Posts Tagged ‘US Treasury’

The Fix Isn’t In

Sunday, April 4th, 2010

China: currency manipulator?

Of course China is a currency manipulator. The artificially low peg to the dollar sustains a beggar thy neighbor export policy that costs millions of jobs worldwide.

Will the Treasury state the obvious? Not right away, apparently!

We need the Chinese on board for more pointless sanctions on Iran, so the idea is basically hit and hope: get the Chinese to let their currency appreciate 5-10% (what’s needed is more like 40%), declare victory and change the subject to more posturing about Iran.

Gorilla says: “We want them to manipulate the currency, so we won’t say they’re doing it until it’s not done!”

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Why Not Try HEMP?

Thursday, January 28th, 2010

The Home Affordable Modification Program (HAMP) is out with some new guidelines!

The program’s been a dismal failure, as only a few thousand homeowners have been able to obtain permanent loan modifications, while the number of foreclosures this year is expected to exceed 3 million (it was over 2 million last year). As Calculated Risk notes, the new guidelines suggest that temporary modifications are surging and going nowhere.

Perhaps its time for a bit of brand retooling…

Gorilla suggests: “What about calling it HEMP (Highly Elated Modification Placebo)? Should work wonders in California!”

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More Capital, More Hoarding

Thursday, September 3rd, 2009

The Treasury Secretary thinks that higher capital requirements will make the future less morally hazardous.

He’s right, except:

1) Many major banks, and far more minor ones with commercial real estate portfolios, are effectively insolvent, so they’re hoarding every bit of capital they can. Once they mark down their remaining worthless, toxic assets, to the tune of several hundred billion, all the capital hoarded in the world may not be enough to save them. Our Treasury Secretary is hoping that the economy will recover before that shoe drops, so as to validate his “kick the can” philosophy.

2) The Fed’s holding trillions more of these assets, having effectively swapped its independence for the high honor of being a Structured Investment Vehicle of the US Treasury. Having become a long-term investor, Ben Bernanke will channel Keynes: as dead as dead can be.

Gorilla liked the juxtaposition with this article:
“In Pastiche We Trust! Bing Crosby sang it best: When the euro at night meets the gold price today, no one waits for thee!”

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The Barn Door Called Holbrooke

Tuesday, July 28th, 2009

When you lack a strategy, but want to pretend things aren’t going south, there’s really only one man to call: Richard Holbrooke.

We’re approaching year 15 of NATO forces in Bosnia, the result of Holbrooke’s last Special Envoy “breakthrough”.

Meanwhile, in Dayton, Ohio, where Holbrooke once gave peace a chance, the unemployment rate’s gone from 3.4 to 11.5%.

I’m certain the locals wouldn’t mind having a few moderate Talibaners, a sharp-dressed man like Hamad Karzai, and the Pakistani intelligence services in town to stimulate the local economy.

Anyhow, firm and resolute, an envoy’s envoy, Holbrooke opines: We need a new task force on Taliban drug money!

And here I thought we had this already, a little thing called The US Treasury Office of Terrorism And Financial Intelligence.

Now granted, this agency’s been doing a bang-up job in places like Mexico and Colombia, you can hear the bangs outside your window most every night down there, but that’s only because we’re financing both sides of the war on drugs.

In Afghanistan it’s vastly different, there are way more than two sides and NATO’s doing its level best to finance each and every one.

Diplomatically, Gorilla is stumped: “We could make Afghan drug lords work for Big Pharma, in the same way Mexican and Colombian drug lords work for American gun dealers, but then how would we fill Holbrooke’s valuable time?”.

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