One must wonder about the intelligence and stewardship of Timmy and the other attendees of this meeting. When Geithner declares: “It would be indelible, incurable. It would last for generations,” he is stating the inevitable. Raising the debt limit does nothing to change the US condition other than temporarily postpone his predicted outcome.
The two italicized sentences of Geithner’s reveal what the American people need to know. No one will buy US Treasuries other than the Federal Reserve. Raising the debt limit only puts the government more hopelessly in debt, ensuring that Treasuries will be even more difficult to sell. Without intending it, Geithner admits that Bernanke will be printing money until the electricity is shut off or until hyperinflation shuts everything economic down. In either case, we reach his “indelible, incurable” situation which will “last for generations.”
Now, don’t you feel better knowing Woodward’s inside account of what is going on. These geniuses were rearranging the deck chairs on the Titanic instead of addressing the iceberg that will sink the country. At least Woodward seemed to enjoy the political intrigue.