By Karl Smith, Contributor For some time I have been calling for ever greater tax cuts to ease the Great Recession. Not only are real borrowing rates negative, but there is a strong case that a shortage of safe assets is contributing to a liquidity shortage in excess of what it one guess from looking at the growth of traditional monetary aggregates. However, over the last month several things have happened. First, the Federal Reserve minutes were released. Reading Tim Geithner’s real time assessment of the situation and combining that with what I already knew about his policy positions from the crisis painted a vivid picture of a central banker who thought about the economic in terms similar to mine. Second, Geithner stepping down as Treasury Secretary has prompted posts and articles on his legacy. Reading through those pieces and some of Geithner’s speeches on deficit reduction paints a picture of someone who thinks about the interaction of government debt and the macroeconomy very differently than I do. Based on the information concerning Geithner and the crisis I have to radically revise down my estimate that I have some piece of insight on the workings of the economy that Geithner does not. Note, this estimate did not have to be high to begin with nor is it an estimate of the probability that I have more insights on net. We are just talking about the probability that I have even one single insight that he doesn’t and that probability fell precipitously. Given that, fall I have to revise my estimate that my understanding of the Debt and the Macroeconomy is correct. Why? Well, because if I am correct that means I have at least one insight Geithner does not, but we know that our best estimate of the probability of that being is true is sharply falling. Thus our best estimate of my previous take being correct is falling. In my dream scenario I would get to talk to Geithner about this, and since we cannot agree-to-disagree the problem would be shortly resolved. In the absence of that I have to ask the blogosphere if it knows where I can find the most in depth take on Geithner’s views concerning the interaction of central government debt and the macroeconomy. …read more
Source: FULL ARTICLE at Forbes Latest
Tag Archives: Treasury Secretary
Geithner joining Council on Foreign Relations
Timothy Geithner is joining the Council on Foreign Relations in New York, his first public move since stepping down as U.S. Treasury Secretary last month.
Busy People and Their Autographs
By Nathan Raab, Contributor This month, we have twice run into the evolving American signature. First, President Barack Obama used an autopen to sign into law the “Fiscal Cliff” bill. The autopen is a machine that uses a template to re-create an autograph that is nearly identical to the authentic signature. Second, the Internet convulsed with confusion and apprehension over Jack Lew‘s autograph, which would grace our currency if he is confirmed as Treasury Secretary, but which is really just an illegible scribble. Mr. Lew’s scrawl seems like an adaptation made by a busy man with little care for the form of his signature and a need for speed. One supposes that were he to fill out a form with his name he would use actual letters.
Source: FULL ARTICLE at Forbes Latest
Really? A Failed Citibanker for Treasury Secretary?
By Kevin Spak 
Source: FULL ARTICLE at Newser – Home
Meet the Next White House Chief of Staff
By <a href="/author-detail/3336903">Matt Compton</a>
President Barack Obama announces Denis McDonough as his Chief of Staff, replacing Jack Lew, the President’s nominee for Treasury Secretary, in the East Room of the White House, Jan. 25, 2013.
(Official White House Photo by Sonya N. Hebert)
President Obama today tapped Denis McDonough to serve as his Chief of Staff and lead the team at the White House.
McDonough, 43, was previously the Deputy National Security Advisor. He began his career as a staffer on Capitol Hill — where he served in both in the House of Representatives and in the Senate. In the White House, he previously served as the head of strategic communications for the National Security Council and as the NSS chief of staff.
“Denis has played a key role in every major national security decision of my presidency,” the President said, “from ending the war in Iraq to winding down the war in Afghanistan; from our response to natural disasters around the world like Haiti and the tsunami in Japan to the repeal of 'Don't Ask, Don't Tell,' to countless crises in between, day and night — and that includes many nights. I’ve actually begun to think that Denis likes pulling all-nighters. The truth is nobody out-works Denis McDonough.”
Source: FULL ARTICLE at The White House
Opposition Grows As Jack Lew Proves He Doesn’t Understand Budgets
Jack Lew, President Obama’s choice to replace Timothy Geithner as Treasury Secretary, has been in Washington DC a long time. Anyone in public service that long will have quite a record of public statements that will paint an accurate picture for Senators who are considering his nomination. Last week, I wrote about some of the more outrageous statements Lew has made, and the lack of confidence some elected officials have shown in his ability to faithfully execute the cabinet position to which he has been nominated.
