Geithner Lies About The Strength Of The Dollar. The Local ‘Recovery’ In The US Depends ONLY On Government Printing Money and this Will Sink The Dollar.

The chief difficulty in pursuing paths forward in nasty economic times is choosing among conflicting ‘experts’ in the economic arena who, unfortunately, are divided along political lines. Thus, a given political power structure would obviously select some gnome with a world class reputation to instruct the world on how to orchestrate a recovery that only benefits their constituents. I believe that this is what Tim Geithner is doing. He tells fibs with impunity.

Tim Geithner speaks:

“"It's very important to the United States that we have a strong dollar," he said at a news conference at the Asia-Pacific Economic Cooperation forum, or APEC in Singapore on Thursday. "As growth recovers, (we will) move our fiscal position back into balance."”[1]—Reuters UPDATE 1-Geithner stresses strong dollar's global role Thu Nov 12, 2009 7:40am ES [Emphasis is mine in all quotes.]

It is the weak dollar that propels this surge in the stock market and the synthetic ‘recovery’ our government boasts about. The weak dollar just sets up another bubble in the future.

Krugman refutes Geithner:

The truth is that the falling dollar is good news. For one thing, it’s mainly the result of rising confidence: the dollar rose at the height of the financial crisis as panicked investors sought safe haven in America, and it’s falling again now that the fear is subsiding. And a lower dollar is good for U.S. exporters, helping us make the transition away from huge trade deficits to a more sustainable international position.”[2]--Misguided Monetary Mentalities By Paul Krugman

This is an essay in circular logic. There is no recovery now and no recovery will occur without a massive downward shift in unemployment—now heading slowly to 12% or higher—because the necessary stimuli to business [tax cuts and lowering government costs to small business midlines] will not occur for political reasons. The dreaded tax cuts are needed and those are off limits to any leftist who can spell the world economics.

From the recent past:

“Mr Luo, whose English tends toward the colloquial, added: “We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do.””[3]—wild rant by Luo Ping, a director-general at the China Banking Regulatory Commission [Emphasis is mine in all quotes.]

They are buying and stockpiling gold and other metals.

Support for these follies from the left at Harvard:

“Rogoff the notorious Harvard/IMF/FRB economist was on the Charlie Rose show advocating large tax increases and increased deficit spending and saying a currency crisis was five years away. Academics like Rogoff have been responsible for promoting all these ‘designed’ for failure products and policies. Indeed the roots of this crisis are the Rockefeller economists like Rogoff.”[4]-- Gold and Market Commentary Posted by zionistgoldreport Nov 11, 2009

I also watched the Charlie Rose show last night on Bloomberg and heard Rogoff say that the bond holders should pay for a lot of the recovery [as they did for Chrysler where they given a haircut and the unions got the assets!]. I think he is a zero-grown advocate or something similar to that because higher taxes will stifle new jobs and the green job sector has no product to sell otherwise than an oppressive, business-destroying energy tax. Kenneth is coauthor of the new book This Time is Different: Eight Centuries of Financial Folly. [5] Here is a link to a transcript of an interview.[6]

Let us all be advised that this loose and rather ill-defined group of New Keynesians  probably consisting of Paul Krugman, Kenneth Rogoff, Ben Bernanke,  Lawrence Summers and others are advocates or some close approximation of this.[7][8] There are no consistent definitions of their works and theories that precisely place them in such narrow confine as they differ on important aspects of macroeconomics but they all seem to agree that big government and big spending and, later, big taxes are the solution to a ‘recovery.’ This is socialism by any other name or something worse than socialism—a potential blend of Fascism and Marxism into a carefully-controlled government domination of the corporate world.[9] This is necessary because governments can scarcely run governments and never efficiently and the efficiency inherit in capitalism runs in the opposite direction and away from government controls. Thus the politician must combine both essential attributes and extract efficiency and apply it to political goals. Fascism does this in the context of state control of the economy with the necessary attribute of the brutality of Marxism and the mandate to redistribute he wealth and minimize private property.

