Fumble! Geithner speaks, dollar dives

posted at 12:12 pm on March 25, 2009 by Ed Morrissey

The Barack Obama Amateur Hour continues today, with Treasury Secretary Tim “Literally The Only Man Who Can Do The Job” Geithner speaking at the Council of Foreign Relations today.  A panelist asked Geithner about China’s call to move away from the US dollar and to create a new strategic reserve currency based on international organizations.  Geithner said that sounded great, and got the utterly predictable result:

In a blink of an eye, the U.S. dollar has collapsed against the Euro, Japanese Yen and other major currencies. The trigger was comments from Tim Geithner who said that the U.S. is “quite open” to China’s suggestion of moving towards a Special Drawing Right (SDR) linked currency system. If the world adopts the SDR, which was created by the IMF as an international reserve asset, it would mean that countries around the world would need to hold less U.S. dollars. The U.S. is probably open to this suggestion because a weaker dollar is stimulative for the U.S. economy and would relieve the U.S. from having to implement effective monetary policy while balancing the international demand for a reserve currency.

Geithner’s comments indicate that the U.S. is not taking China’s suggestion with a grain of salt and instead is giving it legitimacy. This is extremely important ahead of the G20 meeting. The only question is whether this is another amateur mistake by the new U.S. Treasury Secretary.

Question answered:

The dollar pared losses versus the euro on Wednesday after U.S. Treasury Secretary Timothy Geithner said the dollar was likely to remain the world’s reserve currency for a long time.

The U.S. dollar fell to a session low against the euro after Geithner said he was “quite open” to China’s suggestion of moving toward SDR-linked currency system.

The dollar began regaining some lost ground after the moderator nudged Geithner into a clarification.  Kathy Lien asks whether any grown-ups work in the Obama administration at all:

These contradictory statements are clearly the act of an amateur Treasury Secretary that has been thrust onto the public forum and is struggling with the need to be very particular in his choice of words. Geithner is learning the hard way about the impact that his comments can have on the currency market and despite his attempt to pacify investors, his words have left air of uncertainty in the U.S. dollar.

As if we didn’t already know that from the AIG bonus implosion.  Geithner got a reprieve from talk about his ouster with the warm reception of his toxic-asset plan this week by Wall Street, but this should really be the last straw.  If Geithner is too inexperienced or obtuse to understand that legitimizing a suggestion to move away from the dollar could be harmful to American interests — especially at a time when President Obama needs to sell trillions more in debt — then he’s too stupid by half to hold his present job.

Haven’t we lived with this embarrassment long enough?


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The uncertainty of the dollar is due to China and Russia’s proposals to replace it.

getalife on March 25, 2009 at 1:08 PM

IS ot just me or does Giethner remind anyone else of the weasely, shifty, back-stabbingly corrupt corporate guy in so many movies. To me he looks like that guy in Ghost, Tony Goldwyn (Carl), who gets Swayze (Sam, maybe the original “ditto-head“) killed because Sam uncovers Carl’s money laundering scheme at the bank they work at. It ends with a satisfying scene where Carl gets run over by a car, and then sucked in to Hell by the black angels of Satan.

…if only…

ornery_independent on March 25, 2009 at 1:08 PM

The uncertainty of the dollar is due to China and Russia’s proposals to replace it.

Not to mention, our idiot Treasury Secretary’s eagerness to embrace “change”.

Whose side is Obama on, anyway?

NoDonkey on March 25, 2009 at 1:10 PM

When I read about the China proposal, I thought to myself: “Sounds like something stupid and Kumbaya-sounding enough for Obama to go for.” Seems I was right.

Socratease on March 25, 2009 at 1:10 PM

How best to shore up the dollar?

a) Wire Geithner’s jaw shut.
b) Sew his lips closed.
c) Fire the loser.

I go for “c”, but Obama would apply “a” & “b” on any critic.

maverick muse on March 25, 2009 at 1:11 PM

The uncertainty of the dollar is due to China and Russia’s proposals to replace it.

getalife on March 25, 2009 at 1:08 PM

And Geitner saying “hey, that’s a good idea”

Mission Accomplished – getalife 3/23/09

lorien1973 on March 25, 2009 at 1:11 PM

Not sure what currency market you’re watching, but the dollar didn’t collapse. The Euro is up +0.0053. The Yen down -0.3200. And the stock market is up, so the little gain to the Euro is expected.

Go to the charts, it’s not that hard.

jonknee on March 25, 2009 at 1:12 PM

My biggest fear in all of this mess is….if we are attacked again…..where will the money come from to dig us out of that? We won’t have any one to turn to, and we won’t have anything put aside.

NotPC on March 25, 2009 at 1:13 PM

Obama holds no personal allegiance to America and our Constitution.

Obama is an authoritarian who will coerce submission and prosecute with severe unconstitutional persecution any critic.

Easier to fire him sooner than later: IMPEACH ON RECORD!

maverick muse on March 25, 2009 at 1:14 PM

the next plague is inflation. Folks we are setting the foundation for inflation pain. That is the Democrats way.

seven on March 25, 2009 at 1:15 PM

The uncertainty of the dollar is due to China and Russia’s proposals to replace it.

getalife on March 25, 2009 at 1:08 PM

And this administration is agreeing with them.

God you are dense.

sonofdy on March 25, 2009 at 1:15 PM

Indeed, perhaps a weak dollar is part of his strategy. But then maybe he shouldn’t have told Congress under oath that he supports a strong dollar.

amerpundit on March 25, 2009 at 12:40 PM

It’s a little strange to say that a subjective statement like that was “under oath.”

But regardless, are you now criticizing him for being inconsistent? If so, you have to at least nullify this entire post, whose premise was that he doesn’t understand the consequences of his words. Also, that type of inconsistency isn’t exactly a big deal. A lot has happened in terms of financial planning since his confirmation, strategies may have shifted, and he now works for the administration and not just for himself.

tneloms on March 25, 2009 at 1:17 PM

But, but…. I thought the Dollar was the most stable currency in the world. At least, that’s what our esteemed President said JUST LAST NIGHT.

Danged empty suit mouthing memorized platitudes. It’s going to be a LOOOOOOOOONG 4 years.

