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Geithner on TV – “Keynesian economics has failed”

Bruce Krasting's picture




 

Some refreshing words from the Treasury Secretary, Tim Geithner this morning on Meet the Press. He had this to say: (15:20 into this clip) Note: An 8 second clip of Tim's words: Link

We don’t have the ability (because of the overhang in housing and the problems in the financial sector) to artificially engineer a stronger recovery.

 

Imagine that! Geithner acknowledges what I (and many others) have felt all along. The structural issues in the economy trump the government’s ability to engineer a recovery.

The Fed has taken extraordinary measures on the monetary front. Since
2009 we have had $1.2 trillion of fiscal stimulus measures as well. We
have had TARP and the bailouts of Fannie and Freddie. But the evidence
is clear that it has not worked. Unemployment is today near a record and
the more important measure, U6, is at 16.2% (about where it was a year
ago) Nothing that has been done has moved the needle.

Geithner might have put it differently. He could have really put it on the line. I would have preferred that he had said:

"Keynesian
economics has not worked. At best, it has given us a small reprieve
from the restructuring that must happen. Our government can’t fight the
forces of economics any better than we can fight the forces of nature.
Large stimulus measures will not bring the desired results. We have to
suck it up and take some pain. We can’t go on spending money that we
don’t have to fix a problem that can’t be fixed. If we tried, it would
be just be a waste of time and precious financial resources. We can no longer afford to throw good money after bad."

Of course Tim was not as blunt as that. But read his words. It means the same thing. Sorry Keynesians, I know the truth hurts.

 

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Sun, 07/10/2011 - 16:46 | 1441853 cpnscarlet
cpnscarlet's picture

Fuck your WTC7 shit. All your paranoia is no execuse for simple structural engineering...even if the destruction of some paper may have been just another excuse for evil men to escape the gallows.

The problem was simple and the solution was simple. AND WE MISSED IT.

PROBLEM: People who hate us (for who the fuck cares what reason) attacked us and see no reason to stop.

SOLUTION: "You think Islam is so FUCKING SPECIAL? Good. Do that again and we'll make turn Mecca into a bunch of glass spheres of varying sizes. We needed an excuse to see how many lousy towelheads we could incinerate in 10 milliseconds anyway."

CASE CLOSED.

RESULT: We deciced to play NICE NICE. And for different reasons, we made the same mistakes the Russians did. We're screwed, we're fucked. We're done.

NOW RESET. STOP. SUBMIT JOB. PROGRAM LOAD. ROCK AND ROLL.

 

Sun, 07/10/2011 - 23:17 | 1442552 sun tzu
sun tzu's picture

Yeah a bunch of people living in caves and mud huts in Pakistan and Afghanistan hate us for our freedoms.

BWAHAHAHAHA

You people are too fucking gullible. 

Sun, 07/10/2011 - 19:04 | 1442133 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

PROBLEM: People who hate us (for who the fuck cares what reason) attacked us and see no reason to stop.

You are right.  The people who wish that they were declared Kings instead of Dictators, ie the Bushes, Rockefellers, Harrimans, Rotheschildes, Morgans, Vanderbilts, etc, do hate us, because we do not stand for their oligarchical shit.  We want our wealth and liberty.

Do you know about their asset Tim Osman?  Didn't think so.

Sun, 07/10/2011 - 19:03 | 1442130 Ying-Yang
Ying-Yang's picture

A misinformed fool and his country will soon part.

Sun, 07/10/2011 - 18:24 | 1442054 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

The only question I have is that if it was an inside job why not load the planes with Iraqis?

Sun, 07/10/2011 - 21:38 | 1442377 FeralSerf
FeralSerf's picture

Their visas were lost in the Iraqi mail system?

Some "conspiracy theorists" suggest that the higher-up perps wanted to get their redundant workers on the aircraft.  Dead men tell no tales?  (Or collect their pay.)

Another more interesting question:  "Why were none of the accused hijackers on the planes?"  (Check the flight manifests.)

Sun, 07/10/2011 - 17:34 | 1441958 shortus cynicus
shortus cynicus's picture

PROBLEM: People who hate us (for who the fuck cares what reason) attacked us and see no reason to stop.

Parasitic virus attacking USSA do not hate, but like very much US population. And they indeed see no reason to stop - after USSA is a dead body, they can simply move to a new wealthy host.

