Diary

The Artful Tax Dodger Goes to China . . .

Merrily, the Artful Tax Dodger, Tim Geithner, scurried off weasel-like to China to persuade their Party faithful to buy American, bonds that is. Witnessing a startling dry bond market, Geithner hoped to ‘prime the pump’ with some personal assurances. Of course, that isn’t the take the Obama administration is adopting. They are instead saying these high level talks are to insure a fruitful dialogue between the two countries. What China can gain from the Dodger’s advice is sketchy at best.

China is the foremost holder of American treasury bills. Their surplus has gained them status as the major holder of American currency in the world. But, they’re getting concerned. First, their holdings are rapidly losing value as the Fed prints money at an astounding rate. Second, they simply don’t have enough cash flow to sustain the irresponsible spending this administration is doing. There is not enough cash to buy all the bonds the Dodger and the Great Prevaricator want to sell. Nervous about their investments, the Chinese officials are wary about buying any more American bonds and so the bond market has weakened significantly. However, the Artful Tax Dodger was on hand to offer solace to these officials.

The Obama Associated Press, reporting faithfully to the script as usual, has Geithner saying in essence, “a more balanced and stable global economy would require substantial changes to economic policy . . . around the world.” Ostensibly these changes will be directed by the Artful Tax Dodger himself. China is feeling none of these pressures, though they have experienced a slight downturn due to reduced purchases by the Western world. Their own economy is still growing at a rapid pace. Actually using the capitalist model has made their economy explode and the little bump in the road hasn’t caused much hardship in that country. But, that political line is very out of favor in this administration. They only see planned economies as the way of the future.

Geithner couldn’t hold back from giving his hallowed advice to the successful Chinese economic leaders. Obviously knowing more than they do, the former New York Chairman of the Federal Reserve, the official on the ground during the genesis of this financial crisis, had sage words for the Chinese.

“Geithner said the necessary reforms will include getting the U.S. budget deficit under control once the recovery is firmly in place, something he said the Obama administration was committed to doing. He said China will need to strengthen its social safety net in such areas as pensions and health care so that the Chinese will feel more confident about spending more.” Okay, step back and take a deep breath.

The idea that this administration will do anything to bring the budget back into whack is laughable. Absolute bovine compost. The only budget tightening that will happen is in the defense department making us less ready for challenges ahead. Social programs will only do one thing, expand. Their future plans are to make this spending so out of control the only answer is draconian tax increases. These tax increases will not be enough to rein in the deficits, and so new revenue streams will be needed. This will be the beginning of wealth confiscation to pay for these programs. That is the only place Democrats will consider. Watch and learn.

The second part is even more ridiculous. Geithner chides the communist officials, that’s right, the communists, to insure more steady pension and health care benefits. Really. So the Chinese need to adopt the GM/Chrysler/UAW model to make their economy more stable. Is this guy on laughing gas? Is he proposing to these communist leaders they haven’t had enough government spending and so should adopt the highly successful American model of government spending?

This is like an episode of ‘Liberals Gone Wild”, too obscene for children and certainly too racy for most adults. Where’s the money? Should be the cry from every American citizen. But, instead we hear the faint, steady cries of “O-Bam-A, Change, Change, Change. It is hard to believe the American electorate is this naïve and this tone-deaf. But, apparently, it’s still drunk on Kool-Aid.