The U.S. Treasury: Boost Economic Growth

Dr. Michael LaitmanOpinion: (Timothy Geithner, the U.S. Treasury Secretary): “Geithner said the United States must strengthen employment, Europe must act more forcefully to quell its debt crisis and China and other emerging markets should strengthen domestic demand and allow their currencies to rise more rapidly.

“‘The imperative remains to strengthen economic growth. Fiscal policy everywhere has to be guided by the imperatives of growth.’…

“‘In early 2009, the world showed remarkable unity and deployed remarkable financial force in rescuing the global economy,’ Geithner wrote. ‘The challenges now are different and cannot realistically be confronted by a repeat of that coordinated global response of financial stabilization and fiscal and monetary stimulus.’”

My Comment: Unfortunately, he is dead serious about this! Meanwhile, we feel the crisis namely because we are applying these old methods of our connections to the new mutual ties that manifest now. The old economy did not take into account reciprocity, but only personal gain, and that is why it does not work in the new network of connections.

To put efforts into the application of old methods means to accelerate the crisis. Possibly, this is good since it helps to hit bottom sooner, analyze the reasons, and find the way out, but it is the path of suffering rather than correction.

Related Material:
IMF: Global Economy Needs Collective Action Now
The US Continues To Face An Ongoing National Crisis
G7: No Clear Economic Plan

One Comment

  1. According to Zero Hedge, countries outside of the U.S. dumped 74 billion dollars in U.S. Treasuries, most of it over the weekend:

    “Over the weekend, we observed the perplexing sell off of $56 billion in US Treasurys courtesy of weekly disclosure in the Fed’s custodial account (source: H.4.1) and speculated if this may be due to an asset rotation, under duress or otherwise, out of bonds and into stocks, to prevent the collapse of the global ponzi (because when the BRICs tell the IMF to boost its bailout capacity you know it is global). We also proposed a far simpler theory: “the dreaded D-day in which foreign official and private investors finally start offloading their $2.7 trillion in Treasurys with impunity (although not with the element of surprise – China has made it abundantly clear it will sell its Treasury holdings, the only question is when), has finally arrived.” In hindsight the Occam’s Razor should have been applied. Little did we know 5 short days ago just how violent the reaction by China would be (both post and pre-facto) to the Senate decision to propose a law for all out trade warfare with China. Now we know – in the week ended October 12, a further $17.7 billion was “removed” from the Fed’s custodial Treasury account, meaning that someone, somewhere is very displeased with US paper, and, far more importantly, what it represents, and wants to make their displeasure heard loud and clear. (Source)

    Undoubtedly, the Chinese and other countries have recently discovered that Italy and Greece, with smaller debt to income ratios than the United States, are less riskier and carry a higher rate of return. This is because, unlike the US, the Rothschild/Rockefeller bond rating agencies have trashed their country’s debt ratings, forcing them to pay a much higher interest rate than U.S. Treasuries. Hey, if you take the risk, you might as well earn the reward!

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