Economics is boring but these guys will determine whether you can feed yourself tomorrow or if you have a roof over your family’s head!
An Apolitical Look at Corruption (with a sprinkling of Fiscal Incompetence)
The current Secretary of the Treasury, Tim Geithner, and the Federal Reserve Chainman, Ben Bernanke, are both products of the Federal Reserve “system” with Tim serving as president of the Federal Reserve Bank of New York and Ben serving as on the Federal Reserve Board of Governors. Bernanke was basically an academic until 2002 when he was appointed to the Fed Board. In short, no practical business experience. Geithner, other than a stint with Henry Kissinger, is basically a career public sector animal. In short, no practical business experience. So, the two top dogs in the entire known world, are calling all of the shots for a “free market, capitalist” system, and neither of them has any business experience. May the good Lord guide and keep us!
Ok, so they don;t have any business experience. They are not any worse than old Hank Paulsen, who was the Chairman/CEO of Goldman Sachs before being Treasury Secretary for Bush II. Ever wonder why old Hank (Paulsen) told old GW that GW need to bail out Wall Street (Goldman Sachs) with TARP and ended up giving Goldman a lion’s share of the spoils of the other firms failures! Gee, I wonder if his buddies at Goldman Sachs had anything to do with it? Timmy Geithner is in the middle of the Wall Street crown even though he never worked there. As the President of the Fed NY, he reported to its board of directors. Timmy’s bosses included: JP Morgan Chase Chief Jamie Dimon; Stephen Friedman, a former Goldman Sachs chairman; and Richard Fuld of Lehman Brothers. Geithner reported to the same group who ended up receiving bailouts and other preferential treatment from the Treasury. At least everyone knew what Al Capone was!
So far we have been discussing Ben Bernanke, appointed by Bush II and Re-upped by Obama; Tim Geithner who rose up the ranks of the Fed during Bush II’s reign and others; Hank Paulsen, appointed by Bush II. The first question in my mind is what the hell happened to Bush II and why would he have picked these three?
Bush had appointed as his Secretary of Treasury John Snow, Chairman/CEO of CSX (transportation company) and Paul O’Neil, Chairman/CEO of Alcoa. Both tried and true business executives who understood business/capitalism. Somewhere along the line GW got sucked in by Wall Street and appointed Hank Paulsen, Chairman/CEO of Goldman Sachs, then Ben Bernanke as the Fed Chairman. What happened to the private sector? Then, what happened to the COUNTRY! (note: I don’t bother to mention Alan Greenspan. he lost it a long time ago and loved the Bush Tax cuts before he hated them! Sounds like a Senator I know)
How about a couple of quotes from some of these wizards of economic wonders:
- Bernanke Regarding the Printing of Money: “The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost.”
- As long as Bernanke thinks we are in a deflation cycle, he can print as much money as HE THINKS necessary with impunity. Your dollars are automatically worth less when he does.
- Bernanke On Tax Policy: When questioned about taxation policy, said that “..it was none of his business, his exclusive remit being monetary policy, and said that fiscal policy and wider society related issues were what politicians were for and got elected for.”
- If he were a business person, he would realize that he is managing half of the economy and the administration the other. He should care and coordinate tax and fed policy closely and IT HIS BUSINESS. It is our MONEY.
- Bernanke on Distributing “Printed” Wealth: The U.S. government is not going to print money and distribute it willy-nilly …”although there are policies that approximate this behaviour.”
- Oh Really! ‘Howabout’ TARP, the Stimulus I, II, and III, Bailout of Banks, Wall Street, AIG, GM etc. etc. etc.
- Bernanke on Generating Inflation Even at Zero Interest Rates: “a central bank should always be able to generate inflation, even when the short-term nominal interest rate is zero …[this] more direct method, which I personally prefer, would be for the Fed to announce ceilings for yields on all longer-maturity Treasury Debt.”
