Tim Geithner seems an odd character to serve as Secretary of the Treasury. His television communicating style sometimes seems clipped and disjointed, and his angular face and darting eyes give him the appearance of a mischievous leprechaun.
But Geithner wasn't picked to head Treasury for his idiosyncratic personal charm. He was chosen for his experience with national and international finance.
Among Geithner's earlier career achievements were stints at the International Monetary Fund and the New York Federal Reserve Bank.
Let's graciously stipulate that Geithner is smarter than we are, and a tad more political. Interviewed this morning by Steve Liesman on CNBC's 'Squawk Box," the treasury secretary tried to put a positive spin on the great national debate over raising the debt ceiling.
"People are moving closer together," said Geithner, referring to Republican and Democratic negotiators on the budget deal.
"That's not the regular interpretation," Liesman challenged.
Geithner said there was a strong likelihood of a budget deal. He pointed to a plan advanced by Senator Mitch McConnell which would allow President Obama to raise the debt limit incrementally, with Congress voting each time.
Geithner insisted the Aug. 2 deadline date for getting something done was inviolable. It's Geithner's job to worry, and he seemed worried that international stock markets could tumble on any careless or negative comments he might make.
One inevitable question was whether Treasury had a backup "triage" plan if an agreement was not reached before the deadline date of August 2. Would U.S. creditors get paid first?
Geithner saw no percentage in discussing it and rebuffed Liesman's repeated questions about a "Plan B."
"Our plan has been, and it's the only plan available, is for Congress to act," said Geithner, tersely.
Conservative Republicans like Herman Cain accuse the administration of "scare tactics" regarding the Aug. 2 end of the financial world scenario the administration is trumpeting. But that depends on whether one applies short or long-term arithmetic to the debt problem.
In August, the government could use $172.4 billion in revenue to pay off $29 billion in interest payments, but that ignores the amount of other bills piling up in the federal household.
The suggestion of a temporary "fix" seemed to anger Geithner, who pointed out the 80 million checks the government had to write each month to keep the government running smoothly. Too, said Geithner, the Treasury would have to refinance $500 billion in maturing debt, at potentially higher interest rates.
The biggest worry for the White House was neither about "civil discourse" nor the price of arugula at Whole Foods. It was that world investment markets would lose confidence in the American economy, and set stock markets tumbling.
Standard and Poor's rating agency last week set a cautionary "credit watch" on the guarantors of the U.S. credit system. A U.S. default could devastate the profits on debt insurers and investment clearing houses.
Geithner says that default would impact everyone, but it's questionable how much blue collar America would notice considering the 9.2 percent unemployment rate and the housing collapse.
The great number of Americans largely without investments, without 401(k) or invested private pension plans, possessing only bank savings accounts, might actually benefit from higher interest rates.
Geithner has broad concerns.
"If the U.S.A were to default, it would be catastrophic for the financial system, for the average American. It would be a substantial unfair tax on all Americans and it would -- bring the world economy to the edge of recession again."
Anthony Ventre is a freelance writer who has written for weekly and daily newspapers and several online publications. He is a frequent Yahoo contributor, concentrating in news and financial writing.
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