Gary Locke advises the Chinese on how they can fix American economy.

 In what is becoming theater of the absurd the Obama administration continues find scapegoats for it's failed economic policies.

With more than a year to go until the election the Obama administration is in full campaign mode, and the hypocrisy, and finger pointing is reaching levels of the absurd, even for the Obama administration.

In this video from CNBC Gary Locke raises some valid concerns about the stalled American economy, but fails to explain why he thinks the Chinese should abandon their highly successful economic policies, and begin to focus on creating jobs in America and building the American economy, or why they would even consider following the Obama administration's advice on economics, considering it's perfect track record of FAILURE, except to say it's in Chinese's best interest. I doubt the Chinese are buying any of this. Maybe they should be lecturing Garry Locke ?

Geithner Lectures Europe on Fiscal Responsibilty - Really, he did

Our financial wizard extraordinaire, US Treasury Secretary Timothy Geithner, showed up in Europe for what he expected to be a love in between himself and the European Welfare Zone. Instead he got bitch slapped for chastising European leaders on "loose talk" and infighting. Austria's finance minister put Geithner in his place.

Geithner warns EU against infighting over Greece

"Speaking at a closed meeting of eurozone finance ministers in Poland, he is reported to have told them that the divisions were "very damaging".Some eurozone ministers seemed unhappy with Mr Geithner's comments.They have also delayed a decision over Greece's next bailout loan.

Mr Geithner reportedly said: "What's very damaging is not just seeing the divisiveness in the debate over strategy in Europe but the ongoing conflict between countries and the [European] central bank." He said that "governments and central banks need to take out the catastrophic risk to markets".

His presence at the meeting was measure of how concerned the US is about the danger of economic contagion from Europe's government debt and banking crisis.But his comments about ending divisions seemed to open up some new ones.

Austria's Finance Minister Maria Fekter was one eurozone politician at the meeting who voiced her objection to Mr Geithner's comments.

She said: "I found it peculiar that even though the Americans have significantly worse fundamental [economic] data than the eurozone, that they tell us what we should do."

Mish's Gobal Economic Trends: Geithner Believes "Woods Populated by Pixies"

The quote of the day goes to Jamie Robertson of BBC World News:

"There may be a few people who still believe Greece will not default on its debt, but my suspicion is most of them also believe elephants can fly and the woods are populated by pixies."

In a sense, Geithner is correct. Infighting should stop. However, needs to with the bus in a logical spot, not in woods populated by Geithner loving Pixies. The logical spot is default, with further talk of a Eurozone breakup, not with everyone bowing to Geithner and Pixies.

There is still a sizable amount of people in America that belive Obama, Geithner, and Bernake know what they are doing. This stunt should prove beyond any doubt Geithner is as clueless as Bernake was when he disagreed that we were about to have a recession, and housing crash - We should be very worried.

Foe more on the reasons a Euro breakup is inevitable, please see Eurozone Breakup Logistics (Never Believe Anything Until It's Officially Denied)

Border attacks in Europe - More signs of deflation

From: Mish's Global Economic Trend Analysis

In an "eye for eye, tooth for tooth" retaliation to French farmers throwing Spanish produce in the streets, Spanish farmers have threatened to "look for French interests and cause the most damage possible."

Agrarian Association of Young Farmers in Catalonia announced Friday that blocked the return of French tourists to their country by cutting the road to La Jonquera response to the boycott of Gallic producers and recent attacks on trucks from transporting fruit Peninsula and vegetables.

Asaja coordinator in Catalonia, Albert Castelló, has said that already run out of patience, "eye for eye, tooth for tooth," and said it is absurd to continue with good words and wait for action by governments.

It has also warned that if they attack at the border now and the end of the month "automatically go looking French interests and cause the most damage possible." He called on the Catalan police to be "gatekeepers" and to defend the interests of Catalan and Spanish when these attacks occur, as has ensured that the security forces do Gauls.

Asaja has hit back against the Government for its "immobility" when taking concrete steps to defend the interests of local producers, which this week have been suffering more attacks on the border.

The European Commission has indicated it has not been formally informed of the latest attacks of French farmers against trucks carrying fruits and vegetables from Spain, but has made ​​clear that it condemns "all sorts of illegal and destructive action" and has reminded France that European Union countries should take steps to ensure the free movement of goods.

Courtesy of Google Translate please consider Spanish farmers threaten to block border with France

Hallmarks of Deflationary Times

Trade wars are hallmarks of deflationary times. Disputes between farmers in Spain and farmers in France are a case in point. When there are ample jobs, everyone is happy. When not, people blame their neighbors.

Bear in mind more austerity is coming to Spain, France, Italy, and Greece. A massive European recession is on the way, complete with rising unemployment and civil unrest, and ECB president Jean-Claude Trichet wants to hike rates. It is economic madness.

To be fair, the market should set interest rates not Central Banks.

Where would the market set rates for Europe?

I do not know, nor does anyone else, especially central bankers. However, I do know "one size does not fit all" when it comes to interest rates when countries have widely varying fiscal conditions and problems.

As one of the founding fathers of the Euro, Trichet is in a mess of his own making.

For more on the mess in Spain, please see Numerous Spanish Towns Face Bankruptcy.