Tim Geithner Glitch In The Matrix Special: Will America Become Greece In Two Years - "No Risk Of That"

Tyler Durden's picture

Geithner April 2011:  “Is there a risk that the United States could lose its AAA credit rating? Yes or no?” - Tim Geithner: “No risk of that.”

....

Geithner April 2012:  “If we don't deal with these debt problems we are going to be Greece in two years” - Tim Geithner: “No risk of that.”

On Friday we learned that in 2011, the president paid a less than "fair" 20.5% in taxes on his joint income, substantially less than pretty much most Americans who listen to the now virtually daily sermons on the fairness of class warfare. It prompted us to wonder if the president has not been taking tax advice from the likes of the Treasury secretary, best known not for destroying the US economy, but for having some tax "underpayment" issues of his own, which however TurboTax was delighted to take the blame for. Which explains why now that the president may appear just somewhat disingenuous when discussing tax "fairness", it is up to the lackey who made tax evasion cool all over again, to defend the "fairness" of the Buffett Rule (shown graphically here) in today's episode of 60 Minutes. Oddly enough we were expecting Timmy to tell everyone to just use TurboTax... and some creative imagination when it comes to reporting income: he did not, instead he said "If we don’t push for things that make sense, then we’re not governing". No comment there.

But wait there's more: in a disastrous attempt to prevent the repeat of last August, when a 3 month showdown over the US debt limit ended up crashing the stock market, and culminated with the downgrade of America's AAA rating, Geithner, who previously said there is no risk of the US ever being downgraded (4 months before it was), urged Congress against repeating last year’s "very damaging" debate over the debt limit, adding that the economy is stronger than at any time in the past several years. We wonder though - very damaging to whom exactly: the liars who claim that 'America's economy is stronger than ever', courtesy of well over $2 trillion in debt in the past two years? Or that the debt ceiling will be breached all over again before the presidential election, confirming that the Treasury secretary can't even budget the worst case scenario one year in advance? Finally, since there will be a protracted debt ceiling fight, certainly during the tail end of the presidential campaign, is Geithner's plea really just to prevent Congress from making him into a running gag punchline for the second year in a row (all the while blaming the Bush presidency as usual)?

But the absolute kicker, and here we flashback to April 2011 when Timmy said there was "No risk" of a US downgrade, was Geithner using his favorite catchphrase, this time in response to whether the US may become Greece in two years: "No risk."

And scene.

From Bloomberg:

"It would be good for the country, if this time, they did it with less drama and less politics and less damage to the country than they did last summer,” Geithner said on NBC’s “Meet the Press” program today, referring to lawmakers’ reluctance to raise the debt ceiling until an 11th-hour agreement with the Obama administration in August.

Actually it would be far gooder for the country if the debt ceiling debate did not have to arise ever 6 months or so. But since the US economy is now terminally broken, and the Treasury generates more cash from debt issuance than from tax refunds, only idiots could possibly fall for the outgoing Treasury secretary's sad platitudes at this point.

Geithner has said the U.S. won’t hit its debt limit again until late in the year.

Which means the debt limit will be breached in a few short months as calculated here.

Americans generally should feel much more confident about the basic strength of the economy than they would have felt any time in the last four or five, six years,” Geithner said. Still, “it’s a very tough economy.”

Well if they were drinking nothing but the same hopium and KoolAid dispersed by the administration over the past 3 years, they would. Alas, they no longer do. And the reality is diametrically opposite.

When all else fails, blame it on Europe and evil, evil speculators who drive oil prices higher, but never on saintly stock speculators who do the same with equities:

“Obviously, we’ve got a lot of challenges ahead and some risks and uncertainty ahead,” Geithner said on ABC. Those risks include the European debt crisis and oil prices, he said.

Finally, for those who wonder why Geithner gets paid the big bucks:

Geithner, asked what the U.S. jobless rate will be on election day, told CBS that “if the economy continues to gradually strengthen like it’s been doing, then the unemployment rate will be lower.”

