August 7, 2011

Timothy Geithner, you are WRONG!

Three times Timothy Geithner strays from fact into propaganda in his attempt at lambasting Standard and Poors on their downgrade of the United States' AAA credit rating.  Of course it's no surprise that Geithner got his talking points wrong.  He was wrong on the Keynesian solution to the recession, he was wrong on his assertion that there would be no downgrade and he looks bad for both.  Of course he's angry and not responding rationally, but that doesn't excuse his 'wrongness'.

CNBC has the Geithner talking points.
Treasury Secretary Timothy Geithner ripped Standard & Poor's two days after the ratings agency downgraded US debt, saying the stunning move was based on a "lack of knowledge" about the nation's finances.
Lack of knowledge? The company provides credit ratings for countries around the world and there's never been a complaint before about the veracity of the Standard and Poors rating for any country, ever. Other countries that have been downgraded have adjusted to it, or altered their course accordingly. Why? Because Standard and Poors are ratings experts. It's what they do.
Geithner also said the debt crisis presents Congress with a chance to "earn back confidence of investors around the world" and he reiterated his support for President Obama, who asked Geithner to stay on even as calls intensified over the weekend for his resignation.
Wrong again. Like Dick Durbin, you need to take accountability here Timmy. It's you and the administration that needs to "earn back confidence of investors around the world". A downgrade doesn't come overnight, and the reason the downgrade occurred was not because of the standoff, but because the cuts were too small. Progressives have a spending addiction. Spending is out of control, more so than in all of American history.
"S&P has shown really terrible judgment and they've handled themselves very poorly," he said in an exclusive interview with CNBC. "And they've shown a stunning lack of knowledge about basic U.S. fiscal budget math. And I think they drew exactly the wrong conclusion from this budget agreement."
More wrongness Tim. The rating summary does contain the following points;
More broadly, the downgrade reflects our view that the effectiveness,stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.
But saying that the Congress needs to prove itself only reinforces those points. But the truth is that the debt trajectory is unsustainable. The truth is your administration has run up so much debt so fast that you accelerated the problem facing the nation's finances to a dizzying degree. The truth is also that debt doesn't come from under-taxation - it comes from overspending. Government revenue is supposed to be the limit to government spending. Liberals always always always want to spend more. More revenue, short of a Balanced Budget Amendment would, with certainty lead to even more spending. Collect a dollar, spend a dollar twenty. That's not logic, it's insanity.

Sorry Tim, you've got to go.

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