Rep. Paul Ryan Slams Geithner, Tells The Secretary He Should Be Most Concerned By "Bond Vigilante" Criticism

Tyler Durden's picture

Today's Geithner drubbing comes courtesy of Sen. Paul Ryan, who in a brief 3 minutes presentation indicates why the proposed budget is not only a joke (the fact that he compares it to a "box of cigarettes" speaks words for the future health of this country. One wonders if it is Ben Bernanke or Goldman Sachs who has assumed the role of Surgeon General), but why the bond vigilantes are just waiting in the corridors to see the Fed and PD's control over the bond market slip before they bring the house down.

Ryan begins:

"If you are going to solve this [budget] problem, why don't you do that. Why don't you give us a budget that actually gets the deficits to a sustainable level."

Then Ruan quotes a very prescient observation from Peter Orszag before the WSJ:

"The 'unusual situation' the government finds itself in—with other
countries willing to finance U.S. debt at low rates— won't last. When it flips, the question is how do you get ahead of that
to avoid the downward spiral of rising interest rates, a plunging
dollar and a sinking economy."

He concludes:

"The vigilantes in the bond markets are going to get us, and the American people are going to get hurt. Why aren't you giving us a budget not punting to a commission, but why aren't you giving us a budget that using your own definitions and standards is actually sustainable... You can blame Bush only so long... You obviously inherited a tough situation, you are only making it worse."

Since the Fed and Primary Dealers controls the bond market (for now), Rep. Paul has nothing to worry about. For now.

Cllick on graphic below and fast forward to 62 minutes in the video for exchange.

h/t An0nym0us

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BlackBeard's picture

How can anyone not hate that stupid stupid face?!?

AN0NYM0US's picture

This   link  takes you directly to the clip


bugs_'s picture

You just know he is saying F.Y.VERY MUCH.

Ripped Chunk's picture

Reminds me of a kid I went to school with that cheated on most of his exams.  I didn't really think about the moral aspect of it at the time.

Now I think about it every day.

TraderMark's picture

that was my first thought as well


"would you trust this smile"?

I've seen it as used car lots.

TraderMark's picture

geez, I thought that photo was just Tyler grabbing the most swarmy screen shot he could to make Geithner look silly.


But he has that damn smile on for half the 3 minute clip with Ryan.

As an aside I saw Ryan in 2008, in a few interviews and my first thought was GOP candidate for Prez in 2016.

When the bond vigilantes finally come visit the US this will be a helpful clip for him.

Anonymous's picture

maybe their publicists told him he would be 'more' presentable by keeping his nasty grill on display...?

Gilgamesh's picture

Mark, it's in the plans.

Could you write him a note an encourage him to run for the Senate this year, and kick out the jackass in the seat now?  It would help him in the run for Pres in '16, but he is getting advice to the opposite from his handlers...  Every little bit from national voters helps.

Anonymous's picture

Quoting from page 653 of "the Partnership--The Making of Goldman Sachs."

Paulson was determined to establish a major business for Goldman Sachs in private equity and real estate-- not as agent, but as principal investor.


Quoting from TIME, special report, August 11th, 2008. (yes, months before the crash)

Paulson states " The President's Working Group on Financial Markets, an inter agency collection of regulators led by Paulson, had actually been looking into potential problems with hedge funds and derivatives. But they missed CDOs. Paulson terms the oversight "obvious after the fact."


Hank Paulson's sister is a residential real estate broker in Colorado as he states in his memoirs. So Hank's sister never even brought up the housing market over Thanks Giving dinner?

"Obvious after the fact" Gee do you really fucking think so?

tenaciousj's picture

Ever think there was a point where Geithner was looking around the room for the sucker they were gonna throw under the bus, then realized... 'oh shit'

Cognitive Dissonance's picture

I love the "sucker at the poker table might be you" analogy. I personally think all the so called "public" faces (Bernanke, Geithner, various political critters including Obama etc) are the actual suckers or patsies. The real power behind these people never ever show their faces to the world.

Ripped Chunk's picture

"The real power behind these people never ever show their faces to the world."

