China's Pick for Fed Chair 2010? Certainly Not Bernanke
We saw Bernanke on 60 Minutes and perhaps you, like me, thought "huh. Well this is strange."
Then we saw him in a real-life town hall (before ObamaCare rewrote the definition of the word) and again, here's to hoping your radar went up at that point to ask yourself what might compel the 2nd most powerful man in the world to break his organization's tradition of secrecy to appear before the unwashed masses to plead his case.
What Bernanke really needs is a defense attorney to convince the jury that he's not guilty.
Worse for our little bearded friend, he probably shouldn't expect Obama and Geithner to have his back.
The latest nationally advertised but unrecognized mythology is very convenient, since a USDollar crisis has begun. Political and intellectual cover is needed. The USEconomy would benefit from a lower USDollar, due to a quantum jump in export trade. A lower US$ exchange rate would indeed benefit the USEconomy in general, and US corporations in particular, provided the nation had not shipped a significant portion of its industrial base overseas. This aint the 1970 decade. It did so to capture the low cost of foreign labor, without thought given to the lost capital, lost wages, growing debt, and lost sovereignty from foreign creditor dominance. The US pursued financial dominance, and finally failed as Mother Nature wielded the backside of the Inflation Sword. The Chinese now dictate many key policies. They probably ordered President Obama not to renew Bernanke as USFed Chairman. After his appearance three years ago, lecturing the Chinese elite in Beijing, he was told never to return, EVER, deemed persona non-grata. Lost sovereignty has no good side!
I agree. Sort of. The Chinese don't need to order President Obama to do such a thing, why do you think we have Geithner on the team? Certainly it isn't for his economic expertise! That "useless" degree in Asian studies or whatever made-up qualification that was touted in the face of his Turbo Tax "problems" upon his nomination for Treasury Secretary? Well it seems all-too-clear now how that might make him the best man for the job. One just has to wonder what the administration was planning when it realized as much.
In November of last year, ABC News even went far enough to call Geithy and Obama "brothers separated at birth":
Stocks soared late this afternoon on reports that Tim Geithner, president of the Federal Reserve Bank of New York, will be the next secretary of the Treasury.
If you examine the life story of Geithner you may think he and President-elect Barack Obama are brothers, separated at birth.
That similarity could be the tipping point that gets Geithner the nomination as the next treasury secretary and that leads the nation through the worst financial crisis since the Great Depression
The parallels between Geithner's story and Obama's are uncanny. Both men are 47 years old and spent part of their youth living abroad. Both have succeeded despite unusual backgrounds. Both men have developed a cadre of powerful and well-connected people who provide advice and guidance. And both men like the occasional pickup basketball game.
Just as Obama lived for a time overseas, so did Geithner. His father worked for the U.S. Agency for International Development and then for the Ford Foundation where he held several positions throughout Asia. Geithner attended elementary school in New Delhi and high school at the International School in Bangkok.
Where does that leave Bernanke? Standing on the outer circle hoping he's called back to the team?
Since we have established that Geithner is good for nothing except for his exotically-trained Asian tongue (hello, this should be painfully clear), and that Bernanke is persona non grata in China (you don't want to piss them off, you know), we can therefore do the math and understand that traders are foolish to think Bernanke might have a snowball's chance in hell at a second term.
Besides, China needs a real jerk off, er, stimulus-inclined Fed Chairman to furiously blow bigger bubbles if they're going to unload all of that defective Chinese drywall and boatloads of crap toys.
Paging Dr Summers? Put down the chili cheese fries and pick up the white courtesy phone, please.