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Geithner Says Congress Can't Evade 'Responsibility' on Debt Limit

Adam Gault/Thinkstock(NEW YORK) -- In a wide-ranging speech about debt and deficits at the Harvard Club in New York, Treasury Secretary Tim Geithner said Congress should “meet its responsibility” to increase the nation’s debt limit before the Aug. 2 deadline he has set.
“It is simply not an option for Congress to evade the basic responsibility to protect America’s creditworthiness,” said Geithner.
“The debt limit, of course, relates only to commitments we have made in the past. Rather than debating whether we should pay our past bills and whether default would in fact be so bad; rather than designing schemes to allow us to continue to make interest payments by breaking our commitments to seniors and veterans; we should be working together to narrow our differences on how to solve the causes of future deficits.”
The balance of the Treasury Secretary’s speech was spent defining the Obama administration’s position on cutting annual deficit spending and reducing the national debt over the long-term. Of note here, Geithner highlighted the administration’s proposal for a “debt cap” which would lock in deficit reduction targets which, if not met, would lead to automatic spending cuts and tax increases.

Copyright 2011 ABC News Radio

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