chief. Par for the course in Obama’s America.
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.