ExSubNuke on March 25, 2009 at 1:18 PM

…and in the same vein of movie references…

getalife reminds me of that character Beth that Rosie O’Donnell plays in Riding the Bus with My Sister

Beth might be one of the most irritating characters in recent memory, in TV or elsewhere….half-crazy half-stupid mindset…

I suggest not feeding mentally challenged the trolls.

ornery_independent on March 25, 2009 at 1:18 PM

sonofdy on March 25, 2009 at 1:15 PM

second administration official chimed in and said “eeee-nteresting” – so getalife will need new spin soon.

lorien1973 on March 25, 2009 at 1:19 PM

I realize the benefits of a weak dollar, as I mentioned above, I just don’t think they outweight all the negatives. And I don’t want some freakishly strong dollar, I’d just like to see it get near par with the Euro.

BadgerHawk on March 25, 2009 at 1:03 PM

Yes, however the price of the dollar is the price of the dollar. To increase it, you have to increase demand for it, which of course means increasing returns to holders of it. That, generally, in the case of no unusual increase in productivity, means increasing interest rates. Of course, increasing interest rates means you damage productivity and hurt those sections of the economy that have a small import component (such as housing).

The other way to improve the dollar is to improve (industrial) productivity faster than the money supply increases. In a normal world, that would usually mean widespread deployment of some kind of new technology/technologies that reduce the aggregate cost of production. Note that for many employers in the US, that technology took the form of illegal aliens, who typically work for less than their legal counter-parts. But a lot of that gain was illusory as it simply pushed cost onto government in the form of the cost burden resulting from the higher population.

In short, I too would like a stronger dollar, if it came as a consequence of improved productivity. That would mean a higher standard of living for all. Unfortunately, our government seems to be pursuing a course of a higher money supply and lower productivity (benefits for illegal aliens, minimum wages, high taxes, etc.) that will inevitably weaken our dollar, and ultimately grossly erode our standard of living.

mr.blacksheep on March 25, 2009 at 1:20 PM

One freaking day without disastrous news from this administration. Is that to much to ask? Just one freaking day.

Keyser-Soze on March 25, 2009 at 12:23 PM

Yes, it is too much to ask for one day to pass without a hyperbolic post exaggerating the deficiencies of the administration. In fact, Ed now has the Obamateurism of the Day feature to guarantee that it’s too much to ask.

This is not disastrous news. At worst, it’s a blip. Look at the dollar overall today versus the Euro. You characterize this as a disaster?

You only think there’s a daily disaster with this administration because you read a blog that claims there is. If you took a balanced, reasonable approach to the news that didn’t involve knee-jerk reactions, you wouldn’t think this.

tneloms on March 25, 2009 at 1:22 PM

My biggest fear in all of this mess is….if we are attacked again…..where will the money come from to dig us out of that? We won’t have any one to turn to, and we won’t have anything put aside.

NotPC on March 25, 2009 at 1:13 PM

Makes you wonder why Barry isn’t concerned about this as well. Maybe he’s just that arrogant; Maybe he believes that 9/11 was a personal insult meant only for George Bush, and no one would dare to challenge the U.S. with a messiah at the helm. Could he be that daft?

anniekc on March 25, 2009 at 1:22 PM

Could he be that daft?

anniekc on March 25, 2009 at 1:22 PM

Umm, let me guess. Yes?

mr.blacksheep on March 25, 2009 at 1:25 PM

seven,

As you say, youth today have no experience suffering through the deprivations that Democrat instigated inflation requires of THEM. Sacrifice is a word they apply to suckers only; and how rude the awakening to realize THEY ARE LOSERS! Every Democrat hollow promise is proven false to those who “believed” out of lazy greed that taxpayers would provide the sloths what taxpayers themselves are denied.

In the end, given free reign, Socialism destroys all. And each legislated Socialist act becoming law makes opposition that much more difficult to perform, and that much less effective as destruction has already transpired. People can’t sit back and say, “just wait for the next ballot and we’ll show them” because there is legislation in the works NOW that requires concerted effort to halt so that our next election will still be legitimately conducted.

maverick muse on March 25, 2009 at 1:26 PM

Could he be that daft?

anniekc on March 25, 2009 at 1:22 PM

Umm, let me guess. Yes?

mr.blacksheep on March 25, 2009 at 1:26 PM

seven,

As you say, youth today have no experience suffering through the deprivations that Democrat instigated inflation requires of THEM. Sacrifice is a word they apply to suckers only; and how rude the awakening to realize THEY ARE LOSERS! Every Democrat hollow promise is proven false to those who “believed” out of lazy greed that taxpayers would provide the sloths what taxpayers themselves are denied.

In the end, given free reign, Socialism destroys all. And each legislated Socialist act becoming law makes opposition that much more difficult to perform, and that much less effective as destruction has already transpired. People can’t sit back and say, “just wait for the next ballot and we’ll show them” because there is legislation in the works NOW that requires concerted effort to halt so that our next election will still be legitimately conducted.

maverick muse on March 25, 2009 at 1:27 PM

Could he be that daft?

anniekc on March 25, 2009 at 1:22 PM

Umm, let me guess. Yes?

mr.blacksheep on March 25, 2009 at 1:26 PM

Does “daft” describe the pompous mule-headed ass?

Perhaps. The Germans see Obama as Stupid. There isn’t a European who doesn’t see Obama as stupid, conservatives and socialists alike. The Asians know he’s Stupid. And the MidEaster Muslims also know exactly how to manipulate Obama’s stupidity to their best advantage to destroy America.

Presidaft Obama is pathologically unable to accept responsibility for ruining our nation’s economy, coercing us into 12% national deficit to our GDP, higher than Britain’s 10%, and over double Cuba’s deficit this year!

maverick muse on March 25, 2009 at 1:37 PM

Yes, it is too much to ask for one day to pass without a hyperbolic post exaggerating the deficiencies of the administration. In fact, Ed now has the Obamateurism of the Day feature to guarantee that it’s too much to ask.

This is not disastrous news. At worst, it’s a blip. Look at the dollar overall today versus the Euro. You characterize this as a disaster?

