GEITHNER---THE NEW US FULL-ECONOMIC MASSAGE THERAPIST---HAPPY DAYS ARE (ALMOST) HERE AGAIN!
Our Secretary of Treasury Tim Geithner is in China having a gay old time toasting and being toasted. He wants the Chinese to like us so they will continue to enslave us by buying our massive and burgeoning piles of debt---aka our bonds.
Among many other things Geithner is supposed to be going around China talking up the U S economy and the U S dollar---so China won't lose any more confidence in our government than it already has.
Let's see what Geithner said today on the first day of his magical mystery tour in Beijing:
Facing skeptical students at China's prestigious Peking University, Geithner said that once the current recession and financial crisis are over, the administration will get America's fiscal deficit in order.
"As we recover from this unprecedented crisis, we will cut our fiscal deficit, we will eliminate the extraordinary government support that we have put in place to overcome the crisis," Geithner said in a speech to students at the university, which Geithner attended nearly three decades ago.
Needless to say laughter erupted among Chinese students in the audience who were listening to Geithner make this absurd speech with a straight face!
To review: Geithner is saying once this crisis is over the Obama administration will cut our deficit spending!! But wait a minute: Last week in Hollywood, our reckless spending president Obama said, "You ain't seen nothing yet!" The meaning is that Mr. Obama intends to keep spending towards his political agenda even if he brings down the country.
From what I see and hear, Obama means what he says, We ain't seen nothing yet! They have no intention of stopping their reckless spending binge.
So Geithner is in China saying that once the Obama administration has spent us into oblivion, they'll stop and make it all well again. (Bring out the violins!)
The Chinese clapped, smiled, bowed and scraped and then all got out the SAKE and toasted a smiling guy!
For the record, Team Obama has increased the federal deficit four, FOUR, times over what it was last year under Bush. Four times since last year! The Chinese are understandably concerned.
Even as Obama proudly announces there's no end to his lavish spending in sight. Then he has the gall to send his Treasury Secretary to China to give a gigantic full-body economic massage: Tell em not to believe what they see and hear, but believe what you tell them! And don't forget to smile!
What do you suppose would be an indication of Geithner's effectiveness today after speaking platitudes to the lChinese people they/we obviously take for such fools?
The short answer: first, the long term bond ETF (TLT) would shoot up today; and second, the long dollar ETF (UUP) would also shoot up also and certainly stabilize after unprecedented losses over the past few months.
The result: Both the UUP (long US dollar)---and the 20-year US bond ETF (TLT) continued to sink precipitously to the south.
So, Tim, so far, your Chinese SAKE friends aren't buying it. Maybe tomorrow they'll bite. Maybe they just want a game of pick-up basketball with all you tall guys. Maybe they just want to get out their Polaroid cameras and snap some pics for their photo albums. But right now, they're not buying your magical mystery fiscal charm tour.
Neither are we.
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