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Geithner: GOP spending cuts mean job losses

By Reuters
February 20, 2011

Treasury Secretary Timothy Geithner addresses a news conference at the end of the G20 finance meeting in Paris February 19, 2011. REUTERS/Benoit Tessier

Republicans’ bill to slash federal spending this year would hurt efforts to spur growth and create jobs, Treasury Secretary Timothy Geithner said on Saturday.

He was asked at a press conference following a Group of 20 meeting for his reaction to House approval of measures that will cut spending by about $61.5 billion from current levels in a move seen as a challenge to the Obama administration to show it is serious about reducing deficits.

The House action is expected to be stopped by Obama or Democrats in the Senate, but it points to a growing possibility of government shutdowns if a compromise is not worked out by March 4, when current funding expires.

“In our judgment, the continuing opposition…in the House would undermine and damage our capacity to create jobs and expand the economy,” Geithner said.

The United States has faced international criticism for running huge budget deficits that it finances through borrowing from abroad. Geithner told the G20 the Obama administration’s budget for 2012 will meet its G20 commitment to halve fiscal deficits by 2013 and stabilize debt-to-GDP ratios by 2016.

Republicans claim the Obama administration needs to show it is serious about cutting spending and are trying to force the issue in Congress.

Geithner said the country was at “the beginning of a very important national debate” on its finances but said the economy must first regain its health so that Americans can start to live within their means.

He suggested the economic recovery now under way from the 2007-2009 financial crisis still needs to be strengthened, after which it will be easier to tackle deficits.

“I am very confident that the Democrats and the Republicans will come together on a program to not just reduce spending but reduce long-term deficits,” he said.

Copyright © 2011 Reuters

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7 Responses to Geithner: GOP spending cuts mean job losses

  1. griff

    February 20, 2011 at 11:14 am

    How so, Tiny Tim? Why would any one believe any thing you say when you and your highly educated bankster buddies couldn’t foresee the crisis looming in the first place?

    You and all your financial wizards have created this mess, and we’re supposed to believe you can lead us out of it with more wizardry, more spending, more gambling with house money, and more monetary inflation?

  2. Carl Nemo

    February 20, 2011 at 1:38 pm

    Evidently Geithner doesn’t understand all the government does is spend/waste money and produce nothing of value for the most part as in the private sector. People need to quit depending on government to somehow restore the old order of the day. The greater majority of Obama’s so-called ‘stimulus bill’ money has been frittered away on questionable projects or simply pitched down fraudulent ratholes. For the government to spend its way out of abject, astronomical, crushing debt is ludicrous.

    If Bernanke~Geithner had any genuinely grounded economic savvy they’d quit printing money, dry up the supply and start raising short rates so private citizens and pension funds could depend on a decent return of their investment capital in government debt instruments, instead they are holding rates at an artificially low level to allow banksters and investment firms access to cheap money via the U.S. government in order create more pseudo-inflationary bubbles in order to make obscene profits in the commodities markets which are no showing inflationary trends. Per Bernanke, inflation is flat to non-existent. The man is an outright, blatant “LIAR” and a running dog for the shadowy bankers that own the Fed…! Yep, they have a plan for the us, and it ain’t good. : |

    So in addition to trashing the economy they’ve even robbed the common people of a decent return on their deposits forcing the foolish to risk their money in the stock market for another current repeat bubble that could fall flat on its face at any time with people taking a massive haircut again to their investment and retirement portfolios. We’ve been hijacked by slick talking banking and investment thieves in high places and seemingly there’s no way to flush them out as long as our elected ‘dear leaders’ surround themselves with some of the worst examples of such from academia and the business sector as their so-called advisers.

    Carl Nemo **==

    • tzx4

      February 20, 2011 at 10:49 pm

      Sir, Carl, your first sentence is highly debatable.

      • Carl Nemo

        February 21, 2011 at 12:05 am

        “Evidently Geithner doesn’t understand all the government does is spend/waste money and produce nothing of value for the most part as in the private sector.” …extract from post

        You are correct. I must have suffered a major brain-fart on that one.

        Should read:

        “Evidently Geithner doesn’t understand all the government does is spend/waste money and produce nothing of value for the most part as opposed to the private sector.”

        Thanks tzx4 for the heads up. : )

        Carl Nemo **==

        • Almandine

          February 21, 2011 at 12:07 am

          I’m thinking he believes the govt produces plenty of value, Carl.

          • Carl Nemo

            February 21, 2011 at 12:25 am

            Good point Al. Since such a thought would never cross my mind, I assumed tzx4 was focusing on what to me was an obvious mistake on my part relative to the private sector vs. government spending, waste and fraud.

            I wudda never thunk otherwise. / : |

            Carl Nemo **==

  3. Almandine

    February 20, 2011 at 1:57 pm

    Ah yes… Keynes’ General Theory of Employment, Interest and Money strikes again. Ain’t that savvy enough for you Carl? Naw… me neither.

    Keep your Congress critters feet to the fire – given enough “flow” their brains may thaw sometime soon.