You only think there’s a daily disaster with this administration because you read a blog that claims there is. If you took a balanced, reasonable approach to the news that didn’t involve knee-jerk reactions, you wouldn’t think this.

tneloms on March 25, 2009 at 1:22 PM

I see we’re blessed with another maroon who likes to take a crap all over the host of this blog.

Maybe you should go back over to Kos, HuffPo or DU, where they make up the news and call that fair and balanced.

Don’t like it here or like the features that Ed gives us, well then don’t the door hit ya where the good lord split ya.

Knucklehead on March 25, 2009 at 1:39 PM

I thought the Dollar was the most stable currency in the world. At least, that’s what our esteemed President said JUST LAST NIGHT.

It’s kind of “bobbing up and down”.

Like the Titanic.

Says the Skipper of the Media Love Boat, Captain Stupid.

NoDonkey on March 25, 2009 at 1:40 PM

Weaker dollar = more outsiders buying up real estate. You think that panic of the 80s, as Japanese bought up U.S. property, was bad? Just wait until a trillion Chinese dollars hit our depressed market. Look for a McDuck being built on every corner.

I better buy up those Mandarin/English dictionaries at Borders. I’ll make a fortune.

Limerick on March 25, 2009 at 1:40 PM

mr.blacksheep on March 25, 2009 at 1:20 PM

I think we agree. Basically I want the stronger dollar because I want the government to take the steps needed to get it, mainly by stopping the insane expansion in money supply, and I’d like to see some insane advances in technology that made our goods wanted overseas regardless of the strength of our currency. I think the medical arena would be the most likely avenue for these tech advances, but the creeping socialization of our healthcare system is going to slowly choke off any incentive to create those advances.

So I really despise the weak dollar for the underlying reasons of how it got so weak more than the weakness itself.

BadgerHawk on March 25, 2009 at 1:42 PM

tneloms on March 25, 2009 at 1:22 PM

Presumptuous much? Thanks for informing me where I get my news and how I form my opinions. At least you admit the administration has deficiencies.

Keyser-Soze on March 25, 2009 at 1:43 PM

So I really despise the weak dollar for the underlying reasons of how it got so weak more than the weakness itself.

BadgerHawk on March 25, 2009 at 1:42 PM

I’m with ya on that!

mr.blacksheep on March 25, 2009 at 1:45 PM

At some point, you’ve got to start believing it’s all intentional. Deepen the crisis to take over more and more control with little resistance.

TheBigOldDog on March 25, 2009 at 1:52 PM

At some point, you’ve got to start believing it’s all intentional. Deepen the crisis to take over more and more control with little resistance.

TheBigOldDog on March 25, 2009 at 1:52 PM

I think O’Boingo thinks it’s intentional. That is, he’s trying to screw it up on purpose. However, I think his general ineptness is going to thwart him. He’ll screw up all right, but won’t be able to convert that to his Communist Utopia and will be out of there in 2012 (modulo another massive Republican cock-up), leaving a badly-damaged but still afloat America to remember Democratic perfidy for years and years.

mr.blacksheep on March 25, 2009 at 1:59 PM

“Looks” scary? It is scary when one considers the amount of money involved. Even if that matters little to you or you don’t understand currency markets, it isn’t wise to underestimate the damage Geitner is doing.

Sorry, but today’s “damage” was trivial compared to over currency fluctuations. Look here. These are the last five days. Today’s “collapse” was nothing compared to Monday’s — which seems three to four times as large — yet I heard nothing about currency markets then. And even with that huge fall, Monday wound up at the same level as it began. We’re 3% up over Friday morning. If 0.2% down greatly disturbs you, you should be ecstatic over that type of week.

Or maybe you just don’t understand currency markets.

calbear on March 25, 2009 at 2:01 PM

How long do we have to wait before we can start impeaching this president and his administration?

This president is bent on the destruction of this country and if that isn’t an impeachable offense then nothing is.

moonsbreath on March 25, 2009 at 2:03 PM

Obama is a Communist from Chicago.

A ChiCom of a different color.

And no, I’m not refering to the color of his skin. Black, white, green or orange, this guy is trouble with a capital T. He makes Carter look good, who made a few dumb moves himself. But I never thought Carter wanted to destroy this country, he was merely inept.

fogw on March 25, 2009 at 2:06 PM

Or maybe you just don’t understand currency markets.

calbear on March 25, 2009 at 2:01 PM

I trade currencies, and I certainly do understand what’s going on.

Cody1991 on March 25, 2009 at 2:07 PM

…Lots of family time seen in Geithner’s near future…
What a Homer! DOH!!!!!!!

Nelsa on March 25, 2009 at 2:08 PM

Haven’t we lived with this embarrassment long enough?

Why? Is it 2012 yet?

oldleprechaun on March 25, 2009 at 2:12 PM

I see we’re blessed with another maroon who likes to take a crap all over the host of this blog.

For the record, I always like Allah’s posts and many of Ed’s posts are good as well. But my impression is that Ed is very one-sided and serves as an attack dog against the other side, rather than someone trying to make reasonable commentary. Just because you are a conservative and a Republican, that doesn’t mean you have to be so one-sided and hyperbolic in your observations.

Maybe you should go back over to Kos, HuffPo or DU, where they make up the news and call that fair and balanced.

I don’t visit those sites, but Kos and DU are obviously ridiculous and full of one-sided, hyperbolic, screeching maniacs. HuffPo is also, to a lesser extent, but at least a lot of what’s posted there is actually news.

But just because these other sites are one-sided and uninformative, that doesn’t mean you need to do the same for the other side. Everyone would be better off if there were just honest, reasonable commentary here rather than constant one-sided attacks. Believing in conservative principles does not mean that you can only criticize gaffes and missteps of one political party.

Don’t like it here or like the features that Ed gives us, well then don’t the door hit ya where the good lord split ya.

Knucklehead on March 25, 2009 at 1:39 PM

Like I said, I like some of what’s posted here. But even if I didn’t, I think it’s a little silly to tell me that I should leave. It’s not like I’m some troll just spouting talking points and making absurd, extreme arguments and trying to piss people off. I think most of my comments here are reasonable, even if you disagree with them. Why not have an actual discussion?

tneloms on March 25, 2009 at 2:14 PM

I’m afraid that team Obama just don’t know that they won the election and the world hangs on every word they speak.

