Geithner as Pinoccio

I just saw this interview on WSJ.com.

From start to finish, Secretary Geithner's answers are questionable at best, but there is one statement, at 01:17, that is truly stunning:

Geithner:
"We went through centuries of financial crises in the United States, at least two, before the Fed was established. These crises were produced, in part, by the fact that we did not have a Central Bank with the ability to deal with these kind of things ..."

I'm no mathematician, but I believe, if we start with 1913, the year the Federal Reserve Act was signed into law, and we then subtract the year of our independence, 1776 the number is a bit short of "two centuries."

Not to mention the fact that in the early years of our country, the founding fathers actually witnessed the creation and abolishment of TWO central banks -- The First Bank of the United States, and The Second Bank of the United States, respectively.

In fact, the War of 1812 was due in large part to the abolishment of The Second Bank of the United States.

Simple facts, check for yourself.

Next, let's take a look of the "Crises" that Geithner mentions.

Obviously, he wasn't too specific, but if you take five minutes and search "The Panic of 1907," or "The Panic of 1911" or "Sherman Anti-Trust" act, you will quickly realize that the only thing these "panics" had in common was J.P Morgan -- a confirmed "broker" for the Bank of England.

This just doesn't add up ... it's not even close.

Our country grew and prospered for nearly 100 years WITHOUT a Central Bank (1813-1913). And yet, after just two decades under the Federal Reserve ... the stock market crashed, and the country fell into the "Great Depression."

And now, nearly 100 years later ... now what do we have?

Next let's examine Geithner's word choice. Notice how he used the word "produced" when describing "crisis."

Geither knows, as well as anyone, that the crises of the past, as well as the one we are currently experiencing, were all "produced."

Why is it that we, as a nation, tolerate such arrogance at the Treasury and Federal Reserve?

We could stop this with one action -- it's been done twice already in our history -- and maybe the third time will be the charm.