This is the response from US Treasury Secretary Tim Geithner to the recent unrest in the Middle East causing oil prices to spike over $100.
U.S. Treasury Secretary Timothy F. Geithner said the economic recovery has put the world on a better footing to withstand the increase in oil prices caused by turmoil in the Middle East.
“The economy is in a much stronger position to handle” rising oil prices, Geithner said today during a Bloomberg Breakfast in Washington. “Central banks have a lot of experience in managing these things.”
Geithner also said the U.S. financial system is in better shape than before the recession and is able to provide the funding needed for the expansion.
Right…just like they handled the global financial meltdown two years ago.
Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson both acknowledged problems in the U.S. economy Thursday, but both said they believe the nation will avoid falling into recession.
The two made their comments at a hearing before the Senate Banking Committee about the economy. Their testimony comes in the wake of troubling economic readings that have raised recession fears on Wall Street.
But he (Bernanke) added he’s not worried about bank failures because he thinks banks entered the current downturn with sufficient capital and have been able to raise additional funds.
Paulson said the economy “is fundamentally strong, diverse and resilient“
Yeah…we all heard the same thing prior to the worse economic collapse since the depression that led to world war. Not realizing (or caring) that the internet makes it possible to easily look back on what the geniuses said just 2 years ago, however, Geithner doubles down on the “don’t worry, be happy” meme.
“The core of the American financial system is in a much stronger position than it was before the crisis,” he said. “We’re way ahead of any other major economy.”
Well, indeed, they are way ahead in terms of inflationary money printing which, despite their claims of it having no effect, is causing global food and commodity inflation.
Of course, Bernanke also claimed that he was not monetizing even as he has pumped up the equities markets with his finger glued to the print button.
So, who do we believe, the lying Bernanke or our own lying eyes?
Meanwhile, another member of that august body that we all know as the Fed, has made these comments.
The Fed mutiny has arrived:
- HOENIG SAYS U.S. HAS `DEEPLY’ UNDERMINED FREE-MARKET CAPITALISM
- HOENIG WARNS OF ESCALATING SERIES OF CRISES WITH RISING COSTS
- HOENIG: LARGE FINANCIAL FIRMS CAN EXPECT BAILOUTS IN FUTURE
- HOENIG SAYS BIG FINANCIAL FIRMS MUST NOT HOLD ECONOMY `HOSTAGE’
- HOENIG: LARGE FIRMS WERE `GAMING’ CAPITAL STANDARDS PRE-CRISIS
- HOENIG:BIG FIRMS `HAVE SIGNIFICANT INCENTIVES’ TO INCREASE RISK
- HOENIG: TOO-BIG-TO-FAIL FIRMS POSE `GREATEST RISK’ TO ECONOMY
- HOENIG SAYS BIG FINANCIAL FIRMS ENJOY `HUGE’ FUNDING ADVANTAGE
And the last one:
- FED’S HOENIG SAYS `HISTORY IS ON MY SIDE’
The question we have, as it relates to Japan, is what Gov Shirakawa knows about these things. Is Bernanke lying to him as well or is Shirakawa lying to the Japanese people about what is going on in the world of central banks? And we wonder to whom Shirakawa owes his allegiance, his fellow Japanese citizens or the club known as central bankers, which club will soon have the reputation of Aum Shinrikyo (Aleph) when the full effects of these policies are made manifest on the Japanese population?