Timothy Geithner

The Democratic Presidential Race Has Begun With Former Montana Governor Brian Schweitzer Comments!

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Former Montana Governor Brian Schweitzer has fired the first shots of the Democratic Presidential race, making us realize that the concept that, somehow, Hillary Clinton would win the nomination without challenge, and by default, is a dream that is not going to happen.

Schweitzer, who served two successful terms as Governor of the fourth largest state in land area, but eighth smallest in population, gained a reputation as a western populist, and has been critical of “corporatists”, which in his mind include Hillary Clinton and Barack Obama, who are too cozy with Wall Street, and have not promoted the idea of pursuing indictment of Wall Street leaders for the Great Recession of 2008.

This is one issue on which many liberals and progressives have had trouble with President Obama, who relied on Larry Summers, Timothy Geithner and other icons of Wall Street, in making his economic policies.

So the left of the Democratic Party, including Senator Elizabeth Warren of Massachusetts, Socialist Senator Bernie Sanders, and Schweitzer, among others, have been critical, and while Warren has said she is not running for President, and Sanders says only that he is considering it, Schweitzer has been out front in criticism on economic matters.

Additionally, Schweitzer has thrown a shot across the bow at Hillary Clinton and other US Senators who supported the Iraq War intervention, which he made clear he thought was a major mistake.

So without formally announcing, Schweitzer has hinted strongly that he will enter the race, if nothing else than for the reason that, even assuming Hillary has the edge and might be the nominee of the Democratic Party, that competition is good, and that it would make Clinton a better candidate, than one who is treated with kid gloves and is not ready to fight for the nomination and the Presidency in full combat gear.

Right now, however, the odds that Schweitzer, or anyone else, other than maybe Vice President Joe Biden, can stop Hillary Clinton from being the nominee of the Democratic Party, is highly speculative, but it makes the upcoming primaries and caucuses two years from now a lot more interesting and exciting than it might have been.

So, former Montana Governor Brian Schweitzer, welcome to the fray!

From An Economic Crisis To A Constitutional Crisis: The Insanity Of Tea Party Conservative Republicans In The House Of Representatives!

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With Tea Party and conservative Republicans in the House of Representatives holding firmly against any raising of the debt ceiling by raising revenue through tax reform and the ending of tax loopholes, it seems more likely that we may reach a situation where the good faith and credit of the United States could be lost by August 2, leading to a worldwide economic collapse that would put our nation into another Great Depression!

What could be done to prevent this scenario if no agreement is reached between the White House and Congressional Republicans?

As Secretary of the Treasury Timothy Geithner had suggested in May, the 14th Amendment, Section 4, would be a solution, as it guarantees all government debts must be paid, so the debt ceiling would automatically go up without a congressional vote under such a situation.

But now, there are threats of impeachment of the President, first suggested by black Republican conservative Congressman Tim Scott of South Carolina, a member just as looney as Congressman Allen West of Florida in his irrationality!

Of course, there have been threats of impeachment before over ending support of the Defense of Marriage Act; illegal immigration policy; and the “Birther” controversy by other nutty Republicans, and Obama will not let such threats deter him from doing the responsible thing!

But it means we may be moving soon from an economic crisis to a constitutional crisis, and if that is the case, bring it on, as there is no way that Obama would ever be removed from office by a two thirds vote of the US Senate!

The economic survival of the nation is more important than the fruitless move to impeach another President, bringing back memories of the abuse of impeachment by the Republicans against President Bill Clinton in 1998-1999!

The Next Doomsday: May 16! Debt Ceiling Extension Crisis!

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Now that the government shutdown was averted at the last minute this past Friday, April 8, a much more dangerous deadline is looming: May 16.

Secretary of the Treasury Timothy Geithner has declared that by that date it is essential that the Congress extend the borrowing limit, the federal debt ceiling, beyond the present $14.25 trillion limit, or face the inability of the government to pay its bonds and debts on time, an action which could trigger world wide economic repercussions, and make it impossible for the US government to borrow money, because of a technical state of bankruptcy!

Geithner has informed Congress that if federal accounts were moved around, the doomsday scenario could be delayed to July 8 at the latest!

For the government to fall into default would be extremely damaging, both short term and long term, and yet there are the Tea Party radicals in the House of Representatives, and lunatics in the Senate such as Rand Paul of Kentucky and Marco Rubio of Florida who are, seemingly, willing to risk the nation’s future in their ideological struggle against the federal government!

With the ability of the Republicans to filibuster in the Senate, and the Tea Party members of the House unwilling to bend, the battle over extension of the debt limit will center around the Obama Health Care plan, the environment, abortion rights, and other GOP demands that the Democrats have been able to avert in the most recent battle over shutting down the government.

So the likelihood of the economic revival going on smoothly seems less likely over the rest of this year, and then the 2012 budget plan presents the next crisis, if we ever resolve the debt limit crisis now facing us in the next month to three months!

Economic Policies Under Review As Advisers Leave Obama Administration!

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It seems likely that major economic policy changes are coming soon, partially as a result of the upcoming midterm elections, and partially over the inability so far for the Obama Administration to deal with the constant unemployment numbers, now 9.6 percent, and possibly going up to over 10 percent! 🙁

Yesterday, economic experts said the Great Recession is over, and that it ended in June 2009, after 18 months, starting in December 2007! This is the longest recession since World War II, with the 1973-75 and 1982-83 recessions officially lasting 16 months!

But it is very hard to believe that the recession is over, with so little job growth and the horrible housing market, so it is time to change people and policy!

Nevada, Michigan and California have between 12-14 percent unemployment, and Florida is close to 12 percent, and this is what is killing the Obama popularity in the public opinion polls!

So Larry Summers is leaving, joining earlier departures of Peter Orszag and Christina Romer. This means only Treasury Secretary Timothy Geithner remains from the original economic team, and one would not be surprised if he left sooner, rather than later!

It is clear that unless the economy starts to turn around in 2011, no matter whether the Democrats retain or lose Congressional control, Barack Obama will be in deep trouble for re-election in 2012! The forecast is not promising! 🙁

Hank Paulson Interview In Vanity Fair Magazine

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Hank Paulson, the last Treasury Secretary under President Bush, was interviewed by Todd Purdom of Vanity Fair Magazine over a couple of years, a total of eight times, and the material gathered was finally published today.

In the eight interviews, Paulson made it clear of his high regard for Timothy Geithner, his successor as Treasury Secretary, and Ben Bernanke, head of the Federal Reserve Board, who both worked with him during the financial crisis that broke out a year ago.

He also spoke of his admiration of House Speaker Nancy Pelosi of California and Banking Committee Chair Barney Frank of Massachusetts, presenting a very different view of both legislators than is generally reported in the news media.

While certainly there has been criticism of Paulson and his two partners under Bush who now work for Obama, it is refreshing to see a Republican who worked with Bush understanding that the situation required massive intervention, something often rejected by conservatives and Republican operatives and misunderstood by many average Americans, who seem to think that doing nothing would have been a better answer. To believe that is totally ridiculous and a sign that many American are distressingly ignorant of the economic realities we face.

It will take time and patience to get out of this Great Recession, but we are on the road to recovery, and panic, hysteria, and anger is not going to solve this crisis.