Top-down economic thinking

Reader comment on: Geithner and Trade Surpluses

Submitted by J.Johnson (United States), Oct 22, 2010 22:13

Apparently Geithner slept thru the crude oil price explosion a couple of years ago, the macro international economic effects of which crushed the puny efforts of the U.S. and the other big industrialized nations to control their current account balances. Depending on who is doing the calculating, the flow of funds to OPEC and the other big oil producing countries was somewhere between $500B and $1 Trillion in just a 12 month timeframe. And I guess he's still sleeping thru the unprecedented creation of money by the Federal Reserve, with much more still to come per Bernanke, which, by significantly affecting the value of the dollar, not to mention the currencies of our trading partners is significantly affecting current account balances around the globe. Can't Goldman Sachs just offer this guy a soft job so he leaves and we get somebody new who is at least slightly competent?

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