Geithner pressuring Republicans to raise debt limit

U.S. Treasury Secretary Tim Geithner, is making a fuss today because he is putting pressure on Republican lawmakers to raise the limits on the country's $14 trillion national debt, cautioning that if no action is taken, it would lead to another economic collapse.

Geithner apparently wrote a letter to Senate Majority Leader Harry Reid which stated that the United States might hit the debt ceiling level allowed by March 31st; his suggestion to the newly Republican controlled House of Representatives is to raise the level to avoid pushing the United States into default.

Already the bickering has started. House Speaker John Boehner released a statement that said:
"The American people will not stand for such an increase unless it is accompanied by meaningful action by the president and Congress to cut spending and end the job-killing spending binge in Washington."

Republicans primary argument is to not default, but not continue to borrow recklessly, while Geithner believes if no action is taken, the United States will begin to default on its obligations and would no longer be in a position to make interest payments, which alone total $21 billion a month for this fiscal year. He thinks that this would lead to something much more catastrophic than what was seen in 2008 and 2009.

Nonetheless, foreign lenders including China and Japan have voiced their concerns, especially seeing the financial turmoil in countries like Greece and Ireland. Those countries couldn't meet their obligations and eventually had to be bailed out. Something that Geithner is seeking to avoid again.

Seems like his primary focus is to continue to spend money so that you have revenues taken to support the debt obligations. Either way you look at it, the situation appears grim. You've got one party that wants to spend and borrow, and one party that wants to cut spending across the board.

Yet, isn't it interesting that for the last two years, Secretary Geithner has made little to no comment whatsoever about the impacts of our growing national debt, until just now?