Tuesday, July 5, 2011

Buh Bye Timmah

Timmy Geithner wants out in the fall.
Geithner would like to leave mainly for personal reasons. His family is moving to New York in the fall, and his son is finishing his final year of high school.
Isn't it interesting that in less than one year five economic advisors in the Obama administration have resigned.

If the US economy were really in some sort of economic recovery (as the White House keeps trying to convince us), why would all of these stellar economists in the Obama administration be jumping ship?? You'd think they would want to bask in the credit of a stimulated recovering economy!

Well - guess again -
A report on the economic impact of the “stimulus,” released on Friday, July 1, provided evidence that President Obama’s economic “stimulus” did very little, if anything, to stimulate the economy, and a whole lot to stimulate the debt.
The council reports that, using “mainstream estimates of economic multipliers for the effects of fiscal stimulus” (which it describes as a “natural way to estimate the effects of” the legislation), the “stimulus” has added or saved just under 2.4 million jobs — whether private or public — at a cost (to date) of $666 billion. That’s a cost to taxpayers of $278,000 per job.
Americans seem to sense that this whole stimulus plan was bogus to begin with, and that these Keynesian advocates realize that this whole thing is going up in smoke. We are now worse off than when we started on the road to financing TARP and bailing out failed business models, etc. etc. Cash for Clunkers, and all of those other idiot schemes were useless and have put our children's future in jeopardy. They will have an enormous bill to pay... with money that will essentially be worth less. QE 1 - QE2, and the coming of QE3 will have devastating inflationary results. At some point we will be unable to kick the can down the road.

...and of course they want to raise the debt ceiling instead of reining in spending.
They would rather print even more money then put us on a true balanced budget.
When you cannot pay your credit card bills, do you ask for a higher credit limit and charge more to it?
If you are fiscally irresponsible - I suppose the answer is yes.
This is exactly what the Congress is doing.

So now, Timmy Geithner wants out.
He can join the list of other "economic advisor" rats that have jumped ship (along with the non economic advisors that have exited stage Left)

NAME: Peter Orszag
TITLE: White House Budget Director
REASON FOR DEPARTURE: Bored of job; spend time with fiancee (LOL)

NAME: Christina Romer
TITLE: Chair of the Council of Economic Advisers
REASON FOR DEPARTURE:Return to teaching.

DATE: September 2010
NAME: Larry Summers
TITLE: Director of the White House National Economic Council
REASON FOR DEPARTURE: Return to Harvard University as a professor.

DATE: January 2011
NAME: Paul Volcker
TITLE: Head of the President's Economic Recovery Advisory Board

DATE: June 2011
NAME: Austan Goolsbee
TITLE: Chairman of the President's Council of Economic Advisers
REASON FOR DEPARTURE:Returning to his tenured job as economics professor at the University of Chicago

It is apparent that no one wants to be around on Obama's economic team during the largest financial collapse in world history - which some claim is scheduled to begin this fall when the debt comes due and interestingly enough, the time frame when Geithner wants to get out of Dodge. The 500 billion ticking time bomb... is well... ticking.
If they raise the debt ceiling (which they will) it will only prolong the pain and make things much much worse.
The Ponzi scheme cannot last forever.
And when it does end, it will not be pretty.

Interesting reading here too