Obama certainly didn’t understand that when his first few bolviations were so full of doom, gloom and blame the rich for everything. Then the markets tanked and he slapped his head and said, “I should have had a V8″!

petunia on March 25, 2009 at 2:16 PM

Ummm I’m still not sure what’s wrong with my grammer in that last post but it is definitely wrong.

petunia on March 25, 2009 at 2:17 PM

Presumptuous much? Thanks for informing me where I get my news and how I form my opinions. At least you admit the administration has deficiencies.

Keyser-Soze on March 25, 2009 at 1:43 PM

I don’t see how one can reasonably claim that every day of this administration has been a disaster. And obviously you didn’t mean that literally, but you were certainly commenting on this particular incident, and I think it’s a gross overstatement to call this a disaster. Look at how the dollar is trading today and tell me if you really think this was a disaster.

Of course I “admit” the administration has deficiencies. Not everyone who disagrees with what’s posted here is a raving lunatic who thinks the administration is perfect. I just think that most of the “disasters” of this administration have been completely overblown.

(If you’re referring to policies that have been enacted, that’s a completely different story, because I can understand why you’re characterize that as a disaster. But that’s certainly not even close to a daily occurrence, so I don’t think that’s what you meant.)

tneloms on March 25, 2009 at 2:19 PM

the next plague is inflation. Folks we are setting the foundation for inflation pain. That is the Democrats way.

seven on March 25, 2009 at 1:15 PM

I don’t disagree.

However, I was thinking about inflation and what might could happen. I’m upside down on my house and it appears to be getting worse. It’s okay I plan to live here for awhile but… if my income kept up with inflation and my house price started to raise again slowly… I think that might be okay with me.

As long as my income kept up.

I’m just thinking outloud (in print) I may change my mind on that.

petunia on March 25, 2009 at 2:23 PM

tneloms on March 25, 2009 at 2:19 PM

as

The Obamatuerisms are a response the Bushisms that the left wrote about every day while he was in office. It’s fairly lighthearted. Don’t try to use them to call Ed one-sided. Ed’s more of a puppy dog than an attack dog, and he routinely defends President Obama against some of the more ridiculous criticisms.

BadgerHawk on March 25, 2009 at 2:24 PM

I am stupid on these things.

Can Timmmah do that, drop dollar to some world coin, w/o the people’s vote?

This is it! I am outraged enough and must do something. Get to DC find some bricks and start throwing

Mercy4Me on March 25, 2009 at 2:25 PM

Pay no attention to the ‘as’. Not sure how that got typed.

BadgerHawk on March 25, 2009 at 2:25 PM

If we survive, the Obamination’s reign of terror will serve as an example of exactly what not to do while leading a superpower. That is, until the people forget everything a generation later.

Grafted on March 25, 2009 at 2:25 PM

There is nothing amateurish about this. Barry wants large and vivid excuses to drag this country into complete socialism and the failure of the economy is a key component in his process. Geithner’s failure and lack of confidence building is calculated and puposely executed to force Wall Street to withdraw and the proposed ‘fixes’ to fail. I’ve been saying for months that this would be the way it would go down. Now even Dick Morris has recognized this ploy and he’ll get the royalties whilst I get to watch this country fail.

Griz on March 25, 2009 at 2:25 PM

“then he’s too stupid by half to hold his present job.”

but that would make him only a thousand times as bright as Obama, wouldn’t it?

notagool on March 25, 2009 at 2:27 PM

Mercy4Me on March 25, 2009 at 2:25 PM

The dollar can be traded like any other currency or stock. Normally comments wouldn’t have nearly the impact of economic conditions, but Geithner’s the Treasury Secretary, so when he makes a comment about being open to China moving away from our currency it’s a bigger deal. Notice how when he changed his comment the dollar recovered (it’s only down about 1/3% right now).

BadgerHawk on March 25, 2009 at 2:27 PM

Outstanding!

Utopian Liberal monetary policy running amuck!

canopfor on March 25, 2009 at 2:28 PM

My biggest fear in all of this mess is….if we are attacked again…..where will the money come from to dig us out of that? We won’t have any one to turn to, and we won’t have anything put aside.

NotPC on March 25, 2009 at 1:13 PM

Wartime inflation. We will NEVER go bankrupt.

We WILL inflate like we never have before.

Sapwolf on March 25, 2009 at 2:29 PM

!Indeed, perhaps a weak dollar is part of his strategy. But then maybe he shouldn’t have told Congress under oath that he supports a strong dollar.

amerpundit on March 25, 2009 at 12:40 PM

It’s a little strange to say that a subjective statement like that was “under oath.”

But regardless, are you now criticizing him for being inconsistent? If so, you have to at least nullify this entire post, whose premise was that he doesn’t understand the consequences of his words. Also, that type of inconsistency isn’t exactly a big deal. A lot has happened in terms of financial planning since his confirmation, strategies may have shifted, and he now works for the administration and not just for himself.

tneloms on March 25, 2009 at 1:17 PM

How about contradicting himself less than 48 hours later? On Monday (under oath I believe)
Michelle Bachman(R-MN) point blank asked both Geithner and Bernake if they would renounce the Chinese proposal to replace the dollar with a global currency. She was very specific and asked for an absolute answer. Both answered with an unequivocal answer…they both said no to even considering replacing the dollar under any circumstances.

I don’t know why I’m not seeing this mentioned anywhere in context to his comments today that absolutely contradict his statement before congress just 48 hours ago. It is on video.

Ed, maybe you could pull-up the video uin fromn to Michelle Bachman.

Lara on March 25, 2009 at 2:30 PM

I don’t see how one can reasonably claim that every day of this administration has been a disaster.
tneloms on March 25, 2009 at 2:19 PM

Seriously? It’s really easy, this administration has been a complete and utter disaster. And it began with abortion, and then the new entitlements, and of course we can’t forget the lovely way they handled the stock market fears… and how about that stimulus bill full of who knows what…certainly not the American people, congress, or the President. The bonuses will not be the only thing we find out about too late.

