So we must overlook Secretary of Treasury designate Tim Geitner's obvious tax fraud because he is a genius. The best man in the country to run the department. Geitner's proposal is to give hundreds of billions of dollars to banks to shore them up. But this isn't the job of the secretary of treasury. His job is to preserve the value of the currency.
Were Mr. Geitner to pick up a history book he would find that across the globe, and across history, cash infusions never work. In fact they are often the first step towards ruining the economy of a country.
History shows clearly from the Spanish Empire, to the Wiemar Republic, to the banana republics of South America, that when a government turns on the printing press, bad times are coming. Inflation is a genie that cannot easily be put back in to the bottle.
So what would a real "genius" do to fix the economy? Clearly the first and most important step is to keep the currency strong. If the dollar holds a high store of value, all the banks can fail, and we will recover. The price deflation will eventually bottom and confidence in the currency will bring new lenders in to the market. This confidence in the dollar will also allow these lenders to charge reasonable interest rates with the knowledge that inflation will not eat away at the investment.
If the genius Mr. Geitner gets his way, he will crank up the printing presses, cause very high inflation, and what little capital is left to lend, will be lent at exceedingly high interest rates to offset the erosion of the principle.
The stimulus program offered by Obama and the Democrats in congress has a similar flaw. The lions share of the money is spent after the next two years, and most of it is financed through debt. Much of the so called stimulus is for infrastructure, which can be stimulative but only if the infrastructure can grease the skids of productivity. Rebuilding roads and bridges is necessary, but it does nothing to increase the efficiency of the economy.
When we put all of the bailouts and stimulus packages in a nice neat little package what we find is a Keynesian model of government spending on steroids. If the economy were in recession because of over supply issues, or lack of infastructure to deliver goods and services to new markets, this approach may work. But in a recession caused by excessive credit, more credit is simply more poison and not an antidote.
All governments must do three things to survive. The first is to provide a military for defense against foreign invaders, the second is to insure the domestic peace, and the third is to to protect the currency. Everything else can be accomplished at the local level. The massive increases in spending proposed by Geitner and congress don't address any of the issues.
The obvious question is; "What leads Mr. Geitner to believe that this will work?"
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He (Mr. Geitner) is just like King Paulson and others that have taken this post. These morons think they can ask the Fed to print more paper currency. Printing our way out of this issue will never work. The alternative is cutting spending and raising taxes. This will never happen because senators and reps. need to be reelected. Look at Bush Sr. he had a great 4 years but broke one promise not to raise taxes. Enter Clinton. Time will show that spending bills like this new one in 2009 and the bailout in 2008 will have no effect on the economy. The only thing americans can do is save worthless money or buy gold. Sounds wonderful huh.
No. He hasn't been confirmed yet.
I don't belive so, but the media is being so dumbstuck with Dem love, I don't think we really are hearing much of the potential "bummer" things in this orgasmic glory - he could have been confirmed, and we prob wouldnt even know. And yes, I voted for Obama, but this is ridiculous.
Wasn't he already confirmed?
There's a very simple solution for this; we call up our state senators (which both of mine are idiots: Arlen Specter and Bob Casey Jr.) and complain to them to stop the nomination. I'm sure that if enough Senators talk to Obama, he won't choose the guy. Obama has every right to select the people he wants and trusts for his cabinet, but the United States Senate has not only the right, but the Constitutional responsibility to make sure those selections are in the best interest of the United States. And by golly, this is already one of Obama's first faults if he chooses this loser. Sorry Obama fans, but this is who you chose.
But would we save 15% or more by switching to Geitner?
If anyone is going to advocate for simpler taxes, wouldn't it be Geithner?
I kind of like this guy, he has proven to me that we do not have to pay taxes.
We saw tax cuts during war, we saw over-reaction to Sept 11 with tax cuts and rock-bottom interest rates, all in the interest of propping up the stock markets. Big money never had time to bail out, and money flowed freely. The vaults were wide open, and there was little, if any, oversight. Speculative trading was encouraged, Real Estate trusts and mortgages were traded as stock equities, banks and brokers alike were essentially able to do what they wanted regardless of the consequences. Wall Street was out of control, while we built up record deficits. In the mean time, the debt was built on the backs of the young men and women who fought and are still fighting overseas, and who will have to pay for that war when they come home. The clueless SEC, who regulate and oversee our equity markets looked the other way as organized crime of all sorts penetrated and controlled trading. Helter Skelter.
The good news is that this is the United States of America, and we can pull out of the mess they have left us. Let's not make the same mistakes going forward.
Unfortunately, our dollar's value has already been destroyed by the policies of the last 8 years.
It is in the interest of our rulers to promote bad ideology - lew rockwell
I think Eric Gurr just won the $1000 grand prize.
If Geithner was such a genius, he would have figured out how to pay his self employment taxes. Especially after the IRS audited him and told him to.
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