Geithner - Not Lurning frum Grease

Poor Timmy Geithner, he goes to the G20 meetings and hands in his homework and it's all wrong.

Finance ministers of the world’s leading economies have been so spooked by the sovereign debt crisis that they have decided they can no longer wait until economies are growing strongly before they remove fiscal stimulus ...

The communiqué of the meeting made clear the G20 no longer thought expansionary fiscal policy was sustainable or effective in fostering recovery because investors were no longer confident about some countries’ public finances ...

Mr Geithner, himself, was open about his fears in his letter to the G20. “Concerns about growth as Europe makes needed policy adjustments threaten to undercut the momentum of the recovery,” he wrote, adding that fiscal tightening won’t “succeed unless we are able to strengthen confidence in the global recovery.”

The Obama Administration has learned nothing from watching Greece implode and the Euros wet themselves in terror over having to repay debts that are smaller than ours. Instead, they're clinging to the Keynesian point of view that we can borrow our way out of trouble.

As a part of their homework, the Euros conducted a series of experiments in Keynesian consequences. The results led them to correct their hypotheses and rewrite their term papers. Timmy Geithner watched MTV instead.