Cuts down on tax audits from rouge IRS employess with an axe to grind.  Oh yea, also cuts down on assasination attempts.

Anonymous's picture

we can easily determine the real powers....some
of them are right in front of our faces while others
a bit more obscure....

nonetheless, follow the money and follow the power...
look in academia, business, and
will find a gaggle of fellow travellers who pull
the strings on the puppets....

the leitmotifs are internationalism and collectivism -
socialism for the poor and the plutocrats....

there is absolutely no significance to political
party - they are all one and the same answering
to the same cabal...

they are not a monolithic whole but over time
they move in the same direction towards bigger
government and smaller people....the elite know
better and will remind you of it any time you
dare to exercise a single brain cell....

and unfortunately the sheeple most often support
the power elite...finding lines between us and
them is difficult if not impossible even if mr
floyd is your guide...

Anonymous's picture

I agree with this (mostly). For those who know much about the Mormon religion... there are a number of stages you go through and at each stage more is "revealed". Most of outward religious stuff happens early... the power structure is revealed as one "grows up" through the ranks. I think the real power structure in this country (in the world really), behaves in much the same way. The lowest levels are really just the rank and file R's and D's.

I think sometimes the patsies know they are going to be the mark and they play their role and sometimes they don't (and it really doesn't matter much in the long run). And I think on rare occasions, some of the real power does in fact show their faces to world. I think GHWB, Kissinger, Rumsfeld are possible examples. (conspiracy off)

Cognitive Dissonance's picture

There are many many levels and they ebb and flow over the centuries. If a Rumsfeld or GHWB comes onto the scene, they simply have been given the keys to a larger more powerful vehicle for whatever reason.

IMHO the face of the "real" power is never ever exposed to the public and rarely if ever exposed to the patsies, regardless of the level the patsy currently occupies. They are simply controlled by the patsy above, who also has a master(s) to answer to. We are all just cogs in the mechanism. Some are more powerful than others and thus enjoy more of the perks. The illusion of self control is itself the most powerful control mechanism in the world.

Ripped Chunk's picture

So how to fix?????

Any one with a suggestion?

When I post what I think the answer is, I get booed off the stage.  Look closely at the history of these people and you will see that the tools that they use to gain and maintain power, are the same ones that will be needed to destroy them.


viahj's picture

Kinda like in the movie "Trading Places"?

Ripped Chunk's picture

"Going around shootin' people in the kneecaps just because you are pissed at em' won't work. That's called assault with a deadly weapon. You'll get 20 years for that shit" 

John McCloy's picture

Hes has been at the Lee Strassberg School of acting the past few weeks. They have been coaching him with two prime retorts to everything:

1) We inherited this. (This way anytime a clip is shown to on prime time if ever the democrat subliminal "Blame it on Bush M.O." remains visible..AKA deflection from Pres. Obama administration.

2) Timmy G's favorite lately. "And If you will join us". He says this 45 times per hearing. Nobody needs to join you . We need to boot you and prosecute you for stealing from the Treasury. It is treason pal.

faustian bargain's picture

The "we inherited this" line is especially rich, given his prior position.

TheGoodDoctor's picture

Yeah it would be great if he had a Freudian slip saying "We created, er inherited this."

WaterWings's picture


We'll never know if that pink elephant was left out on purpose.

Separately, Geithner doesn't seem to take much time on personal grooming. Look at those teeth!

ratava's picture

normal teeth, you just watch too much tv

Cognitive Dissonance's picture

Didn't you read the memo? Everything on TV is normal and what you experience in "life" is abnormal. This is why you must purchase everything advertised on the tube and become intimately involved in the personal life of every single person you see on the tube.

I know that sounds totally silly when written but for the average Joe, as much as they claim to know the difference between TV and reality, they consistently have difficulty recognizing the difference.

There were some interesting experiments done shortly after brain scans became advanced enough to watch the brain "work" in real time. The subconscious can't tell the difference between real and TV. To the unconscious mind, they are the same thing. This is because the unconscious mind has no filters or ability to tell the difference between the two. And our unconscious mind is the controlling entity in our day to day experience.

