Tim Geithner is our Treasury Secretary. Before I say another word, this is what their own website says about the job of Treasury Secretary: “The Secretary of the Treasury is the principal economic advisor to the President and plays a critical role in policy-making by bringing an economic and government financial policy perspective to issues facing the government. The Secretary is responsible for formulating and recommending domestic and international financial, economic, and tax policy, participating in the formulation of broad fiscal policies that have general significance for the economy, and managing the public debt. The Secretary oversees the activities of the Department in carrying out its major law enforcement responsibilities; in serving as the financial agent for the United States Government; and in manufacturing coins and currency.

Tim Geithner was on the networks this weekend to defend the Obama policies. I understand politics. I understand what camp certain people are in. I don’t understand how the three networks let this man get away with lying through his teeth about the fiscal health of this country…and who was to blame. I must tell you, I have hardly watched the networks as they don’t even hide how much they are in the tank. But I was hoping that just one of them would hold this man’s feet to the fire when it comes to this country’s (yours,mine and our children’s) debt. Instead, we got a load of crap.

Frankly, if someone woke up from a coma this morning, one would have thought George Bush was still President because didn’t you know, it is all his fault. I was just waiting to hear Timmy blame the Bubonic plague, the Chicago Fire and the sinking of the Titanic on Bush. According to this trustee of our debt:

Most of the debt that has been incurred was on Bush’s watch…a lie! But let me say Bush was also a terrible steward of our taxpayer dollars.

If it wasn’t for the Republicans stopping legislation, our debt would be lower…a lie! Of course, I heard no one mention that they had unfettered power for two years.

Barack Obama has proposed taking debt from 9% of GDP to 3%. Huh!

Barack Obama is not to blame for the debt! %#@&%

The overall cost of energy has come down. Obviously Timmy has his chauffeur pump the gas.

Again, I understand who this man answers to. But I also understand that these people think you are idiots. They just make things up as they go along and after being in power for over three years, they still blame any bad on others…and take credit for any of the good. And unfortunately, the supine, lapdog, paws in the air media just sit there. How hard is it to read the numbers and just ask: “who are you trying to kid Mr. Secretary?”


Yes…I coined that phrase…or maybe I borrowed it in 06-07 when I noticed what was going on in the housing market as well as with the corrupt lenders. We are now at almost $16 trillion in debt and the people in power do not give a crap. We are hearing nothing about the deficits…just that we have to raise taxes and continue spending. They are getting away with this because markets have cooperated…but if there was anything we have learned from 07-08…DON’T TAUNT THE MARKETS!  Remember, it is never bad until the market says so. But we have had so much manipulation and interference, we have no clue where markets really are or where they will end up. Ben Bernanke has purchased over 60% of our bond issuance in the past year…funding the massive debt with conjured up money. Who is going to buy these bonds away from the Fed? If the bond market wakes up, one has to worry about what we are seeing across the pond where rates have been spiking. With the Fed holding trillions in bonds with no one to sell them to…who then takes the loss as rates must go higher to fund the out of control debt. I am afraid between Geithner and Bernanke, the two most important trustees of our taxpayer dollars, we have nothing more than two people who believe in more leverage and debt to cure a problem of leverage and debt. Neither one seem to be the least bit worried. I am afraid balloons only expand so far.

Hoping to be 100% wrong on all this…but I think all of us logical people know better.

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.

1 reply
  1. Avatar
    J "Rolin" Stone says:

    Your Henry Clay quote has a typing mistake.

    Here’s another Henry Clay quote that I particularly like:

    “Of all the properties which belong to honorable men, not one is so highly prized as that of character.”

Comments are closed.