Geithner: We Can Handle Rising Oil Prices

Treasury secretary Tim Geithner told a Bloomberg Breakfast gathering today that the economic "recovery" put nations in stronger positions to navigate through the current wave of oil price hikes.

"Central banks have a lot of experience managing these things," Geithner said.

One wonders. Libyan resources represent 2% of the world's crude oil production. More significantly, Libya's oil goes to a select few, with Italy at the top of the list. Further, Libya's oil is a particularly good variety, making "one-to-one" swaps with, say, Saudi oil, an unrealistic proposition.

Finally, how many central bankers really know their way through the merciless world of Big Oil?

My guess is that Geithner will sing a different song once gas reaches four dollars per gallon. That was the price that sank John McCain's presidential run. Neither the current Treasury secretary -- nor his boss, the President -- wants to experience what the Arizona senator did in the late summer of 2008.

The photo shows Geithner (extreme right), Federal Reserve chairman Ben Bernanke, and Representative Barney Frank, in presumably happier times.