Actually, it is not the economy strengthening, it is the labor pool imploding. So yes, if civilian labor force ratio drops to 58% or less (a divergence that can be seen perfectly here), the unemployment rate will not only be lower, it will be negative - something which every treasury secretary is all too aware of in an election year.

Timmy "TurboTax" Geithner on tax fairness:

And the same soon to be employee of the Goldman-Morgan banker complex on the debt issue:

 

But the absolute punchline: Tim Geithner on whether there is a risk America could become Greece in two years: "No Risk"

And from April 2011, when asked if the US will be downgraded: just watch the first 15 seconds...

The only thing inquiring minds want to know is whether the dollar-drachma exchange rate be 1:1?

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Rahm's picture

"No Risk Of That."

 

Translation - Oh shit!  Time to worry!

Sudden Debt's picture

God Himself Couldn't Sink The Titanic!!

LetThemEatRand's picture

"This is far and away the strongest global economy I've seen in my business lifetime."  Hank Paulson, July 2007.

And if you think these and other outrageously wrong statements from Paulson and Geithner and fill in the blank are just error and not outright intentional lies, you really need to think about the red pill.   It's like the old saying "the devil's greatest trick was convincing the world he does not exist."  For these guys, the greatest trick is convincing most of the public that no one, least of all them, could see it coming.

SilverTree's picture

This was the highlght of my day! Thanks Tim!

ihedgemyhedges's picture

Apparently, Timmy took the blue pill..............

Pladizow's picture

"The LAST duty of a central banker is to tell the public the truth." - Alan Binder, FED Vice Chairman, Nightly Biz Report 1994.

knukles's picture

Hey, hey, hey. 
Hold on here.
lighten up a bit.

No responsible stateman would stoop to put a dumbshit lightweight into a senior economic post in the largest most important economy in the world, a position demanding immense gravitas and intellectual comfort.
Won't happen.
No Risk of That

Relax. 
Timmah's only channelling MDB's sense of humor for your Sunday afternoon spiritual enjoyment. 

Almost Solvent's picture

Forget war to get this shit fixed (as per last 10,000 years of fucked up human history)

 

With the 21st century medical advances, ZOMBIES will be the next best thing. 

 

Not the "brain eating" type, but a much more docile, vegan type. 

 

The "living" won't even have to work anymore, ZOMBIES will do everything for the living, and not bite us back.

 

The poor of Africa will be on par with the richest of London - a ZOMBIE for your 40 acres. And a ZOMBIE mule too. 

The Big Ching-aso's picture

 

 

Aw c'mon.    This was a comedy skit right?    Was this on SNL?

Michael's picture

The USA is getting dangerously close to complete and total economic collapse, as is the rest of the world.

May I suggest we organize local community groups to meet once a week or so to discuss how we, in our local communities, will prepare for the inevitable economic collapse, and come up with viable solutions to get us through the ruff times ahead. The federal government will not address the problem, they only make the outcome worse.  We prepare for civil disasters, it would also be prudent to prepare ourselves for an economic disaster as well.

12ToothAssassin's picture

No means yes and yes means no, now which is it??

wisefool's picture

I hope you live outside the USA because this post is about a SEC-TRES that does not know how to pay taxes.

He can not claim that 80,000 pages is too complex.

tooktheredpill's picture

as much as we all love to give TG a spanking, I don't know who we are fooling with this cheap shot. Apples and oranges.

vast-dom's picture

you'd have the scariest community groups -- fucking racist asswipe you'd lynch every nigger and kike and spic while blaming them for all your problems. yeah community groups sure man........

akak's picture

The dark, perverted and wildly pessimistic (not to mention historically inaccurate) social doommongering of the typical so-called "liberal" --- who, of course, knows better than those animalistic proles who are just waiting to kill each other [with their manifestly evil guns] without his wise and benevolent control --- never ceases to amuse, and disgust, me.

Michael's picture

Sheer poetry. Did you come up with that yourself?

Never the less, priceless.

