Treasury Secretary Timothy F. Geithner said the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010.
“Absolutely not,” Geithner said, when asked in an ABC News interview broadcast today whether a downgrade is a concern. “That will never happen to this country.”
Geithner said investors around the world turn to U.S. Treasury securities and dollar-denominated assets whenever they are worried about global stability. That reflects “basic confidence” in the U.S. and its ability to bounce back from the global recession, he said.
The U.S. plans to rein in the deficit once the labor market recovers, Geithner said. In the short run, that means focusing on ways to “make sure that this economy is growing again,” he said. The administration says the deficit will shrink over the next four years as more Americans find jobs and the economy accelerates.
He said the Obama administration was "deeply serious" about deficit reduction. Mr. Geithner has endorsed the creation of a bipartisan commission that would be charged with recommending ways to reduce the federal deficit over the long haul.
Timmy disputed remarks by newly elected Sen. Scott Brown (R., Mass.), that the economic stimulus package enacted by Congress last year has failed to create jobs. "I don't think there's any basis for that judgment," Mr. Geithner said. He said the stimulus measures have been "very, very effective," and pointed to improvement in the overall economy.
"We have an economy now that's growing again," he said. "With growth, you're going to see jobs created."
Grandpa feels so much better knowing that Obama is “deeply serious” about deficit reduction as until Geithner’s interview, I was under the impression that the White House was only “shallowly serious” about the deficit. Giddy up America as Geithner states that the stimulus measures have been “very, very effective”.
Happy Days are here again…..
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