Tim Geithner Responds To Druckenmiller With More Fearmongering And "Assured Destruction"

Tyler Durden's picture

Not even 24 hours after Stanley Druckenmiller said to ignore all threats by the kleptocratic kartel [sic] of a world collapse should the debt ceiling not be hiked, as if on cue the tax-troubled treasury secretary has released another letter, this time to Michael Bennet, D-Colo, in which he rehashes all the usual threats that Hank Paulson pulled out of his sleeve when he presented his 3 page term sheet demanding congress give him unlimited powers to do anything Goldman, er, he saw fit to preserve the banker status quo. Nothing new in the letter, just more of the same: “A default would inflict catastrophic far-reaching damage on our
nation’s economy, significantly reducing growth and increasing
unemployment...Even a short-term default could cause irrevocable damage to
the economy. A default on Treasury debt could lead to concerns about the solvency of
the investment and financial institutions that hold Treasury
securities in their portfolios, which could cause a run on money market
mutual funds and the broader financial system. A default would call into question the status of Treasury securities as
a cornerstone of the financial system, potentially squandering this
unique role and the economic benefits that come with it." It is sad that the Treasury has succumbed to another bout of fearmongering because as Zero Hedge has been claiming since late 2009, and as Gross and Druckenmiller have recently reaffirmed, the only threat to the "confidence" of the US is if (or more correctly "when") the legislative bodies of the US succumb to this latest round of completely flawed, irresponsible and wrong mutual assured destruction rhetoric, and once again hike the debt target, this time to a total that is about 115% of US GDP.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
FOC 1183's picture

Will tiny Tim please respond to the fact that his auctions have pushed us over the debt ceiling? It almost seems like the 30 year settlements on Monday should fail.

And Tyler....that last sentance is north of 80 words. Even for you, that may be a record

lolmao500's picture

So what, raise the debt ceiling, the US was 122% in debt post WW2! The US can take lots of debt! (that's what most people believe)

Cleanclog's picture

Cuz debt = wealth!   

Except that it doesn't.  

Or it DOES if we spend and then repudiate.  Depends on which angle you look from.  Plenty of people maxed out the cards, have beautiful bangles, foreign travel, and a McMansion they're still enjoying.  Still living in the McMansion, especially in NJ and NY where the foreclosure process now takes more than 900 days.  Still living the good life, unless they have student loan debt.  That's the one thing they can't flush away in bankruptcy.  Okay to pork out on fashion designer clothing and big screen TVs (that's consumption after all) but god forbid an investment in education.  

Well, that's America 2011.  That's all folks. Thanks Bugs Bunny.  

TheFourthStooge-ing's picture

This all makes sense in the context of America's principal religion: believing that you can get something for nothing.


Quixotic_Not's picture

Money for nuthin', chicks for free!

Perhaps MTV was the beginning of the end after all?

P.S.  I knew it was over when the crackheads, led by Tranny Queen Oprah, S-Elected Obama Bin Lyin' to take the crackers down...

Like a progressive cancer, malignant to the bone.

sun tzu's picture

Is that principle religion called socialism?

StychoKiller's picture

Even worse is the "Cult" of Progressivism, wherein believers "think" that problems/disasters caused by a Govt program can be fixed by even more Govt programs -- the very definition of insanity!


i-dog's picture

Indeed ... and there are those who also think that problems caused by hundreds of thousands of pages of laws being broken and not enforced will be fixed by more 3,000-page laws that will be broken and not enforced. Sheer geniuses!

holdbuysell's picture

Make sure to load up on Fed-related CDO's before you burn it down.

TheTmfreak's picture


Timmy go fuck yourself.

Quixotic_Not's picture

Timmy go fuck yourself.

Truth is, Timmy is fuckin' everyone that has NOT converted paper to PHYSICAL PMs.

The day of the Paper Tiger is almost over...

TheTmfreak's picture

Well there is more to it than that. You're still paid (as a worker) usually a finite amount of dollars. So therefore he is fucking how much you make not just one's cash savings.

Obviously if you have your own business you can adjust prices to the Timmy fuck schemes so you're not so easily screwed over. (that is of course unless people stop wanting to buy your products because they're too expensive.)

akak's picture

Do I detect another misinformed acolyte of the Dynamic Duplicitous Duo, Bill Still the Fiat Shill and Ellen Brown the Money Clown?

downwiththebanks's picture

Do I detect another Ron "JOHN BIRCH SOCIETY" Paul acolyte who doesn't understand that the Fed is privately owned and privately managed?

akak's picture

Do I detect another clueless Marxist asshole who can't recognize a champion of liberty, personal freedom and limited government from a teleprompter-reading monkey, and who despises the concept of freedom within the monetary sphere, instead preferring a coercive statist money monopoly? 

Yes I do.

sun tzu's picture

downsyndrome is just a mouthpiece for the stupid and insane

Manthong's picture

Full faith and credit?

More like total smoke and mirrors.

sun tzu's picture

You're a dunce if you truly believe that. The Fed chariman is appointed by the president and confirmed by the senate. They have a .gov domain. They are hand in hand with the government. I suppose you believe FDIC, Fannie and Freddie are also private companies. 

downwiththebanks's picture

Wow:  people owned by the banks confirm other people who are owned by the banks to do the bidding of the banks.