And then the absolutely wonderful way Obama has dealt with our long time allies–insulting them. And our long time non-allies, rewarding their anti-Freedom governments. And how about the way Obama has surrendered to terrorism by changing our language so we don’t call them that mean old name “terrorist” any more.

This administration is a disaster for us, our children, and our children’s children. We are no longer the land of the free.

In fact, for the first time in MY LIFE I am ashamed of my government. And that includes the Clintion and Carter years.

petunia on March 25, 2009 at 2:31 PM

I hate it when a good conversation is going on in the headlines and then it becomes a main post. I always wonder whether I should repeat my headline comment, or just jump in the current post wherever, or what.

BadgerHawk on March 25, 2009 at 12:30 PM

I just checked over there, and it’s nice to see a solid, reasonable debate going on. More of what happens in the comments should be like that.

tneloms on March 25, 2009 at 2:33 PM

Mr. Geithner: STOP TALKING.

juanito on March 25, 2009 at 2:34 PM

And the DOW fails again…

carbon_footprint on March 25, 2009 at 2:37 PM

And the DOW fails falls again…

carbon_footprint on March 25, 2009 at 2:37 PM

carbon_footprint on March 25, 2009 at 2:37 PM

The Obamatuerisms are a response the Bushisms that the left wrote about every day while he was in office. It’s fairly lighthearted. Don’t try to use them to call Ed one-sided. Ed’s more of a puppy dog than an attack dog, and he routinely defends President Obama against some of the more ridiculous criticisms.

BadgerHawk on March 25, 2009 at 2:24 PM

I agree that it’s fairly lighthearted, but my opinion of Ed was formed well before that segment started. For example, repeatedly posting about Obama’s gaffes and forming a narrative around them, while ignoring McCain’s. (Never a mention of the “Iraq-Pakistan border” comment, which was obviously a meaningless slip-up, but of course so was “57 states.”)

And Ed’s post just now about cap and trade conflict of interest was very nice to see. But there’s for me there’s no question that Ed takes a one-sided stance. It’s one thing to be one-sided about policies and values, but from reading his posts one gets the impression that Democrats are the only ones who misspeak, lie, distort, dodge, and play ridiculous political games.

tneloms on March 25, 2009 at 2:39 PM

I’m just thinking outloud (in print) I may change my mind on that.

petunia on March 25, 2009 at 2:23 PM

Inflation helps those in debt….

But punishes those who saved….

As the Government is in HUGE debt, with even Larger commitments to its citizens (soc sec and such), the Government sees inflation as a good thing…

IMO their plan is to let Cost of Living raises Lag inflation… thus costing the government less for those commitments…

Romeo13 on March 25, 2009 at 2:43 PM

the big 0 = dumb

turbo tax tim = dumber

democrats = the dumbest

I hope this clears it up for everyone.

calguyintexas on March 25, 2009 at 2:43 PM

Wartime inflation. We will NEVER go bankrupt.

We WILL inflate like we never have before.

Sapwolf on March 25, 2009 at 2:29 PM

True, but there is a limit to seigniorage.
Don’t forget that the purpose of war bonds was NOT to raise funds. They were to reduce the money supply to control inflation.

Seven Seas on March 25, 2009 at 2:46 PM

Seriously? It’s really easy, this administration has been a complete and utter disaster. And it began with abortion, and then the new entitlements, and of course we can’t forget the lovely way they handled the stock market fears… and how about that stimulus bill full of who knows what…certainly not the American people, congress, or the President. The bonuses will not be the only thing we find out about too late.

petunia on March 25, 2009 at 2:31 PM

Like I said, if you’re talking about policies and values, that’s a different story. My comment was about the daily missteps/gaffes that I think are completely overblown.

In terms of stock market fear, attempts to blame the movements of the markets over the course of two months on Obama are questionable at best, plus the market is about where it was when Obama took office.

As for insulting our allies, I also think that’s completely overblown. Do you consider Bush’s mispronunciation of names and rubbing Merkel’s shoulders to have been foreign relations disasters? I don’t. These are little things that the press and bloggers like to make a big deal out of, but ultimately have very little impact. Policies are what really makes those differences.

I assume that you will respond by saying that it’s his policies that concern you. I accept that, but that’s not what I was talking about. I was responding to the comment about daily disasters, and I don’t think there have been daily policy enactments that one could call disasters.

tneloms on March 25, 2009 at 2:47 PM

The Incredible Shrinking Dollar

March 24, 2009 – 23:00 ET

Why is no one in the media or gov speaking out when huge U.N. countries publicly attack the U.S. dollar and support dropping it as the world’s currency? (Glenn Beck)

Now we have Geithner stating that he is open to talks with China about a new world currency.

Folks, if this happens, yours and my dollars will be worth about 5 cents per dollar. The Obama administration is out to kill our economy at any cost. Wake up people!

Keemo on March 25, 2009 at 2:56 PM

In terms of stock market fear, attempts to blame the movements of the markets over the course of two months on Obama are questionable at best, plus the market is about where it was when Obama took office.

tneloms on March 25, 2009 at 2:47 PM

Actualy, everyone I know was going along just fine until we told, constantly, that we were in a crises.

No one I know had cut back spending… companies were still hiaring… contracts were going out…

Right up until we heard day in and day out that we were in the worst economic crises since the depresion…

People then lost confidence in the system, and started to save instead of spend, because they would need those saving to live through this “crises”.

My company lost 3 contracts in 4 weeks… as companies put projects on hold, because they were not going to “bet” money that their businesses would expand next year, and thus retrenched.

Capitalism at its very basic level, is the idea that I’m going to bet my money on a future positive return… but people won’t bet if they are being told that the game is about to fold…

Some of this is a self fulfilling prophecy…

Romeo13 on March 25, 2009 at 3:00 PM

I agree that it’s fairly lighthearted, but my opinion of Ed was formed well before that segment started. For example, repeatedly posting about Obama’s gaffes and forming a narrative around them, while ignoring McCain’s. (Never a mention of the “Iraq-Pakistan border” comment, which was obviously a meaningless slip-up, but of course so was “57 states.”)

