max,re:NEW PARADIGM SHIFT & Rubin-Paulson.
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maxncompany, re: your comments of:
["...go back and read Slider from last night. He focused on a strong dollar, and a strong dollar going forward, and the "why" comes from Robert Rubin.
This policy means (according to Rubin, and presumably Slider agrees with him), that not only will there be no recession, but there will be a long economic expansion.
Now.........................what has Slider been ranting about for many weeks? A housing induced recession in the US. That fact is in direct contradiction to Slider's post from last night."]
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Max I'd be happy to answer your question if I knew what it was?
(Actually, I know you really don't have one, but I'm willing to play along...)
Cut and paste from any prior posts of mine that you think are in contradiction to what I posted about Rubin & Paulson...and I'll gladly address them.
If you think what Rubin said was this...
(quoting you here)
"...that not only will there be no recession, but there will be a long economic expansion."
...then it's clear you don't even remotely comprehend what Rubin said and no response is needed.
While reading is fundamental...clearly, comprehension is not.
..................................."Hear no evil, see no evil, and speak no evil."
Back to reality...
More from the Goldman-Treasury-Twins:
business.timesonline.co.uk
The Times October 17, 2006
Paulson returns to familiar recipe in China
AMERICAN VIEW WITH GERARD BAKER
DESPITE the dire warnings from the environmental doomsters, it has been a remarkably quiet hurricane season in the United States. The summer is now officially over and not so much as a single feeble tropical depression has touched down in anger on US soil, making it one of the most serene seasons in decades.
In Washington, however, one Category Four storm has been blowing all summer long through the economics establishment.
Hurricane Hank has come to town. Since he arrived as Treasury Secretary three months ago, Hank Paulson has blown out the windows in the fusty institutions of US policymaking, uprooted the core elements of America’s global economic strategy and rained down a hammering tattoo on the roof of America’s network of international financial relations.
Well, OK, I’m exaggerating slightly, but the changes wrought by the former Goldman Sachs chief executive are highly significant and probably underestimated by financial markets. Whether they’ll be successful is another matter.
Mr Paulson has certainly set tongues wagging in Washington in his first few months. His personnel approach has been right out of the traditional investment banking M&A playbook — when you complete a takeover, make sure you quickly get your own people in all the important jobs. Having acquired Treasury, he has quickly peopled important economic policymaking positions with Goldman graduates. Most notably, last week he announced the nomination of Robert Steel, his former Goldman partner, as Under-Secretary of the Treasury for Domestic Finance.
Other members of the Wall Street clan are hovering around the Secretary. Not everyone is happy. When Mr Paulson announced that Deborah Lehr, another Goldmaniac, who is married to yet another member of the clan, would be parachuted in to be responsible for relations with China, those in the various parts of the Administration who thought that they were responsible for relations with China were a bit miffed. There was unconfined joy, I understand, when Ms Lehr quit last week after just three weeks in the job.
Mr Paulson’s regal style has upset other colleagues in Washington’s highly status-conscious political establishment. When he made his first trip to China last month as Treasury Secretary, a familiar stomping ground from his Goldman days, I’m told that he declined to travel as treasury secretaries have been wont to do in the past — business class on commercial airlines.
It is probably decades since Mr Paulson slummed it in United Business, and he was anxious to ensure that he arrived in the Middle Kingdom suitably equipped for a man of his stature. He insisted on having a presidential aircraft and a sizeable chunk of the White House’s presidential advance team, the smart and important-looking people with heavy briefcases and folders who spend a lot of time talking into tiny mobiles.
Yet the biggest changes seem to be more in substance than in style. There’s no question already that under Mr Paulson the Treasury is back at the head of the table of Bush Administration economic policy, after it had been exiled to a status of water-carrier under the previous two treasury secretaries.
Mr Paulson has not only seized the reins of fiscal policy debate — expect another push next year for reform of Social Security, the public pension programmer — but also put the Treasury right at the heart of the big diplomatic issues that are vexing the world. Treasury folk have clearly done a highly effective job of using tools and sanctions to isolate North Korea and Iran financially.
But by far the most interesting and consequential of Mr Paulson’s changes has been on the biggest issue of all — China.
The former banker has made, for the first time, the structural reform of the Chinese economy the centerpiece of US economic objectives.
On his trip to Beijing last month, invigorated, presumably, by the comfortable government aircraft that he took with him, Mr Paulson initiated a new dialogue with Beijing, aiming to elevate the transpacific debate above the usual spats over trade and currencies. This is a key change from the Bush policy of the past six years.
The US trade deficit with China is a problem that needs redressing. But instead of banging on about how China needs to revalue its currency to make it more competitive, as John Snow and Paul O’Neill did, Mr Paulson is focusing on a much bigger goal: achieving radical change in the Chinese economy to make it more transparent, to reform its creaky financial system and, in effect, to breathe more of the free-market spirit into the present communist-capitalist hybrid. That will, of course, presumably have the desirable effect of revaluing the currency and diminishing the trade deficit. But, in the Paulson view, it is important to get the causation right — reform the economy as the best way to get lasting international economic stability.
It looks, in fact, as though Mr Paulson has taken a page right out of the book of Robert Rubin, another Goldman Sachs man-turned-Treasury chief. When Mr Rubin moved to Treasury in 1995 the United States had been similarly engaged in a rather fruitless fight with Japan over what was then the largest US bilateral trade deficit, using a combination of direct pressure on Japan through trade-opening measures and indirect verbal pressure on the exchange rate. Mr Rubin dropped all this and decided instead that the aim should be structural reform in Japan — reform its financial system, deregulate its markets and stimulate consumption.
The Rubin-Paulson approach makes sound economic sense. In the end the global imbalances in the world will not be addressed without real change in Asia’s patterns of consumption and its financial systems.
The problem is, how exactly do you achieve them? In the end Mr Rubin, for all his genius, didn’t bring about change in Japan. In fact, he ended up reverting to putting pressure on the Japanese currency — through open-market operations as well as verbal intervention. At least that is something that the US can control, to some extent. So why should we think that Mr Paulson will have any more success with the even less malleable Chinese? It will, at least, be worth watching.
gerard.baker@thetimes.co.uk
People, if you don't get the New Paradigm Shift right... you are going to miss one of the most lucrative
wealth building opps of the last 25 years.
Money fuels, owns and controls politics.
The golden rule is -- "he who has the gold...makes the rules."
And the Old Guard has the money (Trillions Trump Billions) and they are NOT going to let a bunch of Oil Cowboy's allow Mid-East Oil Terrorists and Russian Mobsters to reap Hundreds of Billions of Dollars in windfall Oil Profits, so that Bush/Cheney Halliburton, Big Oil and the Military Industrial Complex can fill their pockets.
The world is a changing...
The Bush/Cheney Cartel just looted America... and real Americans from both parties are now taking back control.
If you can't read that article above...and "get it"...there is no hope for you...and YOU most definitely ARE...
doomed by your own DNA."
NEW PARADIGM SHIFT: So it was written... so it shall be done.
I remain,
SOTB` |
