{"id":1800,"date":"2009-03-25T15:38:36","date_gmt":"2009-03-25T19:38:36","guid":{"rendered":"http:\/\/www.jasetaro.com\/blog\/?p=1800"},"modified":"2009-03-26T08:58:42","modified_gmt":"2009-03-26T12:58:42","slug":"idiot-geithner-speaks-dollar-sinks","status":"publish","type":"post","link":"https:\/\/www.jasetaro.com\/blog\/2009\/03\/25\/idiot-geithner-speaks-dollar-sinks\/","title":{"rendered":"Idiot: Geithner Speaks, Dollar Sinks"},"content":{"rendered":"

In remarks before Council on Foreign Relations today Treasury Secretary Tim Geithner said the U.S. is open to an SDR linked currency… Geithner later clarified his remarks by saying that “the dollar remains the world’s dominant reserve currency” and that that is likely to continue for some time, but the results of his remarks were predictable<\/a>:<\/p>\n

Treasury Secretary Timothy Geithner sent the dollar tumbling with comments about China\u2019s ideas for overhauling the global monetary system, only to drive it back up by affirming that it should remain the world\u2019s reserve currency.<\/p>\n

Geithner was initially asked at a Council on Foreign Relations event in New York about proposals from People\u2019s Bank of China Governor Zhou Xiaochuan for a new international reserve currency. He said \u201cas I understand his proposal, it\u2019s a proposal designed to increase the use of the IMF\u2019s special drawing rights. And we\u2019re actually quite open to that.\u201d<\/p>\n

The dollar slid as much as 1.3 percent against the euro within 10 minutes of news accounts of Geithner\u2019s remarks. The U.S. currency was down 0.6 percent at $1.3553 as of 12:31 p.m. in New York.<\/p>\n

Roger Altman, who worked with Geithner as deputy Treasury secretary in the Clinton administration, later asked Geithner whether he wanted to \u201cclarify\u201d his remarks.<\/p>\n

\u201cI\u2019d like to ask one final question, in effect on behalf of the market,\u201d said Altman, founder of Evercore Partners Inc. \u201cLet me ask the question this way. Do you see any change over the foreseeable future in the basic role of the dollar as the world\u2019s key reserve currency?\u201d<\/p>\n

\u2018Strong\u2019 Dollar<\/p>\n

Geithner responded by saying that \u201cI think the dollar remains the world\u2019s dominant reserve currency.\u201d In an interview with CNBC broadcast after the event, the Treasury chief said that a \u201cstrong dollar\u201d is in \u201cAmerica\u2019s interest.\u201d<\/p><\/blockquote>\n

Inexperienced, incompetent and in over is his head.<\/p>\n

Related<\/strong><\/p>\n

<\/div>\n