Citigroup, And Former Fed, Economist To Take Top Treasury Post

Tyler Durden's picture

Confirming the floating rumor from last week that yet another Wall Streeter from a bailed out bank is going to set US economic policy, moments ago the Treasury announced that indeed the Citigroup economist Nathan Sheets - the bank's global head of international economics - will start working next week as a counsellor to U.S. Treasury Secretary Jack Lew.

This is the same Sheets, who ten days ago wrote that "our empirical work presents evidence that over the next few years, 10-year U.S. Treasury yields are likely to move toward 5 percent (slightly above our projections for nominal GDP growth) and to stabilize near that level. Our work suggests that Japanese rates may be on a sharply rising trajectory as well, if policymakers there get traction in taming the deflationary demons that have plagued the economy."

We already know why the Treasury likes him so much. Actually there is another reason why the Treasury likes him so much:


Nathan Sheets joined Citigroup as Global Head of International Economics in September 2011. In that role, he helps lead the firm’s team of economists around the  world. His own research focuses on global themes, with a particular emphasis on the position of the United States in the world economy.


Previously, Mr. Sheets worked at the Federal Reserve Board for 18 years in a variety of positions. From September 2007 to August 2011, he served as Director of the Board’s Division of International Finance and one of three Economists to the Federal Open Market Committee. He advised the Committee on macroeconomic and financial developments in foreign economies, as well as on the outlook for U.S. trade, the dollar, and global commodity prices. He also played a key role in developing the Fed’s swap line program with other central banks. From 2006-07, while on leave from the Board, he served as a Senior Advisor to the U.S. Executive Director at the International Monetary Fund.


Mr. Sheets received his B.A. from Brigham Young University in 1989 and his Ph.D. in economics from the Massachusetts Institute of Technology in 1993. He has published research in an array of academic journals. Mr. Sheets is a member of the Council on Foreign Relations.

Ah yes: the Fed... and MIT of course. Recall "How A Handful Of Unsupervised MIT Economists Run The World"

Some more from Reuters:

Reuters reported on Friday that the Obama administration was considering nominating Sheets to be the Treasury's top official for international affairs, a post that has been vacant since November. Sheets' new job as counsellor would give him a position at the Treasury from which to advise Lew until he is nominated and confirmed by the Senate.


Counsellor posts are sometimes used for this sort of holding pattern. For example, the administration's nominee for assistant secretary for economic policy, Karen Dynan, is currently a counsellor to Lew. The Treasury official had no comment on Sheets' nomination prospects.


If nominated and confirmed, Sheets would be a key figure in U.S. financial and economic diplomacy and would help lead international discussions on the global economy.


This would include pressing Washington's view that China should let its currency appreciate more quickly and that Europe should act more decisively to boost economic growth.


As the Treasury's undersecretary for international affairs, Sheets would have to field questions from emerging market nations whose markets are reeling from a dramatic reversal of money flows tied partly to the U.S. Federal Reserve's decision to curtail its economic stimulus.

So, in taking the "best" Citigroup idea implemented so far in the past decade, is a "bad Fed" or rather, worse Fed, on deck?

Anyway, good luck, dear former employee of Citi, the Fed and "MIT Engineer" - with EMs turmoiling you will need it.

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TruthInSunshine's picture

Citi was a really, astoundingly well-run & disciplined financial institution that didn't have to avail itself of taxpayer "benevolence" to save itself from epic insolvency, so this is a good move.

What's that? Just the opposite is true?

My bad.

eclectic syncretist's picture

What's his position title?  Taxpayer funded bailout administrator?

Winston Churchill's picture

I think his brother Carlton Sheets worked for Fannie Mae or something.

Always on the teevee pumping 'no money down' house purchases

in 05/06.

Joe Davola's picture

How long does it take for the Odono to get a consiglieri confirmed by the senate these days.

SilverIsKing's picture

He and Bernanke share the same barber.

knukles's picture

Oy veh!
At least Timmah didn't need a counselor, FFS.


Chupacabra-322's picture

This is at the very heart & soul of UNITED STATES, CORP. FASCISM.

We are "Governed" into a Political, Educational, Religious & Economic UNITED STATES, CORP based on contract law which is based on Criminal Fraud, deceit & illusion.

The Private Corp UNITED STATES, CORP uses the cover of being a functional Government when in reality they are not. Much like the Criminal Federal Reserve uses The "Federal" in their name & use it as cover to give the illusion that they are a branch of the US Government when they are not.

