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Subject: Timothy Geithner

Timothy Franz Geithner; born August 18, 1961) is the 75th and current United States Secretary of the Treasury, serving under President Barack Obama. He was previously the president of the Federal Reserve Bank of New York.
Geithner’s position includes a large role in directing the Federal Government’s spending on the financial crisis of 2007–2010, including allocation of the $350 billion of Troubled Asset Relief Program funds. At the end of his first year in office, he continued to deal with multiple high visibility issues, including administration efforts to restructure the regulation of the nation’s financial system, attempts to spur recovery of both the mortgage market and the automobile industry, demands for protectionism, President Obama’s tax changes, and negotiations with foreign governments on approaches to worldwide financial issues. (Wikipedia Feb 2010)

Storm coming:

How to survive the coming inflation

Money as wallpaper. Germany 1923.

When the government spends much more than it takes in, inflation results. The Obama administration is spending a lot more that it should.

In fact, Congressional authorization for deficit spending is now at historic levels. Will Americans paper their walls with dollar bills when inflation hits?

So far, most Congressional authorizations have not been disbursed. But as spending budgets are executed, inflation should kick in.

Market regulation

Effective financial reform unlikely in 2010

Ferdinand Pecora (1933)

The financial reforms of the New Deal lasted for over fifty years and were based on two years of work by the US Senate Pecora Commission, spanning two administrations with bipartisan support.

In contrast, the Obama “reforms” are being concocted in secret to be rushed through the Pelosi-Reid Congress, already famous for passing substantial legislation in the dark of night, without reading the text.

Historically, slap-dash, one-party ‘reforms’ have not survived a Congress controlled by the other party.

International finance

Who chooses the global reserve currency?

An alternate

Who determines the ‘world reserve currency’? Central bankers? IMF officials? College professors?

The answer is ‘none of the above’. In an open, global economy, the world reserve currency is determined by the judgment of millions of importers and exporters in many countries.

The world reserve currency is decided by consensus and the personal decisions of exporters as to what currency they will accept for their goods.

On this basis, it’s too early to count the dollar out.

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2010-11-10 16:04