Posted on 09/12/2010 10:53:34 PM PDT by blam
Tim Geithner Warns: The US Is At Risk Of A 1930s Repeat
Joe Weisenthal
Sep. 12, 2010, 9:11 PM
If the government become paralyzed -- as is arguably the case already, and is clearly a serious risk should the GOP take over -- the US risks a 1930s-like scenario. At least according to Tim Geithner.
That's the standout quote from an interview in the WSJ:
[The] typical error most countries make coming out of a financial crisis is they shift too quickly to premature restraint. You saw that in the United States in the 30s, you saw that in Japan in the 90s. It is very important for us to avoid that mistake. If the government does nothing going forward, then the impact of policy in Washington will shift from supporting economic growth to hurting economic growth.
As for the deficits question:
"We don't have unlimited resources," Mr. Geithner said. "We just don't think it would be responsible for this country, given the size of our future deficits, and given the substantial burden the middle class has been bearing over the past decade in particular, to go out and borrow $700 billion from our children so we can sustain those Bush tax cuts that only go to the wealthiest 2% of Americans."
Read the whole thing >
[snip]
(Excerpt) Read more at businessinsider.com ...
“You are right but, Obama is such a boob, a dolt, an imbecile, no matter what they do I don’t see him ever being elected to anything ever again. His next stop is the U.N.”
Yep, I’ve been saying since before he won the election that he sees the WH as a calling card to his next gig, probably the UN. This is just an inconvenient desk job to get there.
I agree it’s about the only job he wants and “is suited for” - to finally be leading citizen of the world. (It’s either that, or a job in the infomercial industry.) :)
The brilliant Tim Geithner? The only one qualified to run the economy? Wow
Hah-hahaha! According to the tax-cheat himself.
In other news- Tim Geithner says. "Taxes are for thee, and not for me."
Is this little Timmy the tax cheat and swindler, who brought America billions in bailouts using Other People’s Money to play with for enrichment of the political class and friends of government.
The statists used the same "if the government does nothing the economy is doomed" threat in regard to the depression of 1920.
Harding and Coolidge knew the truth: more government spending and interference would only serve to worsen and prolong the depression. (This was proven in the 1930's).
Little Timmy needs to brush up on the history on the depression of 1920. The Depression in America in 1920 was in some ways bigger in scope and deeper than the Depression of the 1930s. However, it was solved because federal spending was cut in half and income tax rates were cut across the board (the top rate from 73% to 25%, and the bottom rate from 25% to 5%).
The economy not only quickly recovered with the reduction of government spending and tax cuts, but thrived so much that it led to the Roaring '20's.
The government cannot be the solution because it is the problem. It needs to get the h*ll out of the way and begin with cutting taxes and deficit spending. Unfortunately, the leftist politicians and bureaucrats are adhering to the Cloward Piven, FDR, Keynesian and Karl Marx play books. It won't be pretty.
In the 20s, the nation was reaping the benefits of the enormous capital inflow into the then-new electric utilities. That generated huge increases in productivity, raising everybody’s living standard. The same thing happened in the 90s with the Internet.
What’s the next big wave of innovation that will save us? It isn’t obvious this time around.
Anyone who did not vote for TARP! Cantor did. Pence didn’t.
VERY funny. We’re there now. The administration is doing what passes for it’s best to “spin” the facts about it, especially by acts like releasing numbers, and then “revising” them later. They are, collectively and completely, untrustworthy. Heck, read The Great Depression, A Diary, by Benjamin Roth. You’ll find it’s just exactly like what we have at the moment, aside from one thing: the monetary problem we have now is roughly twice as large as it was then. Read Karl Denninger’s website, market-ticker. The only thing Mr. Geithner seems to be able to say truthfully is his name, and I haven’t had the chance to check that on his license, have you?
I'd take another great depression over tyranny any day. In many ways I think that is the difference between a free man and a progressive liberal. We're not afraid of being broke on our *ss.
Why?
Because as truly free men we can make our way from no matter where we start.
Because our greatest leaps forward as a free nation, came following our darkest hours.
Do not count on November to save our freedom. It is not going to live up to that hype and to believe so is delusional.
---------------------------------------
'Hope and Change' turned into 'Smoke and Mirrors'
Obama is doing just what he planned with the economy. His goals are in sight. Everyone will either be employed by the government; dependent on the government or a lamp shade.
Liar = Obama.
Cheater = Feds.
Thief = Congress.
Con artist = Piss-Stream Media.
Throw 'em all out.
RECOVERY THUGS
1) DRASTICALLY simplify the income tax and reduce its maximum rate to 17%--essentially what Steve Forbes proposed in a book written in 2005. Our current system costs US$304 BILLION per year in compliance costs and drove jobs, factories, corporate headquarters and possibly as high as US$16 TRILLION in American-owned liquid assets out of the USA for income tax avoidance reasons--sheer economic insanity.
2) Should have just re-imposed the 1933 Glass-Steagall Act to "firewall" bank assets from the ups and downs of the stock market. Thanks to Glass-Steagall, the US economy rode out the 1987 stock market crash and 1997-1999 Asian financial crisis rather easily because bank assets became the "economic back stop" to prevent a potential major erosion of the US economy.
3) Start auditing EVERY Federal, state and local government agency for bureaucratic overlap and agency bloat, and use the results to cut down the size of government at minimum 25-30%. This will free up private funds for other uses (and allow the government to lower tax rates even further since you don't need so much taxes to keep government functioning).
4) Actually use the Sherman and Clayton Antitrust Acts or replace both of them with a new one designed for today's economy in order to prevent a too big to fail situation like what happened in 2008 or too much concentration of power into only a few small firms (e.g., do you really want Walmart to wield this much merchandising influence or Apple's recent arrogance?).
5) Start to look at the possibility of a ten-year plan to phase out the Federal Reserve note fiat currency with a new US dollar backed by gold, silver, platinum, palladium, copper and nickel--the most common metals used for bullion blocks and coins used in monetary exchange historically. Fiat currencies--because of their dependence of "faith in government,"--tend to lose value over time, as evidenced by the declining value of the US dollar since 1971 and the terrifying bouts of hyperinflation in Germany in the early 1920's and the high inflation that plagued South America for much of the latter half of the 20th Century.
Great proposals...unfortunately they would require work...and Timmy’s trust fund pays out the same ... he gets up at 8:00am...plays tennis for an our, wanders over to the office then heads for the White House Cabinet meeting at 11:30, then lunch at the club until 2:30...and oh its time for golf.
None of the Rinocratic Oligarchy NEED any of these reforms.They’re comfortable...why would they do anything to upset the status quo?!!
....thanks largely to democrats everywhere.
Funny thing. You repeat FDR’s fascist intrusions and distortions of the market, seizures of property, debasement of currency, curtailment of liberties and get the same results. Who would have thought it?!
Hugely appropriate analogy. You just nailed it in the first reply.
This is a good time to recommend Amity Schlaes’ book The Forgotten Man: A New History of the Great Depression. It’s amazing the historical parallels we are seeing.
This is the line they will be using the next 3 weeks. Get used to it.
True leaders don’t compromise...they lead.
I guess that rules out Boehner. Oh, I forgot, he is a member of the “go along to get along” party.
I have watched over many years RINOs caving in and compromising with the enemy (Marxists, progressives, gays, Fascists, communists...etc) on almost every issue presented...and it comes back to bite them every time.
It’s time we vote in leaders, those who will sacrifice their political wealth to truly represent the people.
I’m sorry, but how is a ‘possum named Lassie going to help Timmy?
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