Timothy Geithner Wants Strong Dollar?

The idea that U.S. Treasury Secretary Timothy Geithner said a strong U.S. dollar was important to the U.S. would be hilarious if it wasn't so pathetic and damaging.

Geithner's boss Barack Obama and the Federal Reserve have done everything they can to continually debase and destroy the value of the U.S. dollar, and they still aren't stopping printing money as Geithner speaks out of one side of his mouth, while giving orders to spend more money on the other.

We don't have to believe Geithner, who pleaded that we have to "recognize" that he means it. All we have to do is watch his actions, the Federal Reserves actions, and the horrendous policies of Barack Obama to know the U.S. dollar is in one of the biggest crisis of its existence, and absolutely nothing is being done to correct that except nonsensical talk from people like Geithner, while they continue in the same practices they always have. which led us to this economic crisis in the first place.

This year an extraordinary record-breaking deficit of about $1.8 trillion will be experienced by the U.S.

None of us should listen to anything politicians say about the U.S. dollar, with the exception of Ron Paul, as the rest are either clueless or outright dishonest as to what they've allowed the secretive and renegade Federal Reserve to do. Just watch and observe what is being done while you block out the talk. That's the only way to get the reality of what's happening, and not the fiction being asserted.

Hopefully the bill to audit the Fed will go through. At that time we'll see what it is they've been fighting to keep from having to disclose. They're worried. They should be!

U.S Dollar Collapse

FDIC Chairman Tapping Treasury Credit Line?

FDIC - Deposit Insurance Fund

Just three weeks after FDIC Chairman Sheila Bair said "Not at this point in time," when asked if she would need to tap into a Treasury credit line, she has changed her thinking and now says pretty much all options are on the table, implying a real crisis, which most of us probably know about.

At this time, the FDIC estimates that the agency will need somewhere around $70 billion through 2013 to be able to insure bank customers' deposits. The Deposit Insurance Fund now is at its lowest level since 1992.

The Deposit Insurance Fund has plunged to 0.22 percent of all insured deposits, below the mandated minimum level of 1.15 required by Congress. So far 94 banks have fallen in 2009 as of this writing.

Alt-A and commercial loans pretty much guarantee that 100s of more banks could collapse before it's over.

In May, Congress increased the FDIC credit line at the Treasury from $30 billion to $100 billion.

While Bair rightly said that the existing financial regulatory system should be changed in order to keep large banks from becoming too big to fail, she ignores that those provisions are already in place: it's called going out of business or declaring bankruptcy. This is why the Federal Reserve needs to be shut down so it can't pour taxpayers' money into the market to shore up banks and other businesses that are run poorly and can't compete.

FDIC - Deposit Insurance Fund

Money Market Fund Guarantee Program Now Over

Money Market Funds

In response to the collapse of Lehman Brothers last year, and the resultant fall of the net asset value of money market funds below $1, which is called breaking-the-buck, the Treasury Department put into place a temporary Money Market Fund Guarantee Program to help stabilize the money market funds in the country. Today that guarantee program will expire as planned.

The Money Market Fund Guarantee Program was put into place as investors in the money market mutual funds rushed to remove their capital from the funds, after the unusual experience of losing money on them. The temporary guarantee calmed things down, once it was understood their money wouldn't lose any of its value.

A money market fund is a mutual fund which invests primarily in short-term, high yielding US government bonds, commercial paper, and other short-term debt instruments. Very rarely has the net asset value of money market mutual funds fallen below $1, but it has happened, and while they aren't backed by the FDIC, overall they've been considered a very safe investment since they were instituted in 1970.

Money Market Funds