Geithner the Liar

To the question of what may have caused the housing bubble, asked by Senator Rand Paul, Timothy Geithner correctly replied that it was the low interest rates that gave too many people the opportunity to borrow more money than they could repay.

Then Rand Paul asked the brilliant question:

“Can you think of an organization, may be somewhere in New York, that may be responsible for manipulating the interest rates, or devaluing the currency, some kind of a central bank, that may have anything to do with it?”

Geithner is not that stupid, so he immediately responded: “You mean the New York Fed.”

Senator Paul agreed, “May be the Fed, or the Open Market Committee.”

Geithner has been a key figure in both of them. In addition to that, he has been a protege of Henry Kissinger, a member of the Council for Foreign Relations, and an assistant to the CEO of Goldman Sachs. A true insider.

And, as a true insider, he lied to Rand Paul:

“The Federal Reserve can not do what you are afraid of. They can not control the long-term interest rates.”

In other words, Geithner is trying to assure Senator Paul that the long-term interest rates are only affected by market forces, and the Fed nothing to do with them. That means that we should blame the free market which without government interference kept the long-term rates low and thus created the sub-prime loans crisis.

Geithner’s words come less than a month after Bernanke launched the so-called “Operation Twist,” a stimulus move in which the Federal Reserve sells short-term Treasury bonds and buys long-term Treasury bonds. The goal of Operation Twist? To bring the long-term interest rates down. Exactly the same thing that by Geithner’s admission brought about the housing bubble, and what the Federal Reserve can not do, according to Geithner’s claims.

First Bernanke starts an operation to manipulate the long-term rates, then Geithner says the Fed can’t do such a thing. Geithner lied.

Geithner’s shameless lie in the face of the Senate Commission and the American people only shows how much respect the elite has for this nation. And it only shows how much the Obama administration and the Democrats – who elected and approved Geithner to his position despite the evidence for his evasion of taxes – really respect truth. Like his boss, Geithner is an unscrupulous liar. He lies and he knows he can get away with it – because the whole system in Washington DC is based on shameless lies.

Meanwhile, the brainless crowd on Wall Street keeps supporting Obama. And Obama keeps relying on the lies of the same banking elite that the protesters are protesting against. A wonderful example of the moral bankruptcy of the liberal system.