U.S. Treasury Secretary Timothy Geithner has given a nod of approval to China’s call for a global currency to replace the dollar, joining a chorus of international voices that include Russia, a United Nations panel, billionaire investor George Soros, and Kazakhstan — among others. Geithner’s remarks favoring the China proposal, delivered at a meeting of the Council on Foreign Relations (CFR) on March 25, surprised many, as the previous day both he and President Obama gave statements disapproving of any move away from the U.S. dollar as the world’s reserve currency.
It’s official: the Obama administration intends to nationalize the entire financial sector. If there were any lingering doubts as to the intentions of President Barack Obama and Treasury Secretary Timothy Geithner, they were dispelled by today’s announcement detailing the Treasury Department’s new “framework for regulatory reform.”
President Barack Obama is in the middle of his national tour to convince the American public that “we’re doing everything we can to reduce that deficit.” President Obama has been on The Tonight Show, 60 Minutes, held town meetings in California and conducted the March 24 prime-time press conference on the economy. The problem is, he revealed in that March 24 press conference, that “everything” now means the same as “nothing.”
The American people are understandably outraged to learn that the American International Group (AIG), a corporate giant that has received almost $200 billion in total TARP/TALF funding, has recently paid $165 million in retention bonuses to its top executives. The fact that these payments were made to fulfill already-existing contractual obligations and that most of the recipients have reportedly indicated a willingness to return the money has not done much to quell the public anger. After all, a company in such dire financial straits to require vast infusions of federal bailout funds should not be giving its employees millions of dollars in bonuses, period.
The Obama administration’s long-awaited proposal to remove so-called “toxic” mortgage-backed assets from U.S. banks has finally been unveiled, to huzzahs across the globe. Stocks from Tokyo to New York rallied as investors expressed relief that finally, somehow, the U.S. government was going to take care of the problem. But just what does Treasury Secretary Timothy Geithner intend to do, precisely?