Threats: Geithner Warns That U.S. Could Hit Legal Debt Limit in March and U.S. Could Default

Treasury Secretary Timothy Geithner said today that the United States could hit the legal limit on its ability to borrow as soon as March 31 and "faces serious consequences unless Congress acts by then to raise it".

The statement is a sign of the new times, run out of money? Just increase your dredit limit! Imagine if consumers did that. Well, some do, and we know the consequences.

According to Reuters, Geithner said: "Even a short-term or limited default would have catastrophic economic consequences that would last for decades,"

He added that it was hard to know exactly when the current $14.3 trillion ceiling on the debt limit would be pierced and that the Treasury could engage in extraordinary measures, such as suspending sales of state and local government securities, but preferred not to because it is disruptive.


"The Treasury department now estimates that the debt limit will be reached as early as March 31, 2011, and most likely between that date and May 16, 2011,".

He warned that if the U.S. does not raise the debt limit, it would put the United States into default on its obligations for the first time in its history, would have consequences "potentially much more harmful than the effects of the financial crisis of 2008 and 2009."

Wasn't there a previous secretary making similar comments not long ago, warning, or threats about the time TARP was launched?