The Obama Economics in the future: National Socialism or Fascism:

“The Nazis viewed private property rights as conditional upon the mode of use. If the property was not being used to further Nazi goals, it could be nationalized. Government takeovers and threats of takeovers were used to encourage complance[sic] with government production plans, even if following these plans cost profits for companies.”[10]

How does this sound in terms of Obama and Geithner speeches? Sound familiar?

Geithner [the tax cheat] prophecies:

“Geithner dismissed a suggestion that pouring hundreds of billions of dollars worldwide into spurring economic activity might lay the ground for a future inflationary surge and said finance ministers must stay focused on getting growth on more solid footing.”-- Geithner stresses strong dollar's global role

"Inflation is low and still moderating across most of the major economies," Geithner said. "The most important thing we need to be doing is try to make sure we are reinforcing this early recovery."-- Geithner stresses strong dollar's global role

They are frantically fighting a deflationary debt spiral[11][12] now and must be prepared to claw back much of this printed money before it gets multiplied by 10X in the fractional reserve system we now use for our banks.

Buffett thinks we will inflate and contradicts Geithner:

“Every country that has denominated its debt in its own currency and has found itself with uncomfortable amounts of debt relative to the rest of the world, in the end they inflate,” Buffett explains. That becomes a tax on everybody that has fixed dollar investments.”[13]--Buffett Sees Massive Inflation to Handle Staggering Debt. Monday, May 4, 2009 By Dan Weil [Emphasis is mine in all quotes]

There can be no recovery unless consumer spending returns to 66% of the GDP unless there is a way for the government to make up the difference with subsidies and energy taxes and mere unemployment entitlements. Printing money and funding phony green projects can accomplish this along with confiscating our health care system and taxing corporations to death. No wonder Ontario, Canada and Mayfair in the canton of Geneva are advertising for businesses to flee the US and U.K. Fascist governments now forming in Washington and hanging on in London.

Rogoff and Carmen Reinhart offer criticism but no solutions to the current financial crisis:

“If you looked at financial crises across virtually every continent for something like 800 years, is it just something in the nature of human beings that we go through these cycles?

KENNETH ROGOFF: There's no doubt about it. I mean, the recurring theme is arrogance and ignorance: ignorance that this has happened before in other places, in other countries; and arrogance thinking we're special, this time is different. We have financial globalization. We're running our economy better. "They're lending us a lot of money because they love us and we're doing a good job." That's what the officials think.”

So what? How do we end ‘ignorance?’ Spend more money on ‘education?’ Is Obama arrogant?

This curious circular essay states that we have a problem and we know the problem was caused by arrogance and ignorance so we have to avoid these negative attributes soon [or now] although we are locked into another financial crisis described accurately by the well-defined arrogance and ignorance of the last 800 years. This and $4 will buy you a latte at Starbucks.

We are not going to pull ourselves up from this crisis with this kind of ‘advice’ or the refocusing of our economy on  statism or blends of Marxism and Fascism or  even EcoNazism— all merely euphemisms for higher taxes that attack business. This recession will persist and government will restrict or prevent a recovery so that they can gain more control over the remaining assets and redistribute them according to leftist political theories.

Tim Geithner’s pronouncements are so much political fluff and he prevaricates openly with no regrets in China as our currency is being debased under his aegis and inflation will soar when unemployment falls or we see the end of deflation. Thus our government must do the spending for the unemployed with entitlements and strict controls and must carefully orchestrate business to not allow growth that will promote inflation. The left attempts to shift our economy to jobs in ecology and healthcare so they can forcefully mange profits, which produce the kind of independence that circumvents socialism. Only then can such a Geithner Vision be realized in fact.

Inflation will bury us. Buy gold

rycK

Comments: ryckki@gmail.com