 

Sun, 07/10/2011 - 17:58 | 1442003 cpnscarlet
cpnscarlet's picture

I'm actually a little more compassionate here than you are - they are reasoning human beings, not parasites. Problem is, they reason wrong.

Mon, 07/11/2011 - 17:53 | 1445559 BigJim
BigJim's picture

Yes, the silly bastards think we supply Israel with aid, weapons, and UN cover while the Zionists slaughter and defraud their Muslim co-religionists.

And prop up their various despots so they'll allow us to buy our oil cheap with US dollars fresh from the printing press.

Silly Ay-rabs!

Mon, 07/11/2011 - 00:27 | 1442658 tip e. canoe
tip e. canoe's picture

the virus is the thought pattern, the host is the mind.

Sun, 07/10/2011 - 17:31 | 1441952 the tower
the tower's picture

uneducated redneck moron

Sun, 07/10/2011 - 18:51 | 1442110 HowardBeale
HowardBeale's picture

Republican, Republican, Republican?

Sun, 07/10/2011 - 16:58 | 1441879 FeralSerf
FeralSerf's picture

"PROBLEM: People who hate us (for who the fuck cares what reason) attacked us and see no reason to stop."

Yep, just like they did with the USS Liberty.

http://www.rense.com/general39/pilot.htm

Sun, 07/10/2011 - 17:57 | 1442002 cpnscarlet
cpnscarlet's picture

Oh wow. A few thousand bytes of characters on a white background supposedly penned by some Aussie....I'm so convinced....thank you, master.  /sarc /skep /fu /fo /gb

Sun, 07/10/2011 - 19:13 | 1442147 Ying-Yang
Ying-Yang's picture

Do you read anything yourself or just comment?

agent provocateur?

Sun, 07/10/2011 - 18:22 | 1442047 ping
ping's picture

There's actually a load of stuff about the Liberty available online and in print. The BBC even did a documentary about it a few years ago, where they openly called it a deliberate attack on the unarmed American ship by Israel, under the pretext of being Egyptian - thus dragging the USA into the ongoing war against them evil ay-rabs.

For a 'progressive', establishment organisation like the beeb to call 'BS' on an Israeli false flag operation, the evidence had to be pretty overwhelming. Mind you, they've drunk the 'war on terror' cool aid since then. Thoroughly in the government's pocket, now.

Sun, 07/10/2011 - 18:26 | 1442064 Rick64
Rick64's picture

+100

Sun, 07/10/2011 - 17:21 | 1441930 Bastiat
Bastiat's picture

Right on, Feral.  I've been following the Liberty story since 1968.  I knew some of those guys.

 

Sun, 07/10/2011 - 17:13 | 1441914 WaterWings
WaterWings's picture

+1

Americans are a little confoozled when it comes to prioritizing threats.

Sun, 07/10/2011 - 17:23 | 1441932 FeralSerf
FeralSerf's picture

But our leaders know who butters their bread!

Sun, 07/10/2011 - 19:40 | 1442177 Sabibaby
Sabibaby's picture

.

Sun, 07/10/2011 - 16:30 | 1441821 Sudden Debt
Sudden Debt's picture

That shit just goes to deep. It would take a revolution before that would happen.

Also, we don't need that proof. For me it's already pretty clear is was a coverup back then to try to save their asses and the economy. It also shows what they are willing to do to cover it all up and what kind of power they have. That are the kind of guys that turn you into dust and make everybody believe you never existed.

 

 

Sun, 07/10/2011 - 16:46 | 1441836 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Timmah is telling you he and his have lied the whole time, nothing more.  There is no sympathy for anyone not part of his tribe.  The Illuminati must tell you what is going to happen before it does, so that way people participated in the lie, and the end result is their choice.  It's like if I told you I was going to hit you and then I did.  You did not stop me, and so you let me hit you.  You created your destiny, which is how the Illuminati creates the world illusion:  you are participating in the fraud, therefor you are part of the fraud. 

This is not meant to you, Sudden Debt, but to anyone who is whining about the system and thinking there is no out, and thinking that there is not a war on for your soul and your humanity....Suck it up and turn your guns on them, or shut up and get out of the way.

Mon, 07/11/2011 - 14:56 | 1444859 el Gallinazo
el Gallinazo's picture

How many bankers you kill this month, Lennon?