- So now we can not only give money to banks at zero interest so they can charge us 24% on a credit card, but you can manipulate the yield on T-Bills to perpetuate the fraud?
- Bernanke on Manipulated the Equity Markets: “Although the Federal Reserve can’t legally buy these securities (thereby determining the yields); it can, however, simulate the necessary authority by lending dollars to banks at a fixed term of 0 per cent, taking back from the banks corporate bonds as collateral”.
- Stealing is Stealing. He is GIVING our money to BANKS so the FED can control the Banks they gave the money to, but it is illegal for the FED to give Money to Banks! REALLY, I think these guys go to “WORD SMITH” school so they can say something elegantly enough that we enjoy getting screwed! If I lent you $100 at zero interest the IRS would make us “impute” the interest and pay taxes on it. What a crock!
- Bernanke on Manipulating Global Currency: “The Fed has the authority to buy foreign government debt … [t]his class of assets offers huge scope for Fed operations because the quantity of foreign assets eligible for purchase by the Fed is several times the stock of U.S. government debt”.
- Scary enough he has carte blanche to screw up our monetary policy but he has the authority to crank up the printing presses and buy EUROS, Gold or whatever he wants to tweak!
The REAL SCARY Part is that Bernanke is Not Accountable to a single Elected official nor does the FED have to Report anything to you the Taxpayer.
Talk about Tyranny…
- Geithner’s Most Memorable: “Financial crises require governments.” (that’s it?)
- No dummy, Government CREATE Crises! PERIOD. Then you (government) ride in on your white horses to solve the problem YOU CREATED!!!
- Geithner’s Course Correction to his first Quote: “The government can help, but we need to make this transition now to a recovery led by private investment, private.”
- So we are looking for a Government Private solution. You just got Obama’s transparency thing backward. You meant to say a PRIVATE GOVERNMENT thing that no one finds out about. Like the Deals with AIG, Bank of American, etc…
- Geithner’s Follow-up to his Most Memorable: “Monetary policy itself cannot sensibly be directed at reducing imbalances.” (Bet he is fun at cocktail parties)
- So… You leave a lot of great quotes just dangling in the wind.
- Geithner’s Attempt at Aristotle: “The choice is between which mistake is easier to correct: underdoing it or overdoing it.”
- I was looking to see where I could find the Obama Doctrine of Good Governance!
- Geithner’s Psychic Abilities: “The substantial uncertainty about the path of asset price movements going forward necessarily reduces the case for altering policy in advance of the move”
- Great. Now Follow what you just said. You cannot predict the outcome of any action you might take so go sit in your closet and quit screwing around with our economy. Take Ben with you.
- Geithner on Not Defining a Definition: “This crisis is not simply a more severe version of the usual business cycle recession, the typical downturn in which economies ultimately adjust and stabilize”
- Ok Timmy, then what is it? It is kind of hard to solve the problem if you can’t define it! Take a course in Business 1A or go to an AA meeting and see what the first step is!
- Geithner on Fannie and Freddie: “We will not support returning Fannie and Freddie to the role they played before conservatorship, where they fought to take market share from private competitors while enjoying the privilege of government support.”
- What role have you given them now? Looks like the old bailout bucket is coming out again.
- They did not take market share, they socialized home ownership. Borrow a copy of Mein Kampf from your boss! (somebody forget to tell you that Freddie and Fannie are still giving campaign contributions to your boss and his party?
After watching AT LEAST FOUR economically incompetent administrations (Back to Bush I) systematically take this country’s private sector apart piece by piece, REMEMBER THAT ELECTIONS HAVE CONSEQUENCES. We need to support people with real world experience. You may scoff at Tea Parties but they understand two key principles that made this country great:
Lower Taxes Drive Economic Growth
Smaller Government is a Better Government. Government Regulation is for the Benefit of the Politicians and not the people.
We the People will make a difference on November 2nd, Make sure it is the RIGHT difference…