Posted on 07/13/2009 11:41:49 AM PDT by FromLori
RIYADH/LONDON (Reuters) - Treasury Secretary Timothy Geithner will seek to reassure Gulf Arab states this week that U.S. dollar assets they hold in large quantities remain a strong investment.
A recent decline in Saudi foreign assets shows the purchase of U.S. treasuries by Washington's Gulf allies, five having currencies pegged to the dollar, at levels seen in the past decades should no longer be taken for granted.
Geithner, offering assurances on the United States' ability to pull out of recession, is combining a visit to Saudi Arabia and the United Arab Emirates, the Arab world's largest and second-largest economies, with a trip to Europe.
He is unlikely to encounter any challenge to the dollar's global dominance on his visit to the world's biggest oil exporting region, analysts and diplomats said.
China and Russia have expressed concerns about the weakened U.S. currency staying as the only dominant reserve currency. But Beijing, which itself holds large quantities of U.S. assets, suggests any change would be a long-term affair.
"The U.S. is looking to reassure Saudi Arabia and the GCC (Gulf Cooperation Council) countries on the outlook of the dollar and U.S. investments given the challenges for the U.S. economy and fiscal position," said Monica Malik, a regional economist at EFG-Hermes in Dubai.
Riyadh-based analyst John Sfakianakis added the trip was "an important customer visit to one of the biggest holders of U.S. government paper and a seminal dollar supporter."
U.S. officials played down expectations that Geithner would pursue any major initiatives, but indicated that one of the aims was to ensure foreign investors would not lose faith in the United States as a primary target for their investments.
"We will want to reiterate that we're open to foreign investment from the region," a U.S. official said.
(Excerpt) Read more at nytimes.com ...
This guy is literal walking and talking joke. I am quite positive that the Arab Gulf states recognize such...
Haven’t read the article yet, but lets hope he is less of a joke in muslim land as he was in China.
They still are laughing at him in Beijing.
Now I’ll read the article.
Talk about hypocrisy??? These socialist fools are doing everything they can to destroy the dollar and the economy that is its foundation -— yet they lie to people who would be sources for their criminal borrowing and subsequent debt to the American public.
Oh, I wish this were 2012.
That’s a relief, I was worried for a sec there. Thanks Timmy!
Oh, I wish this were 2012.
Do you think that by then the ‘progressives’ are going to just quietly lie down? 2012 is when the SHTF.
http://news.yahoo.com/s/ap/20090713/ap_on_bi_go_ec_fi/us_economy_deficit_3
WASHINGTON – Nine months into the fiscal year, the federal deficit has topped $1 trillion for the first time.
Just the fact that Geithner is going around the world telling people we’re not a poor risk is telling.
Oh man are we in for a world of hurt. The greatest depression fighter was President Harding and that is not how he went about it. Of course that used to be taught in schools before most of the teachers were communists.
http://www.lewrockwell.com/orig4/powell-jim4.html
I am not so sure...the Zer0 administration is apparently going to hold some in the Bush Administration accountable for things that they did regarding the war.
Inflationary destruction of the U.S., thus the world's economy, would be a whole lot worse, IMO, so should the perps not be held personally accountable?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.