Through bankruptcies, Criminal Contract Fraud & deceit the Charlatans have incrementally incorporated the US as well as your souls (birth cert) which are securitized via the Criminal Federal Reserve through to the IMF.
They're functioning off corporate version of the THE CONSTITUTION. It's the reason why The Global Criminal Oligarch Cabal Bankster Intelligence Crime Syndicate continues to lie, cheat, deceit, rape & pillage with impunity.

The only power the have over you is with CONSENT (Black Law's Dictionary). Pay no Taxes. Peaceful Non-Participation, Non-Compliance & being an accessory into their Criminal system/s based on Criminal Fraud, Debt Bondage & Enslavement.

Rafferty's picture

He and Bernanke share the same barber.


And probably the same synagogue.

LMAOLORI's picture


"What's his position title?"

                                                                   Corporatism Facilitator Czar


                                       (he will aid in the transition from one Fascist to another)


Why Wal-Mart Really Needs Food Stamps


Soros, Wal-Mart scion pony up for Clinton


Walmart Moves Into the White House How money changed the president's tune on America's largest retailer
Chupacabra-322's picture


waterhorse's picture

Just another one of the many suction cups on the Creature from Jekyll Island?

ArkansasAngie's picture

If they put an honest man in the position their house would be blown away.  No way this guy has anybody but Wall Street and DC near and dear to his heart.

Pretty soon I might start demanding change that I can believe in.

TheFourthStooge-ing's picture

You just know that at some point soon, Treasury is going slip through an appointment of John Corzine, Angelo Mozilo, or Chuck Prince to some position.

For the lulz.

Trucker Glock's picture

Someone should tell him about the rash of economist/bankster deaths.

Leonardo Fibonacci2's picture

I don't get mad, i get stabby

Fat Tony

Cangaroo.TNT's picture

Previously, Mr. Sheets worked at the Federal Reserve Board for 18 years in a variety of positions.


Look at the bright side.  There is a suicide in his future.

Wahooo's picture

Aw fuck....

Mr. Sheets acted as the Fed Chairman’s international adviser at the onset of the European fiscal crisis in the spring of 2010. He was also a driving force behind the Federal Reserve Board’s global emergency lending program.

FieldingMellish's picture

Why would a reputable science university even consider having and Economics department?

Bioscale's picture

Money. A lot of money. Bullshit is expensive, sophisticated bullshit covered with math and stats is to the moon.

The Gooch's picture

and... Lots of apparatchik alumni.

ptoemmes's picture

Get to work Mr. Counselor.

ebworthen's picture

Yes, phase II of bubble II, ramp rates.

The "pump equities and get the retail and pension fund lemmings to buy into the ramp" phase appears to have been accomplished.

Next phase is to raise rates to ensure that the bubble is popped. 

The Treasury will have to pay more on the national debt?  So what, what do they care, it's not their money.

Who benefits?  Why, the banksters of course! 

And guess what?  If they are over-leveraged and collapse THEY WILL BE BAILED OUT AGAIN.

This is all by design; it is not happenstance or some unforeseen mistake.

We are being bled like the hosts to ticks, fleas, and tapeworms.


B2u's picture

Fuck you Nathan Sheets....

Sudden Debt's picture

So... what are they gona do?...



Seasmoke's picture

They stole my $100,000 down payment in house equity. We know What you bank scumbags did. And we are still here 5 years later and have not forgot !!!

Chupacabra-322's picture

The bankrupted UNITED STATES, CORP. is liquidating as we speak.

THE UNITED STATES OF AMERICA (corporation) is in its FOURTH bankruptcy!

Bankruptcy 1: 1791, about the time the Bill of Rights and signing of the Constitution was finalized.

Bankruptcy 2: 1861 (about 70 years later) resulting in the issuance of 'greenbacks'

Bankruptcy 3: 1933 (again, about 70 years later) when gold was confiscated by the government, and finally

Bankruptcy 4: NOW--since 9/11/2001 ( almost 70 years to the day as the last bankruptcy was September 10, 1933.

Colonel Klink's picture

Mighty interesting pattern of baldness.  Much like Bernanke!

Global Hunter's picture

Please forgive me, but I don't care about them as much when they're named to a post, these days I only care when they jump down a 50 foot embankment, fall off the roof of their office or their German cars explode.