And Ed’s post just now about cap and trade conflict of interest was very nice to see. But there’s for me there’s no question that Ed takes a one-sided stance. It’s one thing to be one-sided about policies and values, but from reading his posts one gets the impression that Democrats are the only ones who misspeak, lie, distort, dodge, and play ridiculous political games.

tneloms on March 25, 2009 at 2:39 PM

I didn’t realize you were posting here, but I left you a comment in the headline thread also.

As to this post: Well, President Obama makes A LOT of gaffes, and the media is generally reluctant to report on many of them the way they were with Bush. Plus, if you were a regular reader during the election you might have noticed to most of us weren’t too big on McCain (Ed and AP included).

And as for Ed’s post on Cap and Trade; I posted almost daily over at dkos for over 2 years (right up to General BetrayUs when I’d finally had enough), and I never once, not one single time, saw Markos or any of the other headliners correct the record or defend Bush on anything. HotAir is a far better place. If it weren’t you would have been banned for not conforming a long time ago.

BadgerHawk on March 25, 2009 at 3:04 PM

Actualy, everyone I know was going along just fine until we told, constantly, that we were in a crises.

No one I know had cut back spending… companies were still hiaring… contracts were going out…

Right up until we heard day in and day out that we were in the worst economic crises since the depresion…

People then lost confidence in the system, and started to save instead of spend, because they would need those saving to live through this “crises”.

My company lost 3 contracts in 4 weeks… as companies put projects on hold, because they were not going to “bet” money that their businesses would expand next year, and thus retrenched.

Capitalism at its very basic level, is the idea that I’m going to bet my money on a future positive return… but people won’t bet if they are being told that the game is about to fold…

Some of this is a self fulfilling prophecy…

Romeo13 on March 25, 2009 at 3:00 PM

I’m sorry, but if you believe in capitalism and free markets (which I do, and presumably you do too), then you can’t really blame this on a rhetoric of fear. Free markets are able to distinguish between good and bad information. So even if you think that the administration was sounding false alarm bells, the market would be able to discern that they were indeed false and would ignore them. The impact of false information on a free market is temporary, not lasting.

Regardless, the correlation you mention is clearly a stretch. Jobs and business contracts started their losses only after Obama took office? Really? Any evidence of this, aside from your anecdotal stories?

tneloms on March 25, 2009 at 3:07 PM

BadgerHawk on March 25, 2009 at 3:04 PM

HotAir is certainly a WAY better place than DKos in that regard. No comparison.

I sometimes feel tempted to start commenting over there in order to watch them accuse me of being a conservative, Bush-loving wacko. But it’s probably not worth it.

tneloms on March 25, 2009 at 3:12 PM

tneloms on March 25, 2009 at 3:07 PM

The market is not a “thing”… its made up of individual investors… what we see is nothing more than the average of trades for the day.

The market can be driven by disinformation, or propoganda, just like any other crowd.

Add in the changes in the rules, and the Governments picking of winners and losers… and you have a market where people feel they will not get a fair shake… and thus they are not playing in the market.

And I’m sorry if you don’t like my anecdotal evidence… but as someone who speaks to company IT decision makers on a daily basis… in a large market… I watched the change in attitude happen.

Bush started it… Obama accelerated it… and Timmy Geithner is part of the problem, not part of the solution.

Romeo13 on March 25, 2009 at 3:17 PM

I sometimes feel tempted to start commenting over there in order to watch them accuse me of being a conservative, Bush-loving wacko. But it’s probably not worth it.

tneloms on March 25, 2009 at 3:12 PM

It’s not. Waaaaay too little return on time invested. The daily commenters over there can’t be pulls towards the center, no matter what you say.

BadgerHawk on March 25, 2009 at 3:18 PM

Jobs and business contracts started their losses only after Obama took office? Really? Any evidence of this, aside from your anecdotal stories?

tneloms on March 25, 2009 at 3:07 PM

Please take off your blinders, and read what I wrote… did I even MENTION Obama in my origional Post?

Romeo13 on March 25, 2009 at 3:20 PM

The uncertainty of the dollar is due to China and Russia’s proposals to replace it.

getalife on March 25, 2009 at 1:08 PM
And Geitner saying “hey, that’s a good idea”

I’m sure that printing trillions and trillions of fresh greenbacks has a lot to do with that as well. We are so screwed…

Wyznowski on March 25, 2009 at 3:20 PM

Drudge has an update that WH advisor Goolsbee has refused to rule this out.

http://www.weeklystandard.com/Weblogs/TWSFP/TWSFPView.asp#10960

Yay. And the market for buying U.S. debt was apparently weaker than expected.

cs89 on March 25, 2009 at 3:25 PM

NEW YORK (AP) — Stocks lost ground Wednesday after a weak auction of U.S. government debt stirred worries about how easily Washington will be able to raise money to fund its economic rescue program.

Investors gave an unexpectedly cool response to a $24 billion auction of 5-year Treasury notes Wednesday, just a day after a $40 billion auction of 2-year notes suggested strong demand. Treasury prices also declined following the auction.

The government is running up record deficits in order to fund an array of plans to provide stimulus to the economy and support to the ailing financial system. Any suggestion that demand for U.S. government debt is weakening would be negative for stocks.

About two stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.15 billion shares.

Apparently traders are not convinced that money (or skittles) grows on Big Government trees.

Y-not on March 25, 2009 at 3:26 PM

How about contradicting himself less than 48 hours later? On Monday (under oath I believe)
Michelle Bachman(R-MN) point blank asked both Geithner and Bernake if they would renounce the Chinese proposal to replace the dollar with a global currency. She was very specific and asked for an absolute answer. Both answered with an unequivocal answer…they both said no to even considering replacing the dollar under any circumstances.

I don’t know why I’m not seeing this mentioned anywhere in context to his comments today that absolutely contradict his statement before congress just 48 hours ago. It is on video.

Ed, maybe you could pull-up the video uin fromn to Michelle Bachman.

Lara on March 25, 2009 at 2:30 PM

Thank you for mentioning that. If you click on the About tab and scroll down you’ll find emails for Michelle, AP and Ed. Here’s Ed’s if you want to send that on to him.

ed@hotair.com

INC on March 25, 2009 at 3:28 PM

Haven’t we lived with this embarrassment long enough?

