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Keating Undresses Geithner

By Larry Doyle on March 9, 2009 at 4:55 PM in Bank Bailouts, Banking Institutions, Current Affairs, Economy, Global Finance, Infrastructure, International Monetary Fund, Sense on Cents (Larry Doyle blog), Tim Geithner, Wall Street

Former Australian Prime Minister and Treasurer Paul Keating

Former Australian Prime Minister and Treasurer Paul Keating

One of the few countries in the world to escape the worst of this economic tsunami is Australia. I introduced you to former Australian Prime Minister and Treasurer Paul Keating on February 18th in my piece entitled A Fresh and Honest Perspective. Keating was brutally honest in the video clip (thank you SR for providing it!!) included in that article. I love an honest man!!

Well, Mr. Keating has spoken again and I am listening to him very closely as I strongly believe I am more educated and informed as a result. Our domestic officials and media outlets should take heed.

In an article published in this past Saturday’s Sydney Morning Herald, Obama’s Economic Saviour Savaged as Keating Let’s Rip. Keating offers a piercing review of then Treasury Officer Geithner’s structuring of an IMF led rescue plan of the Southeast Asian crisis in 1997-98.

For those unaware, many countries in SE Asia had massive infusions of foreign capital in the form of debt to facilitate infrastructure development. Geithner and then IMF Chief Michael Camdessus structured a plan that injected $200 billion dollars in the form of IMF loans to refloat the economy. Keating maintains that Geithner and Camdessus totally misdiagnosed the problem and in turn the solution.

Keating further maintains that the manner in which that package was handled dramatically impacted the way Asian countries have managed their finances since. The massive surpluses emanating from that region have been a major factor in the massive capital inflows into the U.S. over the last ten years. We do not need to replay that disaster.

I sincerely appreciate the integrity displayed by Paul Keating in connecting the dots.

Those who do not learn from history are doomed to repeat it!!

LD

**Cross-posted from my blog, Sense on Cents. Come by and visit!

  • Doc99

    Has anyone seen Paul Volcker?

  • blogforce one

    Does Geithner even have a staff yet???

    • obamastolemyboyfriend

      I’ve offered to join his staff. I know I can do it because I have used Turbo Tax without incident-lol!

      • tricia spiegel

        Good one obamastolemyboyfriend!

      • Obamastolemyboyfriend

        I’m actually gonna take the lead position and make Timmy my assistant. I can teach him how to use Turbo Tax properly. Then maybe he can take over.

      • http://firefox AnnieCollier

        As have I, OSMBF, and I always manage to get a refund direct deposited within 10 days. I’d say I should qualify as TT Expert for Mr Geithner.

    • FREEDOM_IS_DEAD

      Probably not…no one wants to be associated with his and Obama’s mess of a solution.

  • erin

    I was interested in reading of your respect for Paul Keating. As an Aussie I lived through the time of his Government and consider him to be one of the finest Treasurers and Prime Minister that the country has seen. Unfortunately, because of his blunt and honest assessment of situations the media demonised him, and this eventually brought about his demise at the ballot box. The incoming Treasurer, Peter Costello, took credit for the strong economy which protected Australia from the Asian economic downturn, but credible economic commentators saw it was Keating’s stewardship of the economy that underpinned its strength. As you have seen Keating continues to speak his mind regardless of who he offends, and I for one hope he continues to do so. Sometimes people need to be told what they would rather not hear.

    • http://www.senseoncents.com LD

      Erin,

      Wow. I have only read about Keating and seen a 22 minute video. For an Aussie who has had personal experience with the man to share my respect speaks volumes!!

      I thank you for sharing your perspective!

      The truth may hurt but ultimately the truth will set us free. I intend on listening and looking for Mr. Keating wherever and whenever I can find him.

      http://www.senseoncents.com

  • Chris

    Send this to Hannity, Rush, Beck and anyone else you can think of in the media. Maybe someone will run with it. I watched his unveiling of the finance plans before Congress and I said “uhoh” this guy is as much of a fake as his boss. He is not equipped to handle this and Congress entrusted our treasury to him. Could this get any worse? Yikes I can’t even grasp the total bizarreness of the OB era. None of them know what they are doing. Or do they? Maybe that’s their plan all along. Crash the country and re-make it in their own image. Scary times.

    • Georgia

      You know Chris I keep wondering the same thing. Could all of this be by design? NO ONE CAN BE THIS CLUELESS. I’m starting to wonder who’s he working for……. cause it sure ain’t us!

  • http://BREAKINGNEWS.COM Oisafraud

    This is the best Macroeconomic class I ever had, for free. If haven’t yet, please listen to prime Keating.

    Now every time I hear Obama and his morons talk about another world stimulus, I get so constipated that I feel like taking a shit just to get through the day. Dig yourself a hole a stay put. This thing is going on for next 5-7 years. We are utterly screwed.

    • http://www.senseoncents.com LD

      O….I am glad that you appreciate the clips of Keating and the wisdom he shares.

      On your second topic, I think I will try to keep it clean!! (lol)

    • Obamastolemyboyfriend

      Some people referred to taking a shit as taking an Obama during the election. I still call it that!

  • Sassy

    LD, today our largest employer, Eastman Chemical, announced 5% salary reductions.
    Sometimes our area can be more stable than other parts of the country, but we are now seeing a rather fast deterioration.
    Housing prices are still holding, at least for now, probably because we still have new families coming into the area.

  • Linda C.

    I hear this on NPR Today. Excellent interview with Elizabeth Warren who crunched the numbers of where the TARP funds went. Yep we got screwed again. Not so much as it was a bad idea, but Paulson gave our money away without requiring parity for our “investment” , even though Paulson told Congress that is what he was going to do. Dubai got a $1.00 worth of value for every $1.00 they spent. Warren Buffet received $1.25 worth of value for every dollar he spent. We were lucky to have received 60 cents for every dollar we spent.
    http://www.npr.org/templates/story/story.php?storyId=101611260

  • FREEDOM_IS_DEAD

    Thank you very much Larry. This guy sounds like he actually knows what he’s talking about. Thanks for sharing.

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