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)
The threat of inflation
By John Schroy, on March 31st, 2009 |

The supremacy of the US dollar is not yet dead, but portents of a fatal cancer — inflation — are there for all to see.
The extreme, profligate spending of the Obama administration, combined with populist, irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy.
Furthermore, a large part of the American electorate doesn’t understand or is unaware of what lies ahead.
Devaluation threatens investors
By John Schroy, on March 30th, 2009 |

In the financial crisis, the US Treasury took steps to protect the dollar as the world reserve currency, allowing AIG funds to pass through to foreign banks and engaging in currency swaps with foreign central banks.
However, the Pelosi-Reid Congress, by unprecedented domestic spending, has raised a real possibility of future high-level inflation. It will be up to US voters whether government finances return to a reasonable basis. The Federal Reserve cannot neutralize the negative impact an out-of-control Congress.
US Politics
By John Schroy, on March 20th, 2009 |

The Obama administration’s policies of increasing taxes and attacking capitalists in the midst of a recession suggests that the future may be deflation and continued unemployment. However, Obama’s popularity is falling rapidly. The voters may rise up in 2010 and put a stop to his destructive policies.
However, the effects of the extreme deficit spending of the Pelosi-Reid Congress will continue. This suggests that the threat will be inflation, not deflation.
How prepared are Americans for high inflation? This article outlines what to expect.
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