It would be if he wasn’t the only person who could do this job…
I believe it was French President DeGuall who stated when asked if he felt he a certain member of his entorurage could not be replaced; “Behind me is a cemetery full of men that could not be replaced”.

right2bright on March 25, 2009 at 3:33 PM

It’s amazing how this is becoming a reality. The elite throw these trial balloons to begin to get the idea into the consciousness of the population. Obama is the perfect President to integrate us into a global currency.

Also, google New World Order and hit the “news” button and see how many mainstream articles the term is now used in. Here, I did it for you: New World Order

When Bush the elder used it it was dropped quickly due to its unpopularity, but now it’s used all over the place. Hell, it’s been on our money since the Federal Reserve elitist’s took control of our money “Novus Ordo Seclorum.” The idea is being pushed at full force, slowly seeping into our consciousness for acceptance and an inevitability. It doesn’t have to be so. We can win.

Don’t dismiss this, remember you all claim that the media is a propagandist organ of the liberal-socialist mentality, and you are correct, well the same applies the New World Order elites because they are the same as the socialists.

The New World Order is a cohesion of capitalistic corporations, international financial houses, and politicians. Their religion is a weird mix of humanistic environmentalism and has a ton of occultist’ principles. I recommend researching The Earth Charter and Steven Rockefeller. There you will find alot of information. Start here: Link

It’s almost here, but we can win. The Truth will set you free.

God Bless

True_King on March 25, 2009 at 3:35 PM

Treasury Secretary Tim “Literally The Only Man Who Can Do The Job” Geithner

If “The Job” is to kill the US and world economies within a year, I believe he may be the “Only Man Who Can Do The Job”!

taznar on March 25, 2009 at 3:38 PM

Jobs and business contracts started their losses only after Obama took office?

Philanthropists are apparently more forward-looking than most businesses. Their giving started to dry up last November in anticipation of the democrats’ war on the rich.

Across the country, college/university annual giving programs (which are smaller, unrestricted gifts, not likely to be affected by how someone’s stocks or 401K are performing) are way down. Major gifts, which are tied to the rich, started drying up when Obama won. And, yes, many of these donors specifically cite the election results as the reason.

But maybe we’ll get lucky and Barney Frank or A.G. Holder can threaten the rich to force them to “give.”

Giving: Up, but Going Down
February 25, 2009

One by one the annual studies of higher education finance — state college budgets, endowments levels, etc. — have come out, finding that last year was a good one — and that change (for the worse) is a-comin’. Add to the list today’s Voluntary Support of Education report from the Council for Aid to Education, which documents charitable giving to higher education.

The annual study is designed to be a snapshot of what has happened in a given year, and looking at the council’s 2008 study in that way, it doesn’t offer much in the way of surprises. Amid the generally upbeat news, which includes a record breaking total of $31.6 billion donated to colleges and universities, it mainly reinforces trends that have been developing for more than a decade: solid growth from year to year (up 6.2 percent in 2008, compared to an average of 5.7 percent over a decade), continued gaps between wealthy and other institutions, just under half of all contributions coming from individuals (alumni and others), and donations split pretty much between operating support and building and infrastructure needs.

Officials at the Council for Aid to Education do not make any formal attempt to predict or project the extent to which charitable giving to higher education institutions is likely to decline in the current fiscal year, 2009, and beyond. But through interviews with fund raisers and presidents at six of the 20 institutions that raised the most money in 2008, and conversations with leaders at some other colleges, said Ann E. Kaplan, who directs the Voluntary Support of Education survey, it became clear that most of them predict an end to what has been a very strong run of giving.

Y-not on March 25, 2009 at 3:39 PM

I’m sure that printing trillions and trillions of fresh greenbacks has a lot to do with that as well. We are so screwed…

Wyznowski on March 25, 2009 at 3:20 PM

Yeah. Pretty much. It’s stunning how many people are so stupid to think that any of this makes sense.

lorien1973 on March 25, 2009 at 3:45 PM

So, tell me again - when will the adults be back in charge?

locomotivebreath1901 on March 25, 2009 at 4:04 PM

Please take off your blinders, and read what I wrote… did I even MENTION Obama in my origional Post?

Romeo13 on March 25, 2009 at 3:20 PM

You’re right. I thought you were talking only about this administration, but you’re not. I disagree that the economy has suffered unduly from the fear rhetoric (and it’s almost impossible to know without being an economist and seeing the underlying information), but I read too much into your comment and responded to the wrong thing.

tneloms on March 25, 2009 at 4:15 PM

The dollar pared losses versus the euro on Wednesday after U.S. Treasury Secretary Timothy Geithner said the dollar was likely to remain the world’s reserve currency for a long time.

The U.S. dollar fell to a session low against the euro after Geithner said he was “quite open” to China’s suggestion of moving toward SDR-linked currency system.

You mean, Geithner with a single word made the life of American exporters better and of those in Europe a living hell? Praise the man.

radiofreevillage on March 25, 2009 at 4:28 PM

siks muntz ago I cudn spill trezurur but now I are wun!

Herb on March 25, 2009 at 4:34 PM

National suicide by slow inch after slow inch.
.

You mean, Geithner with a single word made the life of American exporters better and of those in Europe a living hell? Praise the man.

radiofreevillage on March 25, 2009 at 4:28 PM

.
Really? You believe that if the world dumps 4 trillion in US dollars over a short period of time because they panic and fear that it will be supplanted by the Chinese currency as the gold standard that we should praise Geithner? That’s a rhetorical question. Enjoy the ride down.

BrideOfRove on March 25, 2009 at 4:37 PM

I trade currencies, and I certainly do understand what’s going on.

Well, then I don’t think you’re being very honest in characterizing a sub-one-percent blip in the middle of single-digit daily fluctuations as “scary,” especially when the recovery from this took hours, not months or years. Greenspan’s words often shook the stock market far more, but few were calling him inexperienced or obtuse for having spoken them.

There’s plenty to criticize Geithner about without having to resort to mischaracterizing the behavior of markets. The fact that these stories are reported without actual numbers is scary to me; people can be made to think that the sky is falling just so the commentator can make a rhetorical point free of those pesky facts and figures.

calbear on March 25, 2009 at 4:37 PM

The thoughtful, reflective, evenhanded incompetence of an academic.