Real astute analysis, clown.


GOP in 2012!

akak's picture

So you criticize Sun Tzu, after essentially agreeing with him.

You're a sharp one all right.

downwiththebanks's picture

Wow:  you're dumb.  

I thought you were ignoring what I wrote from here on out.  In the future, please do.  Your poor saliency isn't something I care about.

riley martini's picture

 The GOP are nothing but lap dogs for the Banksters . GOP prosecution =0 Banksters = $trillions. They don't call you a dittohead without reason .

baby_BLYTHE's picture

It is actually worse than that. The president doesn't really "select" the Fed Chairman, he appoints one from a pre-select list approved by the Rothschilds and TBTF banksters.

We truly are a 'comquered' nation...

CoolClo's picture

But the "Chairman" cannot be removed by the president or the senate after confirmation is completed. And don't forget the 6% taxfree dividend the "Fed" pays to its private shareholders on profits.

akak's picture

Do I detect another clueless Marxist asshole who can't recognize a champion of liberty, personal freedom and limited government from a teleprompter-reading monkey, and who despises the concept of freedom within the monetary sphere, instead preferring a coercive statist money monopoly? 

Yes I do.

downwiththebanks's picture

Here's how you ask questions:


Perhaps your favorite REPUBLICAN party/John Birch Society apparatchik should take a lesson or two.

akak's picture

I support Ron Paul because he is a principled, highly intelligent, and wise champion of liberty and limited government, and despite the fact that he is nominally a member of the GOP.  But that is far too nuanced and thought-provoking for the limited mentality of a mentally-enslaved party hack such as yourself who is still stuck in the blinkered, meaningless, and destructive left-right political paradigm.

downwiththebanks's picture

Real wise guy:  after 80 years of life he's still part of the duopoly.  In fact, he used to NOT be, right?  Perhaps nepotism plays a role?

akak's picture

Clearly you are not in any way open to honest, sincere, intelligent discourse, but are obviously here simply to antagonize, attack and troll in the most shallow and puerile manner.  You are beneath contempt.

downwiththebanks's picture

I will henceforth ignore everything you have to say in this forum

Who wrote this, GOP boy?  

tmosley's picture

Herp a durp, I judge people solely on the letter behind their name, and pay no attention to their voting record.


riley martini's picture

Those who think (4 terms)Ron Paul is doing something =0 Banksters = $trillions .

willien1derland's picture

Debt = Wealth*

*This equation requires that the Federal Government is complicit with the 'capital formation' sector ensuring that existing regulations are nominally applied, SEC has open access to PORN & that any material losses are socialized -

Great Post CC -

Calmyourself's picture

Just tell me where the full size rendition of your avatar is hiding, okay?

downwiththebanks's picture

I love these posts:  all about how working people are horrible and awful for living beyond their means.

Nothing about the bailed-out banker-gangsters who destroyed the US economy and now rely on welfare from THOSE SAME WORKING PEOPLE to fund their parasitical speculation.

The arrogance is alarming.  When the summary executions begin, "but I bought silver" won't be enough to save the lives of those who defend Jamie Dimon's UNCONDITIONAL right to rape and pillage.

sun tzu's picture

I think there were a few hundred thousand posts about the bankers and their henchmen at the Fed and Treasury. Are you throwing a hissy fit because your boy Tiny Tim is in the crosshairs? Tiny Tim gave the banksters the UNCONDITIONAL right to rape and plunder. 

downwiththebanks's picture

Yeah, because they lacked it before.

"My boy" Tiny Tim is a wholly owned subsidiary of the folks who pay your salary to sponge of working people for a living, sun tzu.

naughtius maximus's picture

Which is better, going into a million dollars into debt to pay for a small factory? Or going into a million dollars into debt to pay off your other creditors and pay yourself big bonuses?


Guess it depends on what kind of person you are.

Sudden Debt's picture

Yes. And in that time there where 2 billion people and EVERY economy in the world had their industry DESTROYED.

The US had 170 million citizens and produced stuff for the rest of the world.

There wasn't any competition in those days.

Now the US doesn't have a real industry anymore. Everything is outside the US.

There are 7 billion people.

Everybody has 50 times more stuff than they had in the 50's.

Technical developpement in those days was just mindblowing.

What needs to be invented these days to make our lives even more easy?

Robots that can whipe our ass? No thanks, I'll do that myself.


Id fight Gandhi's picture

But but we have s surplus in the service industry. We export more services than import.... I'm sure that is overlooked and will soon be outsourced to your nearest third world to "compete" better.

wisefool's picture

<sarc>come on dude. actually knock on our door. Put vietnam and other stuff behind you.

America is the last frontier for state subsidized fat girls going childless. </sarc>

The 4chan, anonymous types, and you rich people on ZH got it wrong. If timmy cheated on his taxes either directly or indireclty, Bill Murray would say it just does not matter in a keyseanian framework.

Me love the service industry long time after the millboard plow and day after stuff.

WmMcK's picture

Wipe or whip?  I'm into self-reliance but not self-flaggelation.

wisefool's picture

lets see how self reliant you are when I got 30B POMO money to short the silver market.

Go pan for silver sheep. if you find something, do a 1099. I (peronally) dont have to fill out tax forms.


sun tzu's picture

When they find a cure for retardation, you should be first in line