WASHINGTON – When Treasury Secretary Timothy Geithner claimed Social Security payments were threatened by a refusal by Congress to raise the debt limit, he was “flat-out lying,” says the organizer of a campaign to freeze the nation’s borrowing at $14.3 trillion.
In a letter to Sen. Michael Bennet, D-Colo., disclosed over the weekend, Geithner claimed freezing the debt limit would result in less revenue for Social Security, according to the letter.
“If the United States were forced to stop, limit, or delay payment on obligations to which the nation has already committed – such as military salaries, Social Security andMedicare… there would be a massive and abrupt reduction in federal outlays and aggregate demand,” the letter said.
Joseph Farah, the force behind the“No More Red Ink” campaign,an online, grass-roots lobbying effort to persuadeHouseRepublicans to freeze the debt limit, says Geithner’s claim is “provably wrong” and suggests he should resign as treasury secretary if he doesn’t understand why.
“Whether you like Social Security or not, it’s an established fact that it does not operate on borrowedmoney, it does not contribute a dime to the deficit and the fund has a surplus,” said Farah. “This is sheer political mau-mauing by Geithner – the guy who had trouble filling out his own tax return.”