Geithner sees no risk of double dip, reiterates the "strong-dollar" policy

It's amazing the kinds of things politicians are ready to say even on the records...
Geithner is one of the members definitely deserving his job as part of the most arrogant and least honest government the US has ever had. Here are the highlights of his speech at the Council of Foreign Relations:

  • A strong dollar policy is what we are pursuing
  • The costs of the bailout will be trivially small
  • There is no risk of double dip recession.
To find out the truth, do as usual with politicians: just take the exact opposite of their statement at face value.

Treasury Secretary Tim Geithner reiterated and defended the "strong-dollar" policy following a speech Tuesday at the Council on Foreign Relations in New York.

"Our policy has been and will always be, as long, at least, as I'm in this job, that a strong dollar is in our interest as a country," Geithner said in response to a question. "And we will never embrace a strategy of trying to weaken our currency to gain economic advantage at the expense of our trading partners."

President Obama's former chief economic adviser, Christina Romer, recently described here how the administration sees benefits from a weak dollar, but Geithner was having none of it. (See: Christina Romer: A Weaker Dollar Is Good For America)

Unbowed by the dollar's recent weakness — it hit its lowest level since August 2008 Tuesday -- or record-setting gold and silver prices, Geithner reiterated a now familiar theme among policymakers: The dollar's strength during the "darkest moments" of the crisis is "very encouraging," he said, and shows investors "retain fundamental confidence in the ability of the U.S. to manage" its long-term budget issues.
The Bailouts: The direct cost to the U.S. government will be "trivially small," even when including the expansion of the Fed's balance sheet and the Treasury's exposure to Fannie Mae, Freddie Mac and AIG.

Geithner said that there is no risk of a double dip. This sounds like the 100% confidence that Bernanke has about his ability to both foster growth. He cannot foster economic growth, only credit growth, at which he is failing, and monetary base growth, which he is succeeding.

No comments: