March 26th 2009
Geithner Stinks It Up Again
The market’s inexplicable surge after Tim Geithner unveiled the first bank bailout plan for the third time notwithstanding, the Treasury Secretary continues to star in what normally would be a career-ending performance. But nothing is normal in Obamaland.
Yesterday, he danced with disaster, speaking crazy about the dollar:
As if the dollar didn’t have enough problems, Timothy Geithner took China’s bait yesterday and said he was “quite open” to its suggestion this week to displace the greenback with an “international reserve currency.” The dollar promptly fell and stocks followed, before the Treasury Secretary re-emerged to say “the dollar remains the world’s dominant reserve currency. I think that’s likely to continue for a long time.” (WSJ)
Huh? A Treasury Sec of the UNITED STATES OF AMERICA saying he’s open to knocking the dollar off its long-established pedestal without so much as a whine and a wimper? Is he pursuing the economic collapse of our nation or something? Clearly, the Obamarxists are in way over their head – no one knows the message, everyone’s flaiing and contradicting each other, as Geithner flip-flopped just a few hours after the president had said (wishfully) that there’s no threat to the dollar:
The markets appear baffled by the confused statements emanating from Washington. (Telegraph UK)
Today, the media is starting to grasp the implications of Bank Bailout III, the sequel no one on Main Street wants to see. The verdict: Cheer the stock market’s recent rise if you wish – but realize it’s your disappearing money that’s fueling the surge:
The Geithner-Summers plan, officially called the public/private investment programme, is a thinly veiled attempt to transfer up to hundreds of billions of dollars of US taxpayer funds to the commercial banks, by buying toxic assets from the banks at far above their market value. It is dressed up as a market transaction but that is a fig-leaf, since the government will put in 90 per cent or more of the funds and the “price discovery” process is not genuine. It is no surprise that stock market capitalisation of the banks has risen about 50 per cent from the lows of two weeks ago. Taxpayers are the losers, even as they stand on the sidelines cheering the rise of the stock market. It is their money fuelling the rally, yet the banks are the beneficiaries. (Financial Times)
I’m sure similar critiques appear in Germany, France, Tokyo and Shanghai this morning. If they’re all miffed at our Treas Sec and the man who hired him, how much faith will they show at our next sale of Treasuries?
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March 27th, 2009 at 2:14 am
America will need a new currency before Geithner and the politicians are finished expanding the debt and destroying the dollar but the solution is a gold backed currency free of government manipulation. The Campaign to Cancel the Washington National Debt by 12/21/2012 through constitutional amendment begins. See our facebook page at http://www.facebook.com/group.php?gid=67594690498&ref=ts
We are also planning to have a booth at FreedomFest 2009, the world’s largest gathering of free minds! July 9–11 http://www.freedomfest.com in Las Vegas. Ron