A February 7th AP article quotes Treasury Secretary Timothy Geithner as saying the U.S. government ‘will never‘ lose its sterling credit rating despite big budget deficits and a newly increased debt limit that now tops $14 trillion.” The AP report explains:
The cost of borrowing would increase significantly if the ratings service lowered the credit rating, also known as a bond rating, for U.S.
Secretary Geithner reassures ABC’s “This Week” “that will never happen.”
Listening to Geithner use the word “never,” I was reminded of Inigo Montoya from the movie The Princess Bride. Montoya is a Spanish swordsman who calmly listens to his evil leader protest repeated setbacks with exclamations of “that’s inconceivable!”
In an ABC’s This Week interview, Geithner explained that in times of economic troubles, international investors will actually continue to buy U.S. Treasury bonds because the bonds are such a safe investment. Sounds like Geithner’s saying it’s inconceivable that the U.S. credit rating could ever be downgraded. Yet, according to the AP:
Moody’s Investors Service recently issued a warning that the United States government’s credit rating could eventually be in jeopardy if nation’s finances don’t improve.
I can practically hear Timmy screaming “That’s inconceivable! It’ll never happen.”
Mr. Geithner, to quote a certain Spanish swordsman, “You keep using that word. I do not think it means what you think it means.”