Wednesday, October 20, 2010

Heavy Duty Geithner B.S.

Treasury Secretary Timothy Geithner said he would use weekend meetings of G-20 finance ministers to advance efforts to "rebalance" the world economy so it is less reliant on U.S. consumers, to move toward establishing "norms" on exchange-rate policy, and to persuade others the U.S. doesn't aim to devalue its way to prosperity.

In an interview with WSJ, Geithner said the world sorely needs to agree on guidelines for exchange-rate policy. "Right now, there is no established sense of what's fair," he said.

LOL, Geithner says this as Fed chairman Bernanke is about to embark on a likely trillion dollar money printing program that will severely devalue the dollar. No one at the G-20 meetings is going to take Geithner seriously about his anti-devaluation statements.

1 comment:

  1. I think it is appropriate that you are always focusing more on Geithner than on Bernanke, as there is a lot more uncertainty wrt the Treasury Secretary's actions.

    For example, everyone's talking about the $1 trillion QE2, and nobody is talking about the $650 trillion OTC derivatives. QE1 was $12 trillion, addressing maybe 2% of the OTCDs.

    What about the other 98%? Did the winners tell the losers "Hey, its okay, you don't have to pay"? What are the mechanisms through which the losers (mainly governments) pay the winners (mainly bankers)?

    Who other than the Treasury Secretary is going to facilitate the pay offs?