Friday, November 21, 2008

The new Treasury Secretary, he must know where all of the bodies are hidden.

Timothy F. Geithner is President of the New York Federal Reserve Bank and Vice Chairman of the Federal Open Market Committee.  Geithner was raised and educated in India with frequent visits to China.  The Chinese-speaking Geithner graduated from the International School in Bangkok. The future Fed banker came to Dartmouth and then to Johns Hopkins where he majored in East Asian studies. 

Geithner commands all expansion and contraction conducted by big investment banks either by buying securities from the Fed which shrinks money investment bankers had to invest in big corporations or loan to cities, states and the Federal Government or by selling securities to the Fed which gave the investment bankers more money to invest in corporations in the US or elsewhere.
 
Mr. Geithner served as Assistant Secretary and Senior Deputy Assistant Secretary of the Treasury for International Affairs. He joined the Treasury in 1988, and held a variety of positions, including the assistant attach√© at the U.S. Embassy in Tokyo, Japan and the Deputy Assistant Secretary for International Monetary Affairs in the International Affairs Division.  Mr. Geithner worked for Kissinger Associates, Inc. in Washington, D.C. from 1985 to 1988 before joining the Treasury.  Mr. Geithner served as Under Secretary of the Treasury for International Affairs from 1998 to 2001 under Secretaries Robert Rubin and Lawrence Summers. In 2001 Geithner was employed by the International Monetary Fund. In 2003 Paul Volcker was one of those who recommended Geithner for the position of chairman of the New York Federal Reserve Bank, the position that he now holds.  Paul Volcker was the Fed Chairman who played out the last act of the S & L scandal, by tightening the money supply after Fed Chairman Miller had overseen the hyperinflation that forced the S & Ls to invest in junkbonds and forced the banking deregulation that made that possible.

Mr. Obama has reportedly chosen the Federal Reserve Bank of New York's President Timothy Geithner as Treasury Secretary.  

1 comment:

MDSF said...

Hyperinflation?

My recollection is that the term "stagflation" had to be invented to homogenize two related but unlike quantities just to make what was wrong with late Seventies monetary policy scary enough as a single talking point.

I don't remember any wheelbarrowloads of money being traded for food, etc.