Weekend Wars: Tim&Ben vs. The World
Weekend wars returns this week with a propagandist homage to the "good cop, bad cop" routine.
As Jorgé notably summarized a few days ago , it seems as though
are blowing for Timothy Geithner, but is that really such a bad thing for the U.S. overall? Is it bad for TG himself?One thing I notice from trotting the globe is America's macroeconomic functional independence from the identity cult. The methods with which the smoke and mirrors our corporate and legislative magi puff on the public... always somehow mysteriously work out in the end.
What's that you say, Midas? Independence...from the identity cult??!!! The place that is obsessed with what a celebrity had for dinner or wore to go potty? Yep, that place...the bumbling idiot in the public eye but the shrewd card shark at the gaming table.
Our competition is the emerging market. Quick, nimble, youthful and in a seemingly eternal growth phase. We, the old, decrepit and sloth ridden behemoth dragging its feet to the ATM, then Wallmart and back to the McMansion. Maybe we no longer know how to compete with the ambitious and hungry, but we sure do seem to know how to sabotage and clip the wings off quicker birds.
You don't want to curtail your economic policies to our demands? We'll just
and overheat your economy.I must admit it...I was wrong... QE 2 is wonderful, amazing, stupendous. It won't improve our economy, but it will just ruin the lives of all our competition. What is better, after all, than improving your house by slaughtering your neighbors?
In the end, the only one that will suffer is a Federal Reserve lifer, who may or may not wind up atop the gilded tower at Goldman as his "punishment". Naturally, while "bad cop" Geithner gets "dressed down" by the emerging market elite, good cop (snicker) Bernanke waxes poetic about toilet paper scribbles during a rapid Keynesian projectile vomiting episode.
Now tell me, my fine simians...do you really think South Korea, the BRICs or anybody else for that matter has the ability to battle with an economic machine with a Hollywood brain and the vile destructive ability of your mother-in-law? What Timmy and Bennie are pulling on the opposition's economic brain trusts trumps Sipowicz and Simone or Mel Gibson and Danny Glover on their best day.
Talk about flipping perps...
I dare you to name the opponent ready to step into the ring against the Bernanke/Geithner freak show tag team...
Time for some good old fashioned primitive nationalism, with an elitist twist of the moustache.
Ding, ding...let's all jump in the ring.
You know, I am pretty much anti Krugman, but he was on CNN this morning and I actually agreed with him. He said until Americans pay off their debt our economy will continue to be sluggish. Pretty common sense if you ask me.
We took from C1 and spent on C0. Basic finance theory. We overspent and borrowed from future spending and savings to increase current spending. People need to pay off their charge cards, get right side up with their houses, get their 401(k)'s back to where they should be and then they will spend again.
What goes up must come down. Not in America.
In response, Mr. Geithner stressed that strong U.S. growth is critical to the global economy. The Treasury Secretary said that the capital flows being seen are in many respects "very positive" for emerging economies. "There are risks and challenges with that, but most countries would trade those challenges for any of the challenges that we've faced over the last three years."
This is what gets me. US growth is not nearly as critical to the global economy as it was in years passed. I'd go as far to say that the world would go on just fine without any US growth for the next ten years (which is likely to happen IMO). Fact is, the only reason I would be bullish for any reason right now is because the world economy (outside the developed world) is on a tear and these markets will be hot even without QE 2 (this is definitely going to fuel the flames).
This is really an interesting concept. Looking at QE2 from this perspective makes it seem as if we are using it as a way to destroy every high-growth nation that threatens our competitiveness. I guess it is a privilege we have since we are the most dominant military force in the world (which gives us reserve currency status) and still are number one in GDP.
These are some interesting times. We will see how this plays out within the next couple of years.
It was a good ride while it lasted. Time to pack and move on to the next Buffalo to leach on.
It's the Fed Keepers against the Fed Reapers in this battle where the winner takes all in the quest for world domination.
The Federal Fighters of Bernanke/Geithner are on a ringer with their latest victory in QE2 and thirsting for more easy blood.
Faux Femme Fatales duo of Angle/Palin are recovering from defeats in 2008 and 2010 but are still in the hunt for total Fed annihilation... Mama Grizzly style.
You can view this epic fight live only on Pay-Per-View.
$49.99 (outrageous tax rate not included)
Double post. Please delete.
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