Not Goldman Sachs's picture

"This is the same Sheets, who ten days ago"...I flushed down the latrine.

Or is this the same sheets, different day.

quasimodo's picture

So he would willingly sign on for a job with certain, uh, job hazards?


Dr. Engali's picture

He looks like a banker in need of a bridge.

noob's picture

Bonito. Problema resuelto.

Save_America1st's picture

If I was a banker I'd stay away from high places, ropes, cliffs, and Mercedes Benz's that explode the engine and drive train right outta the car after "bumping" into palm trees...kinda like what happened to this guy below (Michael Hastings).


Just sayin'...

Caveman93's picture

Damn! I saw another picture of what appeared to be another suicide banker and skipped the headline. Should have read that first. Very disappointed here.

Obama_4_Dictator's picture

I'm sure this will all turn out swimmingly! 

Toolshed's picture

"Previously, Mr. Sheets worked at the Federal Reserve Board for 18 years in a variety of positions."

Such as missionary, doggy style, valedictorian, stand and deliver, etc.

And now he is ready to graduate from his role as "catcher" and  take on his new role as "pitcher"!!! YAY!!!!

Save_America1st's picture

don't forget the Reverse Cowgirl, and his favorite, the Sandy Cactus with a Dirty Sanchez

Rehab Willie's picture

Have we finally run out of Goldman Sachs alums.

waterhorse's picture

Nah, he's connected to Bob Rubin, who is connected to Vampire Squid and Citi, who is connected to Federal Reserve, who is connected to Covington & Burling, who is connected to...  Rest assured, we'll NEVER run out of these inbred kleptocrats.  After all, we couldn't run the country without them!

bankonzhongguo's picture

If you drove up to the corner of a Home Depot, you would not hire one of these useless tools to shovel your shit.

You like jokes Nate?

Guess what is white, black and red and spins 'round and 'round?

A bunch of MIT economists in a blender.


waterhorse's picture

oh, thought you were going to say vampire squid in a blender.

Save_America1st's picture

If I was a banker, I'd be wearing Felix Baumgartner's suit around...just in case of a slight trip and fall...

ziggy59's picture

2 sheets to wind...

Or is it shits?

MsCreant's picture

Aw shit, I thought he had jumped too.


You're sheetin' me.

swass's picture

Did Citigroup make an informal complaint to the government that they were giving all of the top policy spots to Goldman.. er.. ex-Goldman people?

JR's picture

This is another Obama banker appointment. And it’s ludicrous to call bankers “economists” because they are two different animals. An economist who works for a bank like Citi is not an economist; he’s a banker. He marches to the banker tune. Any semblance of some kind of scientific or philosophical economic social expertise is gone once he is under the employ of The Bank.

IOW, if the Mafia hires a lawyer he’s a mafioso.

So once again, this is the arm of the Federal Reserve operating its tentacles with the full support of the Obama Administration.

And make no mistake, this is 2014 and it is a proven fact that the International Bankers came to America and grabbed the seat of government for their own profit; they are not builders, they are not producers, they are not patriots, they are not supporters of the country or its people. They are privateers.

To continue appointing and including bankers in the U.S. Treasury has become folly. And if it continues, you can say good-bye to your treasure.

Sheets is an international economist whose primary interest is the global economy.

As for globalization, it is a fact that the U.S. “economy has been debilitated by the offshoring of middle class jobs for the benefit of corporate profits and by the Federal Reserve’s policy of Quantitative Easing in order to support a few oversized banks that the government protects from market discipline. Not only does QE distort bond and stock markets, it threatens the value of the dollar and has resulted in manipulation of the gold price.”

That’s how economist Paul Craig Roberts puts it and adds: “If and when uncertainty spreads to the dollar, the real crisis will arrive, likely followed by high inflation, exchange controls, pension confiscations, and resurrected illegality of owning gold and silver. Capitalist greed aided and abetted by economists and policymakers will have destroyed America.”

Enter Citigroup's Nathan Sheets into the U.S. Treasury... to join Jack Lew who oversaw a Citigroup unit that profited off the housing collapse and financial crisis by investing in a hedge fund king who correctly predicted the eventual subprime meltdown.

swass's picture

Most non-banker economists -- oh, Paul Krugman comes to mind -- aren't any likely to suck any less than this guy.  If they aren't bankers, they are from academia.. which is worse?