Geithner Gets Told To Blow It Out His Azz

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Courtesy of Karl Denninger at The Market Ticker 

I suspect things are about to get a bit warm over toward Athens….

Geithner preached the lessons of the emergency banking support provided by the Treasury and Federal Reserve in reaction to the collapse of Lehman Brothers Holdings Inc., mixing it with criticism of Europe’s crisis-management coordination.

Uh huh. And those lessons are?  Has our economy recovered?  Has debt contracted to appropriate and manageable levels?  Has the federal government’s "temporary" support program of borrowing and blowing 12% of GDP concluded?

Or is the truth, Timmy, that fraud as a business model has now been extended to government and you’re smugly patting yourself on the back for preventing an explosion by pulling the burning wick out of the box a bit further, forgetting that (1) you’re still carrying the box and (2) there’s a dozen pounds of TNT in there and the wick still goes inside!

The imagery that comes to mind when Turbo speaks of such things reminds one of Wile-E-Coyote and his inveterate attempts to blow up, smash and otherwise kill the Roadrunner.  But like the cartoon although Wile-E is often seen with dining apparel in hand nobody ever explains how he’s going to actually eat a blown up, smashed to dust, or buried under tons of rock Roadrunner, should he some day succeed despite his repeated display of "genius."

Europe projects an image of “ongoing conflict” between national governments and the central bank, hampering efforts to put the economy on a sounder footing, Geithner said at a banking conference in between euro meetings.

“Your financial challenges in Europe are eminently in your capacity to manage financially, you just have to choose to do it,” he said.

And how would that be?  See, this is the problem – Germany exports lots of hard goods (like cars, for example) to Europe which then consumes them.  But Europe has consumed them by borrowing, not by producing.  Greece, for example, has a monstrous welfare state, as does the United States.  But consumption in those European nations is how Germany manages to put up the numbers it has economically.

Unfortunately Germany has stoked it’s "growth" with false expectations, as has most of the rest of the western world.  Rather than build a sustainable model in which people produce, pay taxes from that production for government services (that’s redistribution - let’s call it…