Monday, March 30, 2009

I actually thought Geithner was competent

I actually thought Secretary of Commerce Geithner was competent... but I don't any more. This amateur knows of two major flaws. One of his biggest problems has been that he accepts the situation that his top aides are not yet in place - under secretaries and assistant secretaries. Uh... Tim, it's been over two months now. He should tell President O "time out. Let me get my team in place before you and I take on the whole world alone," because he can't do his job without them. Our allies the British's top bankers are complaining that they can't communicate with the US because there is no one to answer the phone. Of course there are secretaries to take messages and low-level staffers, but no one who can take responsibility to get things moving. Why would a smart man take on the challenge of his life with one hand tied behind his back? He just isn't that smart. Foolish Words Second, he doesn't know to keep his mouth shut when someone is shooting at him/us. He scored an "own goal" when he foolishly agreed with China's suggestion to add another reserve currency. After his remarks the US Dollar dropped against other currencies - the same day. Reserve Currency - The US's only payment for keeping the world safe is cooperation of the nations of the world (most of the importatnt ones) in using the US Dollar as the world's reserve currency - the standard for trade. Oil is priced in dollars, etc. Thomas PM Barnett explains this in his books such as Blueprint for Action: a world worth creating on page 128 and in every interview I have heard. (Hugh Hewitt is in the middle of doing several one-hour interviews on Barnett's latest book Great Powers: America and the world after Bush.) Here is what China said: / Asia-Pacific - China calls for new reserve currency:
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund. In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”. Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China. “This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC. Although Mr Zhou did not mention the US dollar, the essay gave a pointed critique of the current dollar-dominated monetary system.
Geithner could have said "No comment at this time" or "I disagree" or, best, assure China that it's not necessary.

1 comment:

writing term papers said...

I think that he was and is overly concerned with the deficit at a time, following the Great Recession, the government should be pursuing stimulus; and as a result, it is possible that the stimulus was smaller than it could have been