Obama & His Demolition Team

Geithner, Obama and Summers

It is obvious that Obama and his economic demolition team are either a very crafty group of sinister individuals who work for Wall Street finance, or a completely inept group of simpletons not possessing any knowledge of basic economics. The three blind mice, Larry Summers, Timothy Geithner and Ben Bernanke, have a long history of big mistakes. However, President Obama made a bigger mistake by, not only keeping them in public administrative positions, but promoting them. This country should not believe a word that crosses their forked tongues because they have never shown a reason to be trusted.

Larry Summers made his debut under the Clinton administration. He served as Deputy Secretary of the Treasury under another financial tick by the name of Robert Rubin. Robert Rubin worked for Goldman Sachs for 26 years before he became Secretary of the Treasury. While in office Rubin spent a great deal of time voicing his opposition to the credit derivative regulations proposed by the head of the Commodity Futures Trading Commission Brooksley Born. This lack of regulation played a major role in the economic disaster of 2007. After leaving public office Rubin worked eight years for Citigroup, during which time he accrued $126 million in wages. When the position of Secretary of the Treasury opened up, Larry Summers was appointed. His economic ideas were not hard to predict. Summers was a vehement proponent of the deregulations on commercial banking, insurance and investment introduced in the Gramm-Leach-Bliley act. If this deregulatory act had not been passed it is hard to imagine any scenario where the housing bubble would have been as big as it was before it popped, if it had popped at all. This is not a man that should be anywhere near a position which would influence the economy, much less head of Obama's White House Economic Council.

The current Secretary of the Treasury, Timothy Geithner, also served in the Rubin regime. Geithner eventually worked his way up to be president of the New York Federal Reserve in 2003. He stayed in this position until heading up the Treasury. During this time the housing bubble obviously burst. Many Investors, banks, and mortgage owners lost an overwhelming amount of money because of the deregulations which he supported. The heads of these banks had lent mortgages to people which they knew would not be able to pay them back. At this point the banks sold a fair amount of that debt to investors, and insured the rest with AIG to make a profit when the homeowners went into default. Before the bubble burst these investment banks and AIG reported huge profits enabling the company to shower the executives with incredibly large bonuses. When the pop eventually rang out the money had already been made at the expense of many millions of homeowners, banks, and investors. Timothy Geithner had the New York Fed purchase this toxic debt from these banks which were supposedly too big to fail, leaving investors and homeowners alone in the cold. The direct actions of the banks which were bailed out destroyed trillions of dollars built up in the housing sector, yet Obama supposedly has faith in Geithner.

After the housing bubble burst Ben Bernanke pumped money back into the economy as head of the Federal Reserve. This money went directly to the finance sector of the economy. It raised the GDP, however it did nothing to help the homeowners or the unemployment rate. Instead, it gave banks more leverage to lend money to those very homeowners and unemployed which should have received help in the first place, thus siphoning off more wealth from the rest of the economy. Bernanke is of course still in same position.

There is no debt crisis. Timothy Geithner has the power to issue a platinum coin of any denomination through the mint, sell it to the Federal Reserve, and have that amount credited to a Treasury account. He could also explain that the way our currency is created is through debt. He knows that if the debt is lowered it will remove money from the economy which will have severe detrimental effects on the economy. He could also explain that interest rates on the debt are very low, and that the debt is not the highest it has ever been in relation to the GDP. He could explain that there is a private debt crisis devastating the economy, and that steps need to be taken to solve that problem. However, he continues to tell the country that the national debt must be lowered for the sake of economy. The real reason why he is pushing for a deficit reduction is to remove the social saftey nets which support many poor Americans. Without these social programs people will be forced to borrow more and more money, further increasing the profits of the financial sector for which he works.

Ben Bernanke also has the tools to buy Congress more time to figure out how to best solve this problem without plunging the country into ruin. The Federal Reserve is now in possession of $1.6 trillion worth of Treasury Bonds because of the recent quantitative easing program. The Federal Reserve has no reason to ever cash these bonds in because it is the facility which creates our currency in the first place. It literally has an infinite amount of money creating power. Bernanke should declare that this debt does not have to be paid back to the Federal Reserve, buying at least six more months to properly discuss monetary reform. However, Bernanke will never do this because he is also a puppet of finance. Furthermore, this will never be done because the Federal Reserve is a private organization of member banks which the United States government has no control over. This fact is apparent because it does not make any sense that one part of the government, the Treasury, would owe $1.6 trillion to another part of the government, the Federal Reserve.

Obama is also a puppet of the financial industries. His silver tongue, political party, good looks and ethnic background make him an amazing conductor of the economic symphony which his cabinet has written. When he says jump the country asks how high. Do not listen to him or his horrible team of white collar criminals about anything, especially national debt reduction. It is evident from their track record that the only thing they are out to get is money and control.