So when a person is shown a real object while the brain is being scanned, certain parts of the brain light up with activity. When the person sees a picture of the same object, the same parts of the brain light up. When a person holds a real object in his hand, certain parts of the brain light up. When the person sees a picture of him or herself holding an object, the same parts of the brain light up.

There is no difference between real and fake to the unconscious mind, which is one of the reasons dreams are real to the (now conscious) unconscious mind. This is why advertising and propaganda are so effective. I've been studying this for months. It explains a lot of what's going on and why we as a nation are not resisting these bastards.

WaterWings's picture


This isn't just neat-o information, CD. You've hit upon one of the most important topics ever! in human history.

It explains a lot of what's going on and why we as a nation are not resisting these bastards.

And why they also feel so much smarter and snarkier than you whenever you tell them things are going to get ugly pretty soon. Television makes me sick: nothing but sarcasm padded with car and mattress-liquidation-sale commercials. Whenever our fellow komrads are surfing the interwebs it's Facebook, email and "news" like this:

If only they knew the Mogambo "Freaking" Guru is back!

faustian bargain's picture

I repost relevant news stories - and the occasional zerohedge posting - on facebook often. I'm guessing most of my facebook 'friends' think I'm a little eccentric by now.

WaterWings's picture

I think most of my friends and family blocked/deleted me a long time ago. Facebook is my soapbox - not my recipe exchange tool. If I want to exchange recipes with someone I ply her with alcohol first. Months later she is probably explaining to her friends, "My ex-boymonsterfriend would only talk about the economy, machine guns, and the Gaza Strip. What planet was he on!"

merehuman's picture

I submit , thoughts create, negative attitude = negative thought

negative thought = negative reality being created.

Some folks hear the same song all day= and fail to change it.

No effort is made to teach our  children to watch and guide those thoughts, nor do we as adults perfect our ability to manage our emotions. We are still children in many ways. Even those who pull the strings of power.  

Being human is only  one part of being alive. I see myself as a unit of awareness and the human i can become is a managed asset led and powered by the greatest asset... LOVE.

Lets change  OURSELVES , recognize when we have enuff, share when we have too much.

The real world is not built on money but on TRUST. Without love of self theres no honor therefore no trust.


Anonymous's picture

MH -
We look forward to following your lead as you immediately give away your assets and income down to world average levels. Behind you all the way.

WaterWings's picture


Hey, MH! No yoga mats here!

percolator's picture

Oh, how I'd love watch someone waterboard Timmy to get the truth out of him.

Cpl Hicks's picture

I bet he would spill his guts as soon as you started to bend a pinky finger back.

Ripped Chunk's picture

No doubt. He is informer to the bone and a total pussy. 

Makes you wonder why they picked him? Don't. He has been the sacrificial lamb that knows only enough to get himself jailed. And that has been the plan from day 1.

Anonymous's picture

Of course he's the patsie, they've had him over the proverbial barrel ever since they knew he failed to pay Federal taxes. You and me, possible hard time in Federal prison, Little Timmie, the perfect fall guy.

They probably researched his background and picked him with the full knowledge about his tax problems and knowing he would be easily pliable.

I have to agree with the other commenter about being coached. After last sessions asshole reaming he was showing a lot of angry faces, this time its all smiles and grins.

Steak's picture

The Dark Knight for President!

<Batman has no "jurisdiction." He'll find him and make him squeal! I know the squealers when I see them.>

Miles Kendig's picture

Send Timmay and the rest to The SERE school located at Fort Bragg N.C. and let the cadre there do their job.  We would have the whole picture within 21 days.  All of it.  After all, American politicians enacted the repeal of Habeas Corpus, unlawful search & seizure, extraordinary rendition and unlimited imprisonment without trial for American citizens.  It's time these folks discovered what they enacted first hand. 

IBelieveInMagic's picture

How do you cut the budget when more than half of it is pretty much untouchable that are programs continuing from the past -- every program appears to be a holy cow! Defense is the biggest of all.

Truthfully, we are all indulging in wishful thinking -- no politician is willing to offend any entrenched interests. So, the deficits can only continue to grow until the market turns on them. Then, they will hopefully get the cover to perform the painful reform required. Until that point in time, we are just venting!


