The United States must live within its means once its economy recovers if it is to preserve global confidence in the U.S. dollar's status, Treasury Secretary Timothy Geithner (pictured left) said on Friday. The comments came as the Obama administration reported a record U.S. budget deficit for the fiscal year ended September of $1.4 trillion. At 10 percent of gross domestic product, it was the biggest U.S. fiscal shortfall since World War Two. Rescuing the economy and some of the country's biggest banks from the worst recession since the Great Depression took a toll on U.S. finances, and the White House has forecast deficits of more than $1 trillion through fiscal 2011. "Future deficits are too high, and the president is committed to working with Congress to bring them down to a sustainable level as the economy recovers," Geithner said in a statement accompanying the fiscal data. Separately, White House economic adviser Lawrence Summers said financial firms that helped precipitate two years of economic crisis are going to have to bow to stiffer oversight of their activities to prevent it happening again. Geithner and other policymakers will discuss the U.S. economic and budget outlook, and prospects for financial regulatory reform, at the Reuters Washington Summit on Oct. 19-21. – Yahoo Biz
Dominant Social Theme: Responsible heads are concerned.
Free-Market Analysis: The idea that the Obama administration is concerned about US fiscal solvency is somewhat risible in our humble opinion. We have pointed out recently that the British powers-that-be have been busily reducing Britain to a smoking ruin over the past half century, and we believe the American elite is engaged in the same process. We have read that the Obama administration has added US$3 TRILLION to the US deficit in the past NINE MONTHS, so we submit that the process of insolvency is well underway.
Of course it cannot be admitted to, and thus Geithner is trotted out once again, like squealer from Animal Farm, to speak of the administration's concern over deficit spending and over the prospect of American insolvency generally. It is not an entirely fanciful prospect in fact. Drudge has had a post on its site linking to an article from the Chinese pointing out that the world "cannot afford" to continue to purchase American debt. But in fact, from our perspective, this is only a milestone on the way to the full bankruptcy of the republic.
What could Geithner say if he were entirely truthful about what's going on? How about this: "For at least a century or more, a small Anglo-American cartel of fabulously rich families, industrialists and bankers have been engaged in systematically looting countries of their origin. The goal is to impoverish these countries in the name of equality and progressivism and to then use these prostrate entities as a launching pad for a kind of globalization that will bestow on the world's billions the policies that have proven so effective at home. The goal is wealth, power and ultimately control of the world's resources and its populations. The methodologies are fear, authoritarianism, warfare and promotional propaganda. Have a nice day!"
NOTED: Overall, 44% of voters say they at least somewhat approve of President Barack Obama's performance – [but] fifty-six percent (56%) now disapprove. The Presidential Approval Index is calculated by subtracting the number who Strongly Disapprove from the number who Strongly Approve. One bright spot in the numbers for the President is that 51% of voters still say former President George W. Bush is more to blame for the nation's economic woes. Just 41% point the finger of blame at the current President. (Rasmussen Reports)
We don't really expect Geithner ever to say the above (or even to wish us a nice day). But we do think it is a cogent-enough summary that explains the insanity of what is going on. The topmost elite of these countries are not patriots, not wise men, not entrepreneurs, not businesspeople. They are the most ruthless kind of mercantilist mercenaries. They will use any private or public lever (preferably together) to impoverish and make miserable their countrymen. The remedy lays in the private marketplace and in private, "honest" money – gold and silver, which is impervious to the manipulations of the fiat money that is driving substantial portions of a once-vibrant middle class into ruin.