WASHINGTON (Reuters) - Treasury Secretary Timothy Geithner warned on Wednesday that "prioritizing" government payments to avoid a debt default would spur deep cuts in other disbursements and still cause investors to shun Treasury securities.
In a letter to senior Republican senators, Geithner said their proposal to keep the debt limit at the current level while ensuring payment of interest on the federal debt is unworkable.
"Ultimately, the notion of 'prioritizing' payments is futile because the debt limit must be increased regardless of which spending path is adopted," Geithner wrote. "There is no credible budget plan under which a debt limit increase can be avoided."
(Reporting by David Lawder; Editing by James Dalgleish)
Oregon Town Blasts Obama's "Inappropriate," "Disrespectful" Visit After College Shooting - Bearing Arms - Barack Obama, Mass shootings, Umpqua Community College
Watch Mika Brzezinski explain how AR 15s can “blow up animals”
SHAMEFUL: Hillary Clinton's latest 'faith' claim may be her most infuriating one yet; What about THIS? - twitchy.com
The New Norm?
Crony Capitalism Driving Nevada Energy Controversy | Human Events
The Russian infringement of Turkish airspace is bigger than it seems | RedState
Thomas Sowell - Charlatans and Sheep