The drumbeat of doubt against Jack Lew is continuing to build. First it was Jeff Sessions, the top Republican on the Senate Budget Committee, who voiced strong opposition to Lew’s nomination. A day later, Senator Mike Lee (R-UT) released the following statement:
“As the country struggles with a painfully slow economic recovery, Washington needs leaders who are willing to support reforms that will put us on a sustainable fiscal path,” said Lee, a member of the Joint Economic Committee. “Unfortunately, the nomination of Jack Lew as Secretary of Treasury signals that the president will continue to pursue the same failed policies of the previous four years: higher taxes, more spending, and more debt. It virtually guarantees the president will not compromise on entitlement reform, and assures that the White House will fight to maintain the status quo of our deeply dysfunctional system. At a moment when the president could have shown a willingness to work with Republicans to fix the challenges that face the country, he has instead moved in a disappointing direction.”
Read More at freedomworks.org . By Jeff Reynolds.
Geithner: Treasury Will Start Missing Payments As Soon As Mid-February
By Steve Schaefer, Forbes Staff Echoing Obama, departing Treasury Secretary says Republicans are wrong to hold America’s credibility hostage.
Source: FULL ARTICLE at Forbes Latest
Dear Treasury Secretary Lew: Please Print
By Robert W. Wood, Contributor Jack Lew's Cursive? No, a Hostess CupCake. (Photo credit: Wikipedia) President Obama nominated Jack Lew for Treasury Secretary but injected a note of levity into the process by joking about his nominee’s loopy signature. Barack Obama mocks Jack Lew’s loopy signature. Everyone seems to agree that it’s nice to ease the tension of […]
Source: FULL ARTICLE at Forbes Latest
Jack Lew's Signature Gets Memed
By Alex Kantrowitz, Contributor VideoBy now, you have probably seen the loopy scribble that Jack Lew calls a signature. His series of squiggles sent the internet into a frenzy this week, as folks tried to comprehend the fact that it might end up on the dollar bill if Lew is confirmed as Treasury Secretary. Of […]
Source: FULL ARTICLE at Forbes Latest
'Lew-py' signature reveals glimpse into Treasury nominee's mind, say handwriting experts
Americans may not be able to read Jack Lew‘s signature, but handwriting experts say the Treasury Secretary nominee’s loopy autograph offers insight into his personality — an original thinker who doesn’t care what others think of him and speaks what’s on his mind.
New Treasury Secretary Lew to Change his Loopy Signature: Should You Too?
By Robert W. Wood, Contributor After the drama and hard feelings of the fiscal cliff, it’s nice to see Washington pols joke a little. President Obama did about Mr. Lew’s Loopy signature. Barack Obama mocks Jack Lew‘s loopy signature. Mr. Lew isn’t Treasury Secretary yet, but assuming he is confirmed, one of his duties as Treasury Secretary is to […]
Source: FULL ARTICLE at Forbes Latest
Can Jack Lew Save Obama's Legacy?
By Doug Schoen, Contributor The news of President Obama’s decision to make his chief of staff, Jack Lew, the next Treasury Secretary is a good one. I’ve known Jack for years. He was excellent as the Director of the Office of Management and Budget and a great chief of staff to the President. That said, […]
Source: FULL ARTICLE at Forbes Latest
Who Is Jack Lew, Obama's New Pick for Treasury Secretary?
By Frederick E. Allen, Forbes Staff (Image credit: AFP/Getty Images via @daylife) Word is out that President Barack Obama will nominate Jack Lew to be the next secretary of the treasury, replacing Timothy Geithner. Most people’s response is, who? Lew is a longtime Washington insider with extensive experience both as a legislative aide and in the executive branch. […]
Source: FULL ARTICLE at Forbes Latest
Reports: Obama Will Name Jack Lew to Replace Geithner at Treasury
By Dan Bigman, Forbes Staff Lew in 2010. (Image credit: Getty Images North America via @daylife) Bloomberg News and The Wall Street Journal are both reporting that President Obama will nominate his chief of staff and Fiscal Cliff point man Jacob (Jack) Lew to replace Timothy Geithner as Treasury Secretary. Citing an unnamed source, Bloomberg reports that […]
Source: FULL ARTICLE at Forbes Latest
Is The Trillion-Dollar Platinum Coin Clever or Insane?
By Donald Marron, Contributor Policy wonks are debating whether a trillion-dollar platinum coin would be a clever or insane way for President Obama to play hardball with Republicans in the upcoming debt limit battle. Here’s what you should know about this crazy-sounding idea: 1. A legal loophole gives the Treasury Secretary apparently unlimited authority to […]
Source: FULL ARTICLE at Forbes Latest