Geithner’s Gamble
Simon Johnson
LOS ANGELES – In a recent interview, United States Treasury Secretary Tim Geithner laid out his view of the nature of world economic growth and the role of the US financial sector. It is a deeply disturbing vision, one that amounts to a huge, uninformed gamble with the future of the American economy – and that suggests that Geithner remains the senior public official worldwide who is most in thrall to the self-serving ideology of big banks.
Geithner argues that the world will now experience a major “financial deepening,” owing to growing demand in emerging markets for financial products and services. He is thinking, of course, of “middle-income” countries like India, China, and Brazil. And he is right to emphasize that all have made terrific progress and now offer great opportunities for the rising middle class, which wants to accumulate savings, borrow more easily (for productive investment, home purchases, education, etc), and, more generally, smooth out consumption.
Phi Beta Iota: The persistent idiocy of the Administration can only be understood if one recognizes that the White House and Congress have been bought and paid for. They are NOT representing the American public interest, and they are a danger to the rest of the world. The silence of the goats in senior positions is reprehensible. Foreign countries should be banning US banks [and expelling US forces] entirely–the US has taken legalized corruption to extraordinary heights, and as Matt Taibbi has documented so well, “no one goes to jail“–the US Government and Wall Street have merged to become GRIFTOPIA.