Anonymous's picture

They could start by cutting federal wages 10% and laying off some of the federal workforce like many states and municipalities have been doing instead of giving federal workers a 2% raise and adding many more emplyees. That is just unbelievable.

BS Inc.'s picture

How do you cut the budget when more than half of it is pretty much untouchable that are programs continuing from the past -- every program appears to be a holy cow! Defense is the biggest of all.

Yes. Institutional economics predicts that small groups of extremely interested people will almost always be able to mount a defense of their interests against taxpayers, who are too diffuse to band together to stop the small group. Employees of these programs constitute just such a small group and the Congress members who "own" the programs are not about to see the programs cut and their little fiefdom dismantled.

I mentioned the other day that there are still "emergency" farm programs from the Great Depression era.

Mancur Olson and the "public choice" economists had this phenomenon nailed already in the 1960s, it's just that, at the time, it seemed like the game could go on forever. Well, right about now is the practical equivalent of the end of "forever". Either that, or we're going to go full-on Japan-style Keynesianism and screw ourselves even more so that a few million government employees can keep their Ponzi going.

John117's picture

Uh, hello.  800 lbs Gorilla in the room over here.  Hello!

By  "small groups of extremely interested people", I suppose you mean the 57.6 million people who received a Social Security check in Dec 2009 , or the 44.8 million who received Medicare payments in Feb 2008 (latest # I could quickly find)  or the 58.7 million Medicaid enrollees in 2009.

We need a serious discussion on how to dramatically change our entitlement system.  EVERYTHING ELSE, including the defense budget, is peanuts in comparison.  Dave Walker is right.  In less then 10 years, growth in these three budget line items crowds out ALL non-discretionary spending, ALL.  And we're not even talking about then because they are sacred cows.

OK, Thank you.  You can all go back to complaining about Goldman Sachs & HFT now.  


BS Inc.'s picture

By  "small groups of extremely interested people", I suppose you mean the 57.6 million people who received a Social Security check in Dec 2009 , or the 44.8 million who received Medicare payments in Feb 2008 (latest # I could quickly find)  or the 58.7 million Medicaid enrollees in 2009.

To a certain extent, you are correct. However, let's not forget that the attempts at reforming those programs are constantly thwarted by the "custodians" of the programs themselves, who muddy the waters with propaganda of old folks being thrown out into the streets or living in poverty if even a penny of those programs is touched. Notwithstanding the fact that, yes, there would need to be periods of grandfathering-in to ensure that people were not left destitute, over the long-run, dismantling those programs is in the interests of everyone. Everyone except those in the Federal government who derive their power from those programs, of course.

So, the trail does lead back to that "small group of people". The small group just happens to have persuaded a much larger group that the programs are "sacred cows".

Anonymous's picture

Tho the defense budget maybe relative "peanuts", I would put it to you that killing lots of people in other (non-attacking) countries, maintaining hundreds of bases worldwide, and killing/maiming/mentally fucking up thousands of our own people yearly is NOT a good return on investment at all. Of course I don't believe in the hyperventilated (and fabricated) threats to "our great society" so this probably qualifies me for being some form of anarchist.

At least individuals contributed money from their paychecks for the SS coverage, so I feel they are at least owed back what they put into it. But I feel me must begin to transition out of this present model too. My generation (I'm 41) is likely screwed out of 1-2 decades of pmts.

faustian bargain's picture

The only thing that politically allows the profligacy to continue, decade after decade, is the Fed's printing press. If massive government spending were forced to be covered by actual taxes (not invisible inflation taxes), you can bet those policies would be heavily curtailed due to a highly stressed population of taxpayers. The taxpaying middle class has gotten off easy for a long time, which is why more of them are not vocal in opposing ever-expanding government.

Please note that I am not in favor of raising taxes, but rather of rational accounting and of ending destructive monetary policy.

docj's picture

Well, how's that working for California?  The US writ-large is probably only about 2-3 years behind Cali on the road to default, and Cali will likely be there before we know it.