What's wrong with organizing locally in your own community to prepare for the inevitable?

P.S.

The last thing I read from Vast-Dom, I gave him a thumbs up on.

akak's picture

No, it was just an off-the-cuff comment, but thanks if you appreciated it anyway.

Indeed, I think organizing locally is eminently rational, and may just save one's life one day.  I have made some tentative moves in that regard with a few neighbors as well.

Caviar Emptor's picture

Well what the hell do you htink a bankster's bitch is gonna say to the public?  

Bottom line, BIG Picture: we bailed out the banks starting from 2008 and as a result the US lost its AAA credit rating. 

That will be the judgement of history. 

knukles's picture

Yahoo!
Gold Star for the Man

akak's picture

Anyone else ever notice how Obamao speaks with his chin forward, while Beevis, er, Jeethner speaks with his forehead? 

And is it just I who feels this way, or does EVERY aspect of Jeethner's body language not just shriek "I AM LYING!"?

LongSoupLine's picture

That stupid fuck can't even tie his own laces in the morning, do his taxes with a brainless program and wipe his own ass, let alone know anything regarding running a country's treasury.

TheFourthStooge-ing's picture

.

That stupid fuck can't even tie his own laces in the morning,

...and I always thought he wore loafers because he liked the name.

do his taxes with a brainless program and wipe his own ass

No doubt about that. If he knew how to wipe his ass, dollars would be printed on absorbent, soft, two-ply paper instead of industrial strength single-ply linen.

 

Western's picture

Tim's not totally uncharming. Though still a shill and a traitor.

azusgm's picture

No, Tim's totally uncharming. Even seeing him on TV or in a video makes me feel wrong. My skin does not crawl as badly when I encounter a snake (the real kind at the farm).

Jena's picture

He's totally ruined Christmas elves for me.

vast-dom's picture

Paying fair progressive taxes = for fucking idiots exclusively!

Believing anyone in gov today = for fucking idiots exlusively!

Being outraged and not standing for this pathalogical lying = priceless!

 

Timmy, Obummer, Bernank, and all you deranged BPD whores et. al = GO FUCK YOURSELVES AND THEN GET OFF THE PLANET ASAP so that the rest of us may enjoy our precious productive lives.

 

PS "we were proud once because we believed our investing was shifting capital to usefel sectors and companies that used said capital to improve the world." today it's fuck you i want money whore dont give a fuck about companies or clients just want the Ferrari and status. Hey assholes let me fill you in on something: status without heart and ethics and values is just plain venal douchebaggery! 

TheGardener's picture

Gods themselves don`t want you to tell them their plans
nor have you name your endeavours by a competitor.

MeetTozter's picture

Half a century ago, the Ford Foundation was told to go have sex with itself - and we got Timothy Geithner

 

Half a century ago, USAID was told to go have sex with everyone - and we got Barak Obama.

cossack55's picture

At least he is consistent.

tallen's picture

Consistent with his stream of total bullshit.

Zero Govt's picture

yes verbal

Ive never heard anyone deliver so fast, ok lie so fast.. think it's called "channel stuffing"

...an ability taking the post of Treasury to new lows in the human sewer that is Govt

He'll retire, like Jean-Claude Trichet, leaving a complete and utter shambles behind

owensdrillin's picture

And it is all the previous administration's fault.

Wakanda's picture

Timmah sounds like a shyster who's been trotted out to sell a shit pile to a dubious but ignorant flock of sheeples.

Oh wait...

Zero Govt's picture

Yeah he was brilliant at the NY Fed as a regulator (cough) too

what a CV this public servants got, it's just one train wreck after another

AGuy's picture

just like tooltime Tim from "Home Improvement", except US Debt instead of tools!

 

taniquetil's picture

"If people keep leaving the labor force like they've been doing, then the unemployment rate will be lower."

 

Fixed that for you, buddy.

tony bonn's picture

i am sure that there are no problems which a turbo tax upgrade couldn't solve...

Hulk's picture

At last! An end date! April 2014. Let the countdown begin...