Tim Geithner Muses On Fed Independence, Redefines "Credibility"

Watch him squirm!


U.S. Treasury Secretary Timothy F. Geithner said the Obama administration would oppose any effort to strip the Federal Reserve of its mandate to pursue full employment and warned Republicans against politicizing the central bank.

“It is very important to keep politics out of monetary policy,” Geithner said in an interview airing on Bloomberg Television’s “Political Capital with Al Hunt” this weekend. “You want to be very careful not to take steps that hurt our credibility.”

Wait a second, bailing out Bear Stearns but allowing Lehman to die didn't hurt their credibility? What about that whole thing with Crooked Pinky Hank Paulson going in front of Congress begging for TARP claiming that they'd use the money to buy crap assets and then turning around to use it as a bailout slush fund for suffering banks? Or how about that time the Fed decided to buy $300 billion in Treasurys and then decided that wasn't enough and went for $600 billion instead? None of that hurt our credibility but somehow stripping the Fed of a duty it has failed miserably in anyway would? Please. WC Varones shares my sentiment on this issue, it's a little late to start talking about politicizing the Fed now.

Timmy is confused as to the actual definition of credibility but that shouldn't be shocking to anyone familiar with his sleazy hypocrite ass. After all, Timmy is the one who was president of the New York Fed as the bailout checks went out, "credibility" is the last word one might pluck from the dictionary when describing our esteemed Treasury Secretary.

Little Timmy met with several House GOP members last week, presumably trying to charm them into seeing his viewpoint and/or not making him look like a complete and total tool (as if he needs any help on that).

Fed Governor Daniel Tarullo felt compelled to point out last week that though the Fed is allegedly independent from the political whims of the moment (as in "Hey, Ben, it's Barack. Can you guys do me a favor and print me up $600 billion or so? We're a little low on cash and those fucking Chinese aren't loaning us any more money, just tell them it's because the economy sucks or something."), that doesn't translate into being able to do whatever they want. If you buy that, I also have a bridge to sell you and sorry, payment in gold only.

Dow Jones:

The Federal Reserve's monetary policy decisions are rightly insulated from short-term political pressure, but the U.S. central bank is not completely free to do what it wants, a top Fed official said Friday.

Fed Governor Daniel Tarullo said the U.S. has a wise tradition of keeping the central bank's decision on interest rates insulated from the poltics of the moment. But he underlined it's the "politics of the moment" from which the decisions are insulated--not from basic policy decisions taken by Congress.

"It's not as if we're just independent in the sense that we're out there and we can kind of take whatever policies we want," Tarullo said.

See, I think that would imply that Congress has any idea what it is doing. I gather that they don't even realize they ultimately have the power to kill the Fed if it comes to that and why would they? Bernanke is the one who signs all the checks at the end of the day, with few of those Congressional asshats smart enough to realize that we do, in fact, have to pay for all of this in the end.

Geithner is afraid that if Congress starts going for the Fed's throat, even on an insignificant issue like redefining their alleged dual mandate, that it will dawn on many of them that our central bank has been robbing us blind for nearly 100 years under the guise of monetary policy. A criminal will do anything to make sure his crimes are not uncovered, until he gets sloppy and one day leaves a bloody footprint leading from the scene of the crime.

Seeing as how Geithner practically signed a lot of those 2008 bailout checks himself, it makes sense that he'd be extra paranoid to have anyone sniffing around at his former place of employment.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


W.C. Varones said...

Don't politicize my monetizer, bitchez!

Anonymous said...

Is it just me or doesn’t having the Federal Reserve pursue full employment as one of its mandates do more to politicize the Federal Reserve and not less? In fact, I think any mandate politicizes the Fed to one degree or another. I suspect that the more you add (mandates), the more you politicize. To my mind, the Fed’s sole focus should be to keep prices stable OR to keep the economy growing (if the domestic economy is growing then jobs will happen – if you put a little cow shit, water and sunshine on your tomato vines the fruit will take care of itself). Were the Fed’s mandate changed to strive ONLY for stability in prices and on the other side of the equation, Congress made to strive for full employment, you might get a little more balance. Oh, but wait, then Congress would actually have to perform and achieve results or risk losing elections, right? (snicker) Congress is too full of morons and histrionic blow-hards and has been for a while. They’ve “off-shored” one of their own responsibilities and put it in the Fed’s lap (just my own opinion) – but they do represent we the people, right? But, if you believe in the phrase "the cure for high prices is ..... high prices" and you believe it should be the job of Congress to create an environment in which the domestic economy can grow (and thus jobs) then I guess that wouldn't leave too much left for the Fed to do, huh? Just spitballin' and idea or two...

Graybeard said...

“It is very important to keep politics out of monetary policy,” Geithner said...

HAHAHahahahaha.. please stop! Bwahahahahhah... come on, Timmy. Since when? Politics has always been part of monetary policy.

This is DC Shorthand. Whenever a politician accuses another politician of playing politics, it's shorthand for "they don't agree with me". If they play politics, but agree with you, that's different and doesn't merit comment.