Angry Dumbo on March 25, 2009 at 4:44 PM

I saw a reference to this article a few weeks ago (here?) and the Corner has repeated it today:

Two weeks ago, the Sydney Morning Herald had a devastating expose of how Treasury Secretary Geithner destroyed the Indonesian economy back in the 1990s. At the time, “he was Uncle Sam’s golden-boy emissary sent into the stormy centre of what was then the world’s worst financial crisis [the Asian crisis].”

The newspaper reports that:

In a speech to a closed gathering at the Lowy Institute in Sydney on Thursday, Paul Keating [Australia Former Prime Minister] gave a starkly different account of Geithner’s record in handling the Asian crisis: “Tim Geithner was the Treasury line officer who wrote the IMF [International Monetary Fund] program for Indonesia in 1997-98, which was to apply current account solutions to a capital account crisis.”

In other words, Geithner fundamentally misdiagnosed the problem. And his misdiagnosis led to a dreadfully wrong prescription.

INC on March 25, 2009 at 4:44 PM

if the world dumps 4 trillion in US dollars over a short period of time because they panic and fear that it will be supplanted by the Chinese currency as the gold standard

Uhm, no. Nobody in the world is so insane. Chinese currency is essentially tied to U.S. dollar. Plus if U.S. dollar becomes worthless, Chinese exports will be among the first to suffer.

Your logic is only reasonable for a website like PalinForConservativeCellularBiologyAndAtmosphericSciences.com

radiofreevillage on March 25, 2009 at 4:46 PM

In Honor of the title of this article:
Geithner is Virtually Home Alone
I just HAD to photoshop THIS
Into LITTLE TIMMY GEITHNER IS HOME ALONe

LegendHasIt on March 25, 2009 at 4:46 PM

I’ve noticed that they are using the artificial crisis of “dependency on foreign oil” to advance one part of their plan. I say manufactured because the democrats have done everything possible to limit domestic production to make us more and more dependent on foreign oil.

Just imagine what they’ll be able to do with “The plummeting value of the dollar”

Never waste a crisis

darwin-t on March 25, 2009 at 4:48 PM

It’s kind of “bobbing up and down”.

Like the Titanic.

Says the Skipper of the Media Love Boat, Captain Stupid.

NoDonkey on March 25, 2009 at 1:40 PM

It’s The Minnow from Gilligan’s Island.

Oink on March 25, 2009 at 4:59 PM

So, tell me again – when will the adults be back in charge?

locomotivebreath1901 on March 25, 2009 at 4:04 PM

Hopefully in 2010.

Oink on March 25, 2009 at 5:01 PM

Timmy “Golden Boy” Geithner

MB4 on March 25, 2009 at 5:16 PM

Haven’t we lived with this embarrassment long enough?

Oh no! We have just begun.

ronsfi on March 25, 2009 at 5:18 PM

In terms of stock market fear, attempts to blame the movements of the markets over the course of two months on Obama are questionable at best, plus the market is about where it was when Obama took office.

As for insulting our allies, I also think that’s completely overblown. Do you consider Bush’s mispronunciation of names and rubbing Merkel’s shoulders to have been foreign relations disasters? I don’t. These are little things that the press and bloggers like to make a big deal out of, but ultimately have very little impact. Policies are what really makes those differences.

I assume that you will respond by saying that it’s his policies that concern you. I accept that, but that’s not what I was talking about. I was responding to the comment about daily disasters, and I don’t think there have been daily policy enactments that one could call disasters.

tneloms on March 25, 2009 at 2:47 PM

The Dow closed at 7749 today. It opened at 8279 on the morning of Obama’s inauguration, and 9323 on the day of his election. 530 points of difference is about seven percent of the Dow’s current value, so it’s not accurate to say the markets are “about where they were when Obama took office.” I rather doubt we’re going to see them “about where they were” when he was elected, any time soon.

It’s true that we haven’t had a literal disaster a day out of this Administration – it’s more like two disasters a week, tops. Ed’s regular feature about Obama gaffes was instituted as a specific response and mockery of Slate, which is still running “Bushisms” three months after the man left office. As for McCain’s gaffes, this site was never tardy in criticizing them. Allahpundit in particular made a beeline for McCain snafus, as eagerly as he would have run to Kirsten Powers look-a-like night at the local tavern.

Personally, I think all politicians of every party should be relentlessly mocked for every silly thing they say. It’s the closest we can get to keeping them humble. It’s doubly important to track the stupid statements of a man presented by the media as an infallible genius, since you can bet there will be as much coverage in the MSM of his next boneheaded remark as there were of the previous hundred or so. Politics these days is all about image control.

I’m sorry, but if you believe in capitalism and free markets (which I do, and presumably you do too), then you can’t really blame this on a rhetoric of fear. Free markets are able to distinguish between good and bad information. So even if you think that the administration was sounding false alarm bells, the market would be able to discern that they were indeed false and would ignore them. The impact of false information on a free market is temporary, not lasting.

You don’t think the markets have justifiable reasons to be nervous? How about ex post facto taxes, threats of violence against company executives, governments forcing banks like Wells-Fargo to accept bailout money they don’t want to gain control over them, titanic deficit spending, and a demonstrated unwillingness to remove or censure demonstrated incompetents like Barney Frank or Chris Dodd? How about a government that takes over a corporation, legislates a compensation plan for its employees, and then suddenly demonizes those employees to the point where mobs are forming up for bus trips to their houses? Should a fiercely competitive company be reassured by the knowledge that billions of tax dollars could suddenly be pumped into their ailing competitors to subsidize ridiculous business practices? Do you suppose the markets might feel a little less nervous when someone manages to permanently kill Obama’s insane Card Check sop to the unions, and remove the risk their labor force will be suddenly unionized overnight by a squad of thugs?

Where would the markets go to obtain reliable “good” information on what this Administration will do next? The rule of law has been frayed by activist governments, to the point where bills of attainder are openly debated as instruments of public policy. There is very little the markets can do to predict the future, especially as they nervously watch Obama’s poll numbers drop, and wonder who he might select as the next official distraction and whipping boy.

Doctor Zero on March 25, 2009 at 5:28 PM

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