Cunning Realist Does It Again

The Cunning Realist has done it again: he's uncovered an oldie-but-goodie quote that seems to sum up the analytical capabilities of at least some of those who are charged with looking after our nation's economic interests.

"It's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation."

-Hank Paulson one year ago today.

One question: are these the words of a liar or a moron?

Comments

[roger]

One question: are these the words of a liar or a moron?
Answer: his real name is Mr.Opiate and all he is trying
to do is white wash all the sinister spots of current
reality,be grateful .

[Keating Willcox]

The man is guilty. He convicts himself with his own words.

[ab initio]

Liar or Moron? Actually you're missing the right word criminal. He's no moron but a very capable manipulator.

[Blurtman]

Liar. He has a Harvard MBA and can't be a MO-RON.

[jerseyguy]

Wait a minute.. I thought he was a hero..

[Abraham]

Please throw some water on Former Secretary Paulson as his pants, like the financial system, are on fire.

[Morne Prinsloo]

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[Chris]

The same applies to Bernanke, as I wrote some time ago:

Bernanke a Liar or a Fool - wordpress

The latest pronouncement from Federal Reserve Chairman Ben Bernanke, the man touted as one of the foremost authorities on the Great Depression, defies any explanation outside those in the title of this piece.

Clearly Bernanke is a man of considerable intellect and has spent a great deal of time considering the intricacies of the international monetary system. Equally as clear, however, is the fact that his unbelievably irresponsible borrow and print policies are going to result in horrifying inflation and economic devastation.

So how can Bernanke have the audacity to say 2009 will be a recovery year? Is this another example of the audacity of hope?
Ben Bernanke Of course, we have the reassurance that ’stress tests’ have been designed to assess the relative strength of US banks and whether they will be capable of surviving given certain circumstances. Does anyone trust this administration or this Fed Chairman to implement any valid test or to reveal honest results? Is it wise to create these tests and then if banks pass them, continue to push them to and past their breaking points? Since when is this all about banks? Banks are just one part of the problem.

What exactly is it about the US economy that has changed so profoundly as to allow for a recovery to begin? Doubling of the money supply? Running soaring deficits for years to come? Looming union control of the auto industry? A card check program that will lead every other industry down path to Detroit? Cap and Trade? More insatiable consumer spending and higher personal debt? China, the primary US lender publicly announcing their displeasure with Obama’s monetary policy? China going on a commodities and gold spending spree to rid itself of its treasury holdings? Higher taxes on productivity?

Those are the realities of the Bernanke, Obama, Geithner policies. Policies begun under the last administration that may temporarily mask the problem, but ultimately bring the world crashing down around us. The transparency of this, the latest episode of kicking the can down the road, is insulting given the preposterous reassurances that inevitably follow.

Economics is not as complex as it is portrayed on Capitol Hill or on CNN. The bottom line is the US does not make anything to sell. For years, the economy has been based on spending money its citizens don’t have. Americans have been sitting at the head table in a five-star restaurant, pigging out to the point of loosening the belt and bursting buttons. Now the waiter is coming with the bill and he isn’t going to take a credit card. In fact, every restaurant in town has a picture of Uncle Sam that says ‘Do not take a check from this man’.

So which one is it, is Bernanke a liar or a fool? It’s an interesting question, but it’s too late for the answer to matter much. The damage has been done and it is catastrophic in scale. To suggest there has been any foundation created that could possibly lead to an economic recovery this year (or at all) is ludicrous. The opposite is true. The elevator is going to the basement and at some point very soon and, for some reason, Obama is feverishly hacking at the cable.

There is an interesting irony to all this. The term ‘golden parachute’ has traditionally referred to severance packages ‘greedy’ CEO’s received upon leaving ‘cushy’ positions. It incites anger and frustration among the proletariat and otherwise unwashed masses. Thanks to the Bernanke squad leading us all off a cliff, it is the citizenry who should embrace the term as an impetus to buy gold such that we might land a little more softly. Those who are clinging to their dollars when gravity takes over are going to be splattered all over the pointy rocks below.

Congratulations, Mr. Bernanke…you have turned the formerly proud and robust Greenback into the real toxic asset.

[roger]

Reality : Its the negation of the medium of exchange
in its present usage.The human race will persist,
the dollar will not "its the system stupid"

[edgar]

Kleptocrat

[chris lovell]

I believe if Bernanke, Paulson, et al suddenly told the God's-honest truth about the economic situation, our collective markets would collapse. Lying is the only choice for them.