Sun, 07/10/2011 - 21:00 | 1442279 Ranger4564
Ranger4564's picture

And I hate to bring it up, but that is what Capitalism is as well... it is you participating in the oppression, complicity.  You can't blame them if you too supported the system in it's oppressions.  You see, that's why we don't give a damn about the poor. Complicity.

 

PS, You is not directed at you personally, it is the Universal YOU.

Sun, 07/10/2011 - 22:13 | 1442451 BigJim
BigJim's picture

'Capitalism', is where people who have saved more than they have consumed, use the savings (directly or indirectly) to buy equipment and hire other people to operate them.

Our system, with its regulatory capture, fiat money, and TBTF, may resemble capitalism, but it certainly is not free market capitalism.

Famine and want have been the lot of humanity except in those places where free markets have been allowed to work.

Giving 'a damn about the poor' is all very well, but if it means coercively distorting economic systems to make them better off, the gain will be temporary at best; and ultimately, make them, and everyone else, a damn sight poorer.

Mon, 07/11/2011 - 15:40 | 1445036 AnAnonymous
AnAnonymous's picture

'Capitalism', is where people who have saved more than they have consumed, use the savings (directly or indirectly) to buy equipment and hire other people to operate them.

 

Since production is consumption, how do you manage that? Your pick on conservation is ridiculous.

Mon, 07/11/2011 - 17:48 | 1445550 BigJim
BigJim's picture

Who said anything about conservation?

What are you talking about?

Regardless, I suppose an AnAnonymous comment that doesn't mention the Homestead Act of 1862 should be welcomed.

Sun, 07/10/2011 - 21:29 | 1442361 Vic Vinegar
Vic Vinegar's picture

I like it.  A lot.

Billy Joel's "We Didn't Start the Fire" should be the theme song for Zero Hedge.  There happens to be a lot of firefighters in the comments section here.  

To them, all I can say is good luck.  But you are going to need a bigger hose:

http://www.youtube.com/watch?v=eFTLKWw542g

 

Sun, 07/10/2011 - 20:20 | 1442225 Reptil
Reptil's picture

Yessir, you got it.

Basically they're saying, AFTER they've sunk the ship; "get in our lifeboat, or sink with the ignorant masses".

Therefore stealth is part of the game (Treaty of Lisbon), they can't move without it.

The "choice" they present, even after wrecking existing systems, is artificial of course, it's denying a multitude of other choices, how to deal with it. The obvious one, to punish those that perpetrated the crime in the first place, is conveniently hidden in plain sight.

You're absolutely right in identifying the "war on your soul and humanity". How to proceed is not that easy though. One will be fighting both the ignorant, and the criminals themselves, and face a judiciairy that is clearly very confused as for what their job actually entails. In short, a "coup d' état" has taken place, and is still taking place, in different stages, both in the USA and Europe.

One positive example how this process, which is invariably presented as "inevitable" (just like GMO or fission nuclear) is now meeting resistance: http://www.eubusiness.com/news-eu/denmark-treaty.80d/

A possible solution is to starve the system, and withdraw ALL coöperation. Personally, I don't think this is enough, and it is dangerous, since chaos is the stated intermediate goal of the Illuminati. On the other hand, the system has been turned upside down, and IMHO cannot be easily repaired: Too many have disgraced their function in the system with traitorous acts. A constructive, positive alternative must therefore be established. One that is both simple to understand, and complicated, in that it cannot be hijacked easily, like the Tea Party was, and it must be competative, instead of another compromise.

Sun, 07/10/2011 - 20:58 | 1442273 Vic Vinegar
Vic Vinegar's picture

No disrespect intended, but when you start with this talk of wars/souls/humanity you aren't appreciating how the world really works.

The Tea Party had a nice spirit but its demise was baked into the cake from Day 1.  

Change happens.   

Sun, 07/10/2011 - 17:32 | 1441955 tip e. canoe
tip e. canoe's picture

"The Illuminati must tell you what is going to happen before it does, so that way people participated in the lie, and the end result is their choice."

very important point to the whole shebang

Sun, 07/10/2011 - 22:32 | 1442477 TBT or not TBT
TBT or not TBT's picture

"shebang" is no longer a preferred term in these enlightened times, given the widespread (ahem) connotation of the word "bang" in reference to ah, well, say no more, as they say.

Mon, 07/11/2011 - 00:30 | 1442662 tip e. canoe
tip e. canoe's picture

ok then, how about "hebang"?  "itbang"?   "theybang"  "ibang"  "youbang"  "we-all-bang"?

Sun, 07/10/2011 - 18:24 | 1442056 knukles
knukles's picture

Perceptions management at it's best, yessiree.

Sun, 07/10/2011 - 16:00 | 1441778 There is No Spoon
There is No Spoon's picture

He's saying he's throwing in the towel and quitting his job soon, Bernanke will follow suit in short order, and Dimon will take over one of their positions.

Sun, 07/10/2011 - 17:20 | 1441921 French Frog
French Frog's picture

or both maybe ?

Sun, 07/10/2011 - 18:22 | 1442046 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

What do you mean, like a hermaphrodite?

Sun, 07/10/2011 - 16:23 | 1441808 Quinvarius
Quinvarius's picture

I pity the guy who takes over JPM from Dimon.  But since it is going down in flames, they will give it to a woman.

Sun, 07/10/2011 - 16:30 | 1441822 sampo
sampo's picture

Blythe getting a chance to deal with the wonderchild's creations?

Mon, 07/11/2011 - 14:52 | 1444849 el Gallinazo
el Gallinazo's picture

You sure Blythe's a woman? I want to count her chromosomes.

Sun, 07/10/2011 - 15:51 | 1441759 High Wire
High Wire's picture

Schadenfreude aside, it sounds like he's saying there will be no QE3.  Is that what others are hearing?

Sun, 07/10/2011 - 17:46 | 1441978 asteroids
asteroids's picture

Fucking weasel. I watched him squirm during the interview spewing lies and misdirection. The misery this man will create for the next 10 years will not be soon forgot.

Sun, 07/10/2011 - 17:11 | 1441908 Popo
Popo's picture

Dupe

Sun, 07/10/2011 - 17:26 | 1441943 doesmybuttlookf...
doesmybuttlookfatinthis's picture

Can you feel that Paul Krugmann? That is a pine cone being shoved up your ass. And with no KY.LOL

Sun, 07/10/2011 - 18:20 | 1442040 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

I don't think giving $4 Trillion to the richest 1% of the US population, no questions asked, was really what Krugman had in mind when he was talking about Keynsian Economics

Sun, 07/10/2011 - 18:58 | 1442112 doesmybuttlookf...
doesmybuttlookfatinthis's picture

You're right he wanted to make it 6 trillion. The arrogant fuck didn't care about who the money went to. He cared about one thing. Don't destroy my God (Keyens). Don't make my (professional) life and my Nobel peace prize a meaningless pile of stinking, steaming turds. His pontificating about how to fix this economy should go down in history along with Chaimberlan's "piece in our time" announcement before Hitler inserted the pine cone up his ass.

Sun, 07/10/2011 - 23:54 | 1442622 Fred Hayek
Fred Hayek's picture

Yup. And if you go back to 2001 or 2002, you can dig up all kinds of quotes from Krugman saying, essentially, "Hey, lets pump up the housing sector to get us out of this incipient recession."

But he'll never take even a tiny percentage of ownership for the housing bubble.

Mon, 07/11/2011 - 05:32 | 1442912 StychoKiller
StychoKiller's picture

Paul Krugman (Economist) 2002:  "The basic point is that the recession of 2001 wasn't a typical postwar slump... To fight this recession the Fed needs more than a snapback... Alan Greenspan needs to create a Housing bubble to replace
the Nasdaq bubble."

Barney Frank (Congressman) 2003:  "I want to roll the dice a little bit more in this situation toward subsidized housing."

Barney Frank 2008:  "I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under."

Maxine Waters (Congresswoman) 2003:  "If it ain't broke, why do you want to fix it?  Have the GSEs (Freddie and Fannie) ever missed their housing goals?"

Chris Dodd (Senator) 2004:  "This [Government Sponsored Housing] is one of the great success stories of all time..."

When Politicians tinker with the tax code to favor the sorts of investments they think people should make (i.e., Housing), we should NOT be surprised if market distortions result!

 

The Krugman was not the only buffoon!

Sun, 07/10/2011 - 18:22 | 1442048 knukles
knukles's picture

Exactly.

The Krugmeister was implying "Been supporting you fucks